Tougher 'Tesco-town' rules due
The Competition Commission is expected this week to unveil tough planning restrictions intended to stem the rising tide of so-called Tesco Towns.
It is expected to reveal measures intended to stop a single supermarket dominating an area.
The decision will be closely watched by Tesco, led by chief executive Sir Terry Leahy, and its main rivals — Asda, Sainsbury’s and Morrisons. In provisional findings published last October, the watchdog said some aspects of the market were uncompetitive.
Among plans being considered are a “competition test” in which planners will consider the number of retailers competing in an area. Other steps would force authorities to consider a supermarket group’s local market share before granting it planning permission.
However, commissioner Peter Freeman is unlikely to recommend forced sales of stores.
Other ideas include an ombudsman to adjudicate between supermarkets and their suppliers.