The supply of groceries in the UK market investigation

Covering the investigation into the supply of groceries by retailers in the UK, this report presents the findings of The Competition Commission's inquiry.

The Commission found that several grocery retailers have strong positions in a number of local markets.

The transfer of excessive risk and unexpected costs by grocery retailers to their suppliers - through various supply chain practices - will have an adverse effect on investment and innovation in the supply chain, and ultimately on consumers, if unchecked.The report goes on to outline the steps to address the problems that were identified, including recommending to Government and the devolved administrations that a competition test be applied, as part of the planning process, to proposed new stores (and proposed extensions to existing stores).The Commission will be tightening the provisions of the Supermarkets Code of Practice and broadening its application such that more grocery retailers will be required to abide by its terms.

The Commission will also be seeking legally binding commitments from grocery retailers to establish an Ombudsman to oversee the revised Code.The contents of Volume 1 of the Summary and Report includes: Summary and Findings; Introduction; Context for the Investigation; Grocery retailing in the UK; Market definition; Competition between grocery retailers in the supply of groceries; Concentration in local markets for grocery retailing; Barriers to entry or expansion in grocery retailing; Coordination between grocery retailers; Competition issues in the grocery supply chain; Findings and features; and Remedies. This is a two-volume publication: Volume 1 presents the Summary and Report; and Volume 2 presents the Appendices.