The Competition Commission may outline proposals to appoint an independent ombudsman to oversee supermarkets’ relations with suppliers, in its provisional findings report on Wednesday.
The intention to strengthen, or replace, the voluntary Supermarket Code of Practice, which some suppliers have little confidence in to resolve disputes with supermarkets, is likely to be one of a number of recommendations in the Competition Commission’s provisional findings.
Competition Commission chairman Peter Freeman is also expected to suggest changes to the planning system in order to increase competition in some local towns where a supermarket chain, notably Tesco in several locations, has a dominant presence.
Freeman could propose dropping the so-called needs test, which requires supermarket chains to prove that a new outlet is needed on the outskirts of towns, before they can be granted planning approval.
The report is likely to argue instead that the introduction of a fascia test would stimulate greater competition.
The fascia test would encourage preferential treatment for retailers without a presence in a town, whereas the needs test tends to favour retailers already in a location.
The Competition Commission will also put the use of restrictive covents, where retailers sell stores under the condition that they are not used by rivals, under the microscope.
Last week, Asda called on the Competition Commission to leave the grocery sector alone for 10 years after completing its inquiry, as revealed by Retail Week (October 26).
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