Wednesday, April 30, 2008
New restrictions for expanding supermarkets in UK?
The Competition Commission produced a report today proposing changes to the planning permission system for Supermarkets and the setting up of an Ombudsman to resolve disputes between retailers and suppliers. The Office of Fair Trading will have to be consulted for all planning applications to build larger supermarkets or extend existing ones. They state that this should make it harder for one chain to dominate an area.
However, there are no proposals to address the concerns of independent retailers that are being squeezed out by the larger chains. The report concluded that smaller shops are "not in terminal decline."
Friends of the Earth state that the regulator had missed the opportunity to support local shops. "The commission has done nothing to recreate vibrant shopping communities for local people", said Sandra Bell, supermarkets campaigner from Friends of the Earth.
The Major chains will undoubtedly claim that the costs of setting this up will fall on the consumer. They will always continue to make their profits though.
source: BBC News
Sunday, April 20, 2008
Tesco sue Guardian
Tesco are now suing the Guardian newspaper, for libel and malicious falsehood.
Tesco claims that the articles alleged it was using offshore banking to avoid paying £1bn in corporation tax, although it admits to using it to avoid paying £50m plus of stamp duty.
The Guardian has reacted by accusing the supermarket giant of using "bullying" tactics designed to stifle legitimate debate. Caroline McCall, chief executive of the Guardian Media Group, has resigned from her 3 year post as a non-executive director of Tesco.
Read Guardian article here , and Financial Times article here.
Thursday, April 17, 2008
Tesco takes on Apple
Not content with profits of more than £2.8 Billion in 2007, supermarket giant Tesco is taking on Apple with the launch of 'Tesco Digital' next month. Offering more than 3 million tracks, 1.6 million will be compatible with mp3 players immediately and all compatible with iPods by the end of the year.
Although starting out with music downloads, the site plans to offer tv, films and games soon. As well as food and clothes, the supermarket giant now sells furniture, mobile phones, credit cards, petrol, loans and mortgages.
Taking over the world?
Sunday, April 13, 2008
Another one bites the dust...
Steve Brewer, manager of Round Sounds in Sussex, left this message on his shop front last week. He claims that after 16 years in business, he can no longer compete with the supermarkets. "Supermarket pricing is so competitive it makes life very difficult for smaller traders." Tesco's David Nieberg denies this stating "the main competition for independent music shops is the internet."
Steve should be careful what he says about Tesco. They are currently suing 2 individuals in Thailand for speaking out against the negative effect the supermarket giant are having on the local economy. Read an article here. Email Tesco CEO Terry Leahy with your comments here.