Elaine Watson
Big Food Group boss Bill Grimsey has joined forces with big guns in the c-store sector to urge regulators to block the big three supermarkets from bidding for Safeway.
He said. "If there has to be a trade buyer, it should be Morrisons, and if it goes to a non-trade buyer, there should be restrictions so someone can't just come in and asset strip."
His comments came as the Competition Commission said the terms of reference in its 2000 inquiry, which distinguished between the one-stop and top-up shopping markets, may no longer be appropriate.
In a statement outlining the issues relevant to an assessment of the proposed bids, the Commission said it would also consider whether further consolidation would increase pressure on suppliers' margins, and whether this would translate into higher cost prices to smaller retail customers (see panel).
Grimsey told The Grocer he had been "horrified" when regulators had waved through Tesco's acquisition of T&S, as the boundaries between the small and large store sector had become increasingly blurred.
The logic applied by the Commission to the Tesco/T&S deal that the one-stop and top-up shopping markets were separate was "absolute nonsense," said Grimsey. "If you plant a 25,000 sqft superstore on the edge of a town, all local stores are going to take a knock whatever size.
"The superstores deserted the town centres 10 years ago, and now they have come back in on the premise that small stores are a separate market. It's a joke."
Spar UK MD Jerry Marwood agreed: "Given all of the multiples except Asda and Morrisons have a presence in convenience, the idea you can simply divorce the multiple and c-store markets is nonsense."
All of the bids should be blocked, added Marwood. However, the march for consolidation would not stop, and the onus was on the regulators to define what would happen next. "What is needed is not just a view of what's going on now, but of what they want the shape of retailing to look like in future."
ACS public affairs and commercial manager James Lowman said he was "delighted" the Commission had taken on board the concerns of small retailers and the supplier community. "All the bidders are either already involved in c-stores or might be in future."
Nisa-Today's central distribution MD John Sharpe said regulators needed to consider all of the players in a given market in any analysis of local competition.
The Co-operative Group was keeping its powder dry ahead of a closed hearing with the Competition Commission on Tuesday. However, a spokesman said any moves to better understand the impact of further consolidation on suppliers and small stores were very welcome.
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Big Food Group boss Bill Grimsey has joined forces with big guns in the c-store sector to urge regulators to block the big three supermarkets from bidding for Safeway.
He said. "If there has to be a trade buyer, it should be Morrisons, and if it goes to a non-trade buyer, there should be restrictions so someone can't just come in and asset strip."
His comments came as the Competition Commission said the terms of reference in its 2000 inquiry, which distinguished between the one-stop and top-up shopping markets, may no longer be appropriate.
In a statement outlining the issues relevant to an assessment of the proposed bids, the Commission said it would also consider whether further consolidation would increase pressure on suppliers' margins, and whether this would translate into higher cost prices to smaller retail customers (see panel).
Grimsey told The Grocer he had been "horrified" when regulators had waved through Tesco's acquisition of T&S, as the boundaries between the small and large store sector had become increasingly blurred.
The logic applied by the Commission to the Tesco/T&S deal that the one-stop and top-up shopping markets were separate was "absolute nonsense," said Grimsey. "If you plant a 25,000 sqft superstore on the edge of a town, all local stores are going to take a knock whatever size.
"The superstores deserted the town centres 10 years ago, and now they have come back in on the premise that small stores are a separate market. It's a joke."
Spar UK MD Jerry Marwood agreed: "Given all of the multiples except Asda and Morrisons have a presence in convenience, the idea you can simply divorce the multiple and c-store markets is nonsense."
All of the bids should be blocked, added Marwood. However, the march for consolidation would not stop, and the onus was on the regulators to define what would happen next. "What is needed is not just a view of what's going on now, but of what they want the shape of retailing to look like in future."
ACS public affairs and commercial manager James Lowman said he was "delighted" the Commission had taken on board the concerns of small retailers and the supplier community. "All the bidders are either already involved in c-stores or might be in future."
Nisa-Today's central distribution MD John Sharpe said regulators needed to consider all of the players in a given market in any analysis of local competition.
The Co-operative Group was keeping its powder dry ahead of a closed hearing with the Competition Commission on Tuesday. However, a spokesman said any moves to better understand the impact of further consolidation on suppliers and small stores were very welcome.
{{NEWS }}
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