Our response to recent media coverage
Some recent reports have been misleading about the extent of Tesco's new floorspace. Tesco's new space, is just one element of the many millions of square feet of space being opened by all types of retailers in town centres and retail parks. In a 2005 survey of all retail-led pipeline development, the British Council of Shopping Centres, identified 50.6 million square feet of retail space to be developed over the next 10 years. Even when set against Verdict's own previously published figures of net retail space growth Tesco does not constitute anywhere near the half claimed.
Tesco has been successful in opening new space because we have a flexible, multi format approach to new store development, and often invest in deprived areas that our competitors have chosen to ignore. The UK planning system provides a level playing field, where all retailers face similar challenges, but also the same opportunities to build and extend stores. Asda and the discounters are each opening a significant amount of new space from single formats. Both Morrisons and Sainsburys have stated that new space has not been a priority for their businesses but we are hearing they are now putting the effort that was lacking back into it.
Lucy Neville-Rolfe, Executive Director at Tesco said:
"I would be surprised if the Competition Commission wanted to favour those who had called the market wrong in the past and hurt consumers by penalising competitive success."
"Tesco's land pipeline reflects our flexible and innovative approach which goes with the grain of government policy. We build stores of different sizes, often in deprived areas and on contaminated land others won't touch and parcel together sites so we can invest in town centres, always taking risks on planning approval."
"This approach is one our competitors-who seem to be behind this speculation- could have taken but chose not to!"
Key facts at a glance
Job creation
Our Regeneration Partnerships have created almost 4,000 jobs, including 2,200 among the long-term unemployed and disabled.
New stores
The process of acquiring land, getting planning permission and building the store has become much more complex, risky and time consuming.
