Archived press release

Asda/Wal-Mart Exploits Planning Loophole

1 July 2003

US retail giant Wal-Mart is exploiting a loophole in UK planning rules to greatly expand its floorspace, MPs and Peers will be told today. At a briefing in the House of Commons this evening [1] Friends of the Earth Executive Director Tony Juniper will be speaking with Colin Breed MP, whose recent report [2] criticised Government for not doing more to address the negative impacts of the dramatic rise to dominance of the supermarket chains.

Asda, which is owned by Wal-Mart - the worlds biggest retailer - intends to put in 40 mezzanine floor extensions around the country. It has already installed one in York and is in the process of adding 33,000 square feet to its store in Handsworth, Sheffield. These developments do not require planning permission because they are internal to the building, so the local authority and local community have no say about the development.

But large scale mezzanine floor or basement extensions, like new stores, can have very significant impacts on local communities and businesses. Asda is already claiming that its mezzanine floor in York, housing non-food goods, is drawing people in their cars from much further afield. Traffic generation can cause congestion and pollution and would normally be assessed by the planning authority.

It is not only Asda which has spotted this opportunity. Any larger retailer can exploit the same loophole. The scope for uncontrolled expansion is considerable and could make a mockery of national planning guidance which seeks to protect town centre shops, local communities and the local environment.

Friends of the Earth is proposing an amendment [3] to the Planning Bill which is currently progressing through Parliament [4]. The amendment would mean that the installation of additional retail floorspace within an existing store would require planning permission.

Friends of the Earth is also opposed to Wal-Mart's attempt to take over Safeway and is urging the Government to block its bid. Market concentration of the big supermarkets has already gone too far. The top five supermarket chains now account for two thirds of food sales, while half of the country's food is now sold from just 1,000 giant stores. The power of the big retailers has enabled them to squeeze prices to farmers, and drive small shops out of business.

Notes

[1] The briefing will take place at 6pm in Committee Room 13.

[2] `Checking Out the Supermarkets II', Colin Breed MP, March 2003

[3] Details of the amendment from Friends of the Earth.

[4] The Planning Bill, which has experienced delays to its timetable, will reach third reading in the House of Commons in the Autumn and should be considered by the House of Lords before Christmas.

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Published by Friends of the Earth Trust