Talking Tesco: UK Competition Commission

Why are we publishing these comments?

Tesco has been reading with interest the third party comments on the Groceries Market Investigation that the Competition Commission has been publishing on its website. Our formal submissions have addressed many of the issues raised by these comments, particularly those of some of the professional lobbying organisations. However, a number of submissions on the Competition Commission's website contain more specific comments about Tesco which we have not covered in our formal submissions.

Some of these specific comments are inaccurate and misleading, and we are providing a series of short notes in order to put the record straight. In the interests of transparency we are today publishing the first such series of notes.

Consumer No.39 - Partick, Glasgow

Ms Billington suggests that our application for a store on the Beith Street site (a former scrap yard) in Partick, Glasgow was withdrawn following opposition to our proposals from some local residents.

Public support for our proposal

Our first planning application for this site in Partick Glasgow was revised (rather than withdrawn) following extensive consultation with Glasgow City Council, the public and other parties. Although the original application received a number of objections, as Ms Billington notes, we believe (following a recent public exhibition and other supportive feedback) that the current proposals are widely supported.

At our recent public exhibition, we invited feedback from residents and the majority were supportive of our plans. Residents' comments included:

"I think the scheme will support and compliment the surrounding area very well. This land is currently unpleasing to the eye and a supermarket of this size is greatly needed."

"I would very much like to see this project going through as Partick and surrounding areas need more competition."

"Much needed development. Local supermarkets aren't doing enough for us!"

"The regeneration of wasted space is needed. Proposals are good use of space."

"I think it is a great proposal. Generating more public facilities."

"Thank you so much for choosing Partick. Can't wait to be brought into the 21st century. Love your store."

These comments have been echoed in the local press:

"The much needed redevelopment of a wasted, ugly and unused space that blights Partick Cross? Surely anyone that lives in the local area can appreciate the benefits that a bit of gentrification would bring to the area."

"The location of Tesco's so near Partick Cross will mean hundreds of local people will be able to walk to a decent supermarket."1

"No-one I know is opposed to a local Tesco."1

"Having recently moved into the area, I am trying to cut down my car movements. I walk to Morrisons, and Sainsbury's in Partick for shopping but these stores do not have the choice I want. I admit to jumping in the car and going further for choice. For this reason, I will welcome the new Tesco in my area. I am also acutely aware of the pressure against a new Tesco in the area probably making my opinion in forums like these a minority. But I do think the amenity of the area will be improved with this development."2

Following the public exhibition we took into account the comments made by residents and following further consultation with the Council, the plans were revised once again.

Benefits to Partick

We believe that a new store on this site would bring a host of benefits to the area. At present the site is derelict and highly contaminated after years of use as a scrap yard. A new store would regenerate the site and bring more choice and a greater range of goods and services to the surrounding community including hundreds of jobs, new housing and leisure facilities.

Ms Billington believes the leisure facilities will include a pub, but we can assure Ms Billington that this is not the case. The leisure facilities will comprise of a student union but will not include any facilities for alcohol sales.

We understand concerns about the effect of our store on local shops. However, the new store would help retain within the Partick area business which is currently leaking out to other out-of-centre stores. We are also redeveloping our Maryhill store (enhancing the shopping environment for customers there and providing a further 160 jobs) which is close to Partick. A new Partick store, which keeps trade within Partick, will assist local businesses, reduce car journeys and help improve the general environment of the area around this former scrap yard.

Our interest in the site

It is correct that we have had an interest in the site for a number of years. Acquiring a new site, especially in ‘brownfield' or inner city regeneration areas, often requires negotiations with several separate landowners in order to assemble a complete site where we can build a single store – here, we still need to purchase some land from the Council. The process of site development can also be delayed by the slow and complex planning system: as mentioned above, our application for this site has been revised.

Our plans for 24 hour trading

Ms Billington comments that we are planning to trade from the store 24 hours a day. At this stage we are not able to confirm what the opening hours would be. This is a matter to be discussed with the planning authority who will ultimately decide on trading hours.

1 http://www.eveningtimes.co.uk/mostpopular.var.1194934.mostviewed.anger_over_tesco_town_coverup.php#comments

2 http://www.skyscrapercity.com/showthread.php?t=398569