A top supermarket boss has urged the regulators to rethink their “one-legged” approach to competition policy.
Justin King, chief executive of Sainsbury, said space was a finite resource for retailers irrespective of whether it was acquired or came via building new stores.
But he said: “There’s a growing realisation the authorities have a one-legged view of competition in this industry. They believe it is their remit only to look at acquisitions.”
Instead, King suggested
they should take a closer look at planning to ensure competition was encouraged - particularly in communities over-served by one retailer.
King pointed to Bicester
as an example of one so-called ‘Tesco town’ where Sainsbury is hoping to establish a foothold as part of a redevelopment of the centre.
King acknowledged it was tougher than ever to get sites but said there were plenty of towns with ambitious redevelopment plans, and Sainsbury was trying to become the supermarket of choice for those communities.
King said: “We have to make a very strong and compelling case to consumers and to councillors that we are the best option. We think we’re better neighbours than competitors.”
In fact, Sainsbury could well have snapped up the last new-build supermarket site likely to receive planning permission in inner London, according to analysts CACI. The proposed development in Paddington would include a 50,000 sq ft supermarket along with flats, restaurants, offices, leisure facilities and a community hall.
In addition, Sainsbury is working on a mixed-use scheme in Milton Keynes, which would include a 100,000 sq ft store.
But King also urged planners and the government to rethink “counter-intuitive” initiatives such as congestion charging and restrictions on night deliveries that made it less attractive to develop brownfield sites.
His comments came in a wide-ranging interview with The Grocer this week.
During the interview, King laughed off claims by Asda’s Andy Bond that the industry was tending towards sameness. He said: “We do not share his view - although we do accept it as a criticism of his own business.”
King also touched on supplier relationships: “Ours will always be tough and commercial. Our responsibility is to demonstrate it is worth their while putting themselves out for us. And in areas where we are strong, such as fresh and food innovation, why would you want to go anywhere else?”
Julian Hunt & Rachel Barnes
>>p32 Getting back to basics
Justin King, chief executive of Sainsbury, said space was a finite resource for retailers irrespective of whether it was acquired or came via building new stores.
But he said: “There’s a growing realisation the authorities have a one-legged view of competition in this industry. They believe it is their remit only to look at acquisitions.”
Instead, King suggested
they should take a closer look at planning to ensure competition was encouraged - particularly in communities over-served by one retailer.
King pointed to Bicester
as an example of one so-called ‘Tesco town’ where Sainsbury is hoping to establish a foothold as part of a redevelopment of the centre.
King acknowledged it was tougher than ever to get sites but said there were plenty of towns with ambitious redevelopment plans, and Sainsbury was trying to become the supermarket of choice for those communities.
King said: “We have to make a very strong and compelling case to consumers and to councillors that we are the best option. We think we’re better neighbours than competitors.”
In fact, Sainsbury could well have snapped up the last new-build supermarket site likely to receive planning permission in inner London, according to analysts CACI. The proposed development in Paddington would include a 50,000 sq ft supermarket along with flats, restaurants, offices, leisure facilities and a community hall.
In addition, Sainsbury is working on a mixed-use scheme in Milton Keynes, which would include a 100,000 sq ft store.
But King also urged planners and the government to rethink “counter-intuitive” initiatives such as congestion charging and restrictions on night deliveries that made it less attractive to develop brownfield sites.
His comments came in a wide-ranging interview with The Grocer this week.
During the interview, King laughed off claims by Asda’s Andy Bond that the industry was tending towards sameness. He said: “We do not share his view - although we do accept it as a criticism of his own business.”
King also touched on supplier relationships: “Ours will always be tough and commercial. Our responsibility is to demonstrate it is worth their while putting themselves out for us. And in areas where we are strong, such as fresh and food innovation, why would you want to go anywhere else?”
Julian Hunt & Rachel Barnes
>>p32 Getting back to basics
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