Small Retailers Vs The Big Four

Under the proposals, any brand looking to open a new local outlet will have to discuss it with the authorities first to assess whether having another branch in the area is appropriate.

While the move increases competition amongst the big players, it is not clear how beneficial the move will be to smaller retailers in the said village, town or city, who will still have the free parking facilities and bulk buying power of the supermarkets to contend with.

“It’s all well and good increasing competition between the multi-billion pound supermarket chains but we would like to see more consideration given to ordinary shop owners desperately trying to survive,” says Phil Orford, chief executive of the Forum of Private Business (FPB).

The FPB has expressed its belief that the Competition Comission overlooks the plight of today’s independents and is calling for it to do more to help them remain competitive.

“I think it is fair to say that the major supermarkets are in a very secure position, despite the recession, and need little help from the Competition Commission,” says Mr Orford.

“Instead, I would urge the Commission to focus its efforts on helping independent retailers - the lifeblood of the British high street - to remain viable against the competition from the supermarkets,” he adds.

However, since 2000 sales in supermarkets have grown by 26% and by 19% in large convenience stores, while specialist stores experienced only a one percent growth in sales, according to an 18-month inquiry carried out by the Commission last April.

Despite the figures, it insisted that, although it is often difficult for smaller businesses to compete with the likes of Asda and Tesco, their future is not under threat.