Save our Sheringham - Say NO to Tesco

Monday, October 23, 2006

Talking Tesco

Tesco is fighting back against rivals' claims that it dominates the grocery market with a new website to limit the fallout from the Competition Commission's probe into the sector. "Talking Tesco" was launched as the group's four biggest competitors ganged up against the market leader in their submissions to the watchdog's inquiry. It is the supermarket giant's attempt to quash claims that its high share of local markets is bad for shoppers. From lower prices and higher product quality, to more choice and better service, Tesco paints a glowing picture and it is the latest volley in a public relations' offensive.
According to weekend press reports Sainsbury’s, Asda, Morrisons and M&S have all demanded changes to planning regulations governing new stores in their submissions to the competition commission inquiry into the grocery market. According to Sainsbury, Tesco has 55% of the "landbank" of sites in the process of being developed into new grocery outlets. "Consequently, Tesco's market share could reach 38% by 2010", says the Sainsbury submission. It adds that if Tesco also maintains its recent faster growth rate, it "would achieve an even greater market share of 43%". The commission is expected to publish its initial thoughts in December and plans to publish its final report next October.