The anti-Tesco lobbying may have been intensifying in recent weeks - but suppliers believe it would be wrong for the competition authorities or government to launch a specific inquiry into the market position of Britain’s top retailer.
Many executives on our suppliers reader panel believe Tesco’s success is because it’s doing a better job than rivals.
Just over half thought there was little point in the OFT initiating another inquiry into the food retail sector.
The supermarkets code of practice was given a big thumbs down by our suppliers, with most saying it was unworkable in its current format.
And they had similar reservations about the concept of a supermarket ombudsman - an idea already ruled out by the government.
Almost two-thirds of suppliers said relationships with customers were about the same as this time last year. However, “market conditions are tougher and this causes increasing strains and pressure”, said one supplier.
Another pointed out that three of the big four were struggling, while Tesco, he said, was adding to the pressure because it now has “Farmfoods, Lidl, Netto and Aldi pricing in its sights - despite the fact these retailers have very different business models”.
A majority of suppliers liked the idea of the government introducing a ban on below-cost selling - even though many said it would be difficult to enforce.
Tesco has faced further public demonstrations in Thailand over the development of a new Tesco Lotus store. Hundreds of protesters blocked a road in Mae Sai, according to local papers, before setting light to a coffin with “foreign retailer” written on the side. Building is due to begin in November (The Grocer, p16, June 18).

Premier Foods is remaining tight-lipped over speculation that it is planning to sell its Typhoo tea brand for £100m. Premier is reported to have hired Icelandic investment bank Islandsbanki to handle the sale. The company has also been linked with an interest in Unilever’s Marmite.

Booker chief executive Hans Kristian Hustad gave a morale-boosting speech to 500 depot staff.The event in Birmingham was attended by depot heads, support centre and sales staff. “It was very positive. At last someone has listened to us,” said one.

Millennium, the specialist marketing agency for the over 50s, has revealed that Tesco is the most popular multiple for older consumers. It said supermarkets could generate more sales simply by providing smaller packs, better labelling, and unpacking home deliveries.

SPAR International is celebrating the 10th anniversary of its sponsorship of European Athletics. SPAR is the title sponsor of the European cup, and the European cross country championships.

Taittinger, one of few remaining independent Champagne houses, has put itself up for sale. The group has appointed BNP Paribas and Rothschild banks to explore potential investors.
trouble in thai
taking their leaf?
booker boost
golden oldie
spurred on by spar
bubble burst

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