Archived press release

Join the great supermarket debate

25 October 2006

An alliance of farmers, environmentalists and public interest groups is urging local shopkeepers, farmers and consumers to have their say in the great supermarket debate. People have just two months to submit their views to the Competition Commission which is currently investigating the dominance of the big supermarkets in the grocery market.

The inquiry started earlier this year and is looking at how the supermarkets treat their suppliers, whether they are harming competition between retailers and whether the increasing dominance of the big retailers is reducing choice for shoppers. The decisions of the Commission could affect the lives of millions in the UK and abroad.

Friends of the Earth Supermarkets Campaigner Sandra Bell said:

"This Inquiry into the dominance of the big supermarkets is crucial to the future of our high streets and the livelihoods of our farmers. But the Competition Commission can only act if it is given the evidence. People have just two months before commissioners make up their minds on whether there is a problem. Farmers who think supermarkets are treating them unfairly and local shopkeepers whose businesses are threatened by the big supermarkets should contact the Commission now".

Tesco alone controls some 30 per cent of the market and in some UK towns it takes over half of all spending on grocery shopping. The Breaking the Armlock Alliance [1] thinks that the biggest supermarkets have grown too powerful, allowing them to bully their suppliers and push local shops out of business.

But the Competition Commission has told members of the Alliance that not enough of the affected individuals have so far provided evidence that big supermarkets squeeze farmers or make it hard for local shops to thrive. The Alliance is concerned that many farmers and shopkeepers do not even know that the Inquiry is happening and want more people to come forward with their views.

Michael Hart (The Small and Family Farms Alliance ) said:

"We know that farmers have been nervous about speaking out if they are being bullied by the supermarkets but this Inquiry is the best opportunity we've had for years to redress the balance and we are now in a Countdown to the Commission's deadline. Farmers can give confidential evidence to the Commission without fear of reprisal"

Nigel Dowdney (an independent retailer in Norfolk) said:

"The Competition Commission could give a great boost to local shops if it acts to rein in the big supermarkets. It's vital that they hear direct from independent retailers about how supermarkets are making it hard to stay in business and from shoppers about what a huge loss it is to them when local shops close down. This could well be the last opportunity available to everyone one of us to have a say over the future of independent food retail in this country""

Members of the Alliance have told the Competition Commission that many farmers are struggling to make ends meet because of the way they are squeezed by the supermarkets and that this will make it harder for shoppers to find good quality local or even British produce.

Commissioners have also heard how in 2004 alone more than 2,000 local shops closed down and that this is at least partly due to the difficultly of competing with the big supermarkets. The loss of local shops means less choice for consumers and can mean that people are forced to drive further to shop. For people without cars the loss of local shops within walking distance can affect their access to healthy food.

But the Commission is keen to hear directly from people that have been affected by the behaviour of the big supermarkets, for example shopkeepers whose turnover has gone down since the opening of a new supermarket nearby or local councillors who have seen the loss of choice of independent shops in their towns. Many farmers have been wary of coming forward with evidence about how the supermarkets treat them for fear that the supermarkets would stop doing business with them but correspondence or hearings with the Commission can be in complete confidence.

Shoppers can also contact the Inquiry with their concerns or simply to tell the Commission that they value the choice offered by their local shops.

The Competition Commission can be contacted directly at Groceries@cc.gsi.gov.uk or by writing to The Inquiry Secretary (Groceries Market Inquiry), Competition Commission, Victoria House, Southampton row, London WC1B 4AD.

Individuals can also send a message to the Commission via the Friends of the Earth website [2]

Notes

[1] In 2001 Tony Blair admitted that supermarkets had "pretty much got an armlock" on farmers but did not take any action to put trading between supermarkets and suppliers on a fairer basis. Breaking the Armlock was set up in 2003 to campaign for a new statutory Code of Practice to be imposed on supermarkets to ensure fairness in their dealings with suppliers and for a Retail Regulator to be set up to enforce the Code.

Members of the Alliance include ActionAid, Banana Link, British Independent Fruit Growers Association, farm, Farmers for Action, Farmers' Link, Farmers' Union of Wales, Friends of the Earth, Grassroots Action on Food and Farming, International Institute for Environment and Development, National Federation of Women's Institutes, National Sheep Association, New Economics Foundation, Pesticide Action Network UK, Soil Association, Small and Family Farms Alliance, Women Working Worldwide and WyeCycle

[2] www.foe.co.uk/campaigns/real_food/press_for_change/ ¬
competition_commission/index.html

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust