The UK's largest supermarket said 'Tesco towns' were a myth and blamed rivals for not being good enough. The retailer has a 30 per cent share of the UK's£125 billion grocery market - more than double its nearest rival.
According to the retailer, the commission's evidence will show that there is healthy competition in all areas of the market. Tesco said: 'Less efficient retailers and suppliers sometimes struggle and seek to blame those that are more successful.'
Tesco has been accused of dominating the local market, but the grocer has called for the term 'local' to be redefined. It said that the body has underestimated how far people drive to do their shopping and that what constitutes a local travel radius needs to be redefined from 15 minutes to 30 minutes or more. The retailer also said that the grocery market is now national, rather than local, because consumers shop online and this should be taken into consideration.
Tesco chief executive Sir Terry Leahy also said: 'I am concerned that consumers barely get a mention and I urge the commission to ensure that they are top of the list for the remainder of the inquiry. I believe passionately that consumers have benefited in so many ways from the intense competitive rivalry in this industry.'
Competition for land and new stores is also very strong and the report reveals that Tesco's main competitors are acquiring significant holdings of land. Leahy said this points to further intense competition in the future.
He added: 'The grocery market is one in which customers can switch easily between different operators as their respective retail offers worsen or improve and many of our rivals are now better placed than they have been for some time.'
The Competition Commission will announce its provisional findings in June.
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