Sainsbury’s acquisition of the Jacksons c-store chain has been cleared by the OFT, despite strong opposition from the independent sector.
Delegations from the Association of Convenience Stores and the Federation of Wholesale Distributors met OFT officials to urge them to block the deal and launch a review of the grocery market.
They feared independent retailers would be driven out of business by multiples such as Tesco and Sainsbury moving in to the neighbourhood sector following takeovers of c-store chains including T& S Stores, Adminstore and Bells.
FWD director general Alan Toft said: “Wholesalers will be bitterly disappointed by the OFT’s decision. However, the real blame lies with the government
and its basic failure to understand what is going on in the grocery market.”
David Rae, ACS chief executive, said: “We made a strong case to the OFT about the impact of this acquisition. Consolidation like this threatens to deprive communities of independent local shops.
“This latest decision hastens the need for a full investigation of UK grocery.”
His comments came ahead of a meeting between Gerry Sutcliffe, competition minister, and independent retailers to discuss market consolidation as The Grocer went to press.
Attended by Leo Gillen, Gillens MD, Raj Chandegra, DJ Foodfare boss and James Lowman from the Association of Convenience Stores, the meeting is the latest in a series of talks hosted by Sutcliffe to garner views on market consolidation.
It follows a poll of 1,019 consumers by Populus that revealed that 68% believed the incursion of the multiples into the high streets and suburbs damaged the fabric of local communities. More than 60% felt superstore ownership of small stores resulted in a less friendly and personal service.
John Wood & Elaine Watson
Delegations from the Association of Convenience Stores and the Federation of Wholesale Distributors met OFT officials to urge them to block the deal and launch a review of the grocery market.
They feared independent retailers would be driven out of business by multiples such as Tesco and Sainsbury moving in to the neighbourhood sector following takeovers of c-store chains including T& S Stores, Adminstore and Bells.
FWD director general Alan Toft said: “Wholesalers will be bitterly disappointed by the OFT’s decision. However, the real blame lies with the government
and its basic failure to understand what is going on in the grocery market.”
David Rae, ACS chief executive, said: “We made a strong case to the OFT about the impact of this acquisition. Consolidation like this threatens to deprive communities of independent local shops.
“This latest decision hastens the need for a full investigation of UK grocery.”
His comments came ahead of a meeting between Gerry Sutcliffe, competition minister, and independent retailers to discuss market consolidation as The Grocer went to press.
Attended by Leo Gillen, Gillens MD, Raj Chandegra, DJ Foodfare boss and James Lowman from the Association of Convenience Stores, the meeting is the latest in a series of talks hosted by Sutcliffe to garner views on market consolidation.
It follows a poll of 1,019 consumers by Populus that revealed that 68% believed the incursion of the multiples into the high streets and suburbs damaged the fabric of local communities. More than 60% felt superstore ownership of small stores resulted in a less friendly and personal service.
John Wood & Elaine Watson
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