Demands for cap on market share
Netto UK managing director Claus Waedeled this week demanded that the Government regulate the supermarket sector by putting a cap on retailers' local market share.

Waedeled's call followed the publication of the All-Party Parliamentary Small Shops Group's High Street Britain: 2015 report, which demanded that an independent regulator be appointed by the Government to investigate the grocery sector.

Waedeled said supermarkets should not be able to build a big share in one local market by opening several stores in close proximity. He said: 'A local market share cap would encourage competition and the industry would effectively regulate itself.'

Labour MP Jim Dowd, who chaired the group, said a regulator could force retailers to dispose of stores to ensure local competition. The group also recommended a revision of the two-market ruling, under which convenience is viewed as a separate market to one-stop supermarket shopping.

Tesco, Sainsbury's and the BRC slammed the findings. Tesco group corporate affairs director Lucy Neville-Rolfe said: 'The consumer is the best regulator and there is room in a thriving market for anyone who satisfies customers.'

A Sainsbury's spokeswoman said: 'Recent investigations have proved the market is competitive and acts in the interests of consumers, but the report doesn't recognise that competition is healthy.'

BRC director-general Kevin Hawkins argued: 'Thirty million people will shop at supermarkets this week, next week and the week after. A regulator will not preserve one small shop that doesn't satisfy customer needs.'