Should supermarket chains be regulated for their dominance in the UK grocery market?
It is a considered notion that if a company of any form appears to be abusing its market power and as a result possibly causing harm to consumers, it should be investigated and be under examination as to whether there is strong enough evidence to take action against the company. Authorities such as the Competition Commission can penalise or regulate a business’ behaviour in order to ensure a competitive market is maintained.
The leading supermarkets commonly known as the ‘big 4’, Tesco, Sainsbury, Asda and Morrisons are all currently under investigation for their domination in the UK grocery market. In fact they have all been investigated three times in the last seven years. These investigations have been prompted by strong concern over whether consumers genuinely have the ultimate power in the retail sector. Statistically it is clear that supermarkets have widespread power throughout the country with them holding a large proportion of the grocery market in many towns and cities. Bearing in mind that 25% is enough for the commission to consider starting an inquiry against a company, Tesco alone has a 27% overall share in the UK.
The constant threat of unfair competition from supermarkets, mean that small shops, once an essential part of the fabric of rural and urban life, are disappearing in their thousands each year. It is estimated that in the last ten years, the UK has lost a large percentage of some of its independent stores such as corner shops, grocers, high street banks, post offices and pubs, amounting to a cumulative loss of over 30,000 local economic outlets. Out of town supermarkets have also had an impact on rural areas because they are caref ...