Archived press release

MPs take evidence on supermarket impacts on the high street

3 November 2005

Tesco will today (Thursday 3^rd November) give evidence to the All-Party Parliamentary Group for Small Shops [1], following warnings that the supermarket giant's rapid expansion is bad for British business, bad for consumers and bad for the environment. Friends of the Earth is calling on the All Party Group to press for changes in planning policy and for the UK Competition Commission to stop the Tesco takeover.

Friends of the Earth pointed to evidence that some 2,000 independent stores went out of businesses in the last year alone, unable to compete with the promotions and planning and taxation policies which favour multiples over smaller shops [2]. Tesco plans to open more than 100 new stores and expand its existing stores into hypermarkets [3] undermining the viability of local shops and businesses.

The environmental campaign group also highlighted the problems faced by suppliers as a result of the supermarket chain's dominance. Tesco's buying power squeezes down prices for suppliers - but consumers find they have less chance to buy local and regional produce.

Tesco now makes more profit in five minutes than the average UK farm makes in a year [4].

Friends of the Earth also has evidence of more than 150 planning disputes which have taken place this year over Tesco store planning applications [5].

Friends of the Earth's Supermarket Campaigner Robin Webster said:

"We're delighted to see that the All-Party Group is turning the spotlight on Tesco. The supermarket giant's growth is damaging British high streets and restricting consumer choice. Communities across the country are now starting to stand up against the march of the multiple retailers. But the Government must recognise the need to protect small farmers, consumers and our high streets by putting in place a strong Code of Practice and planning guidance to stop the high street wrecker before it is too late."

Friends of the Earth is calling on the competition agencies to tackle Tesco's dominance to protect the future of communities, the environment and independent retailing in this country. The environmental campaign group says that both the competition and mergers policy and also planning policy could be effectively used to do this. Friends of the Earth is calling for a moratorium on mergers in the retail sector.

Notes

[1] The All Party Parliamentary Group on Small Shops will take evidence at 10.30am in the Houses of Parliament. Friends of the Earth will be available for comment outside the Houses of Parliament ahead of the meeting. For more information contact the press office at Friends of the Earth.

[2] See www.foe.co.uk/resource/briefings/the_tesco_takeover.pdf (PDF)

[3] There are now 100 "Tesco Extra" stores in the country, totaling 6.6 million square feet of retail space, compared to only 23 in 2001. The proportion of Tesco Extra floorspace has increased from 8.7% of their total in 2001 to 27.2% in 2005. The average Tesco Extra is 66,000 square feet. Information from Tesco 2005 and 2001 Analyst Packs. Available at www.tescocorporate.com/analystpacks.htm. In their Annual Report Tesco says, "we anticipate opening a further 20 a year, mostly through extensions."

[4] Tesco Group profits in 2005 were £2,029 million which equals £3,860 per minute. Average UK farm income in 2005 was £17,500. (www.defra.gov.uk).

[5] Available on request.

The Tescopoly campaign website [www.tescopoly.org] provides evidence from a range of public interest groups that show just how much of a problem Tesco is and how local communities around the UK are fighting back.

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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