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Tesco response to competition commission final report

The Competition Commission today published the final report following its investigation into the UK groceries market.

Responding to the report Tesco Chief Executive, Sir Terry Leahy said:

"We are pleased that the Competition Commission has found yet again that the market delivers a good deal for customers and that competitive rivalry is alive and well. Quality and choice are better than they have ever been and Tesco prices remain low at a time when the current economy means that families are keeping an eye on their weekly shopping bill.

"We welcome the recognition of the benefits we have brought into the convenience sector and that the Commission has laid to rest many of the original claims that led to this Inquiry.

"We are not sure that the main recommendations will improve the life of the British consumer. We welcome the broadening of the supplier code, but we share the concerns of panel member Professor Bruce Lyons that an ombudsman would be counter-productive and would reduce the benefits of competition.¹

On land and planning, the Competition Commission has dismissed allegations that retailers hoard land, and found that the main obstacle to supermarkets expanding their offer to customers was the planning system.

Sir Terry commented: "We are more than happy to work within the new rules on restrictive covenants. On the other hand we can't see how the proposed competition test would have any benefits at all. This test would make the planning process even slower and jeopardise job-creating regeneration schemes. We believe it would take away power from consumers to choose where they shop."

30/04/2008

¹Paragraph 11.347

For further information please contact the Tesco Press Office on 01992 644645. Out of hours the Duty Press Officer can be contacted on 01992 644733 (option 2 from voicemail menu)