As The Grocer went to press this week, a delegation from the Federation of Wholesale Distributors was meeting OFT officials in a bid to block Sainsbury’s takeover of the Jacksons c-store chain.
The delegation comprised Musgrave UK boss Eoin McGettigan, Parfetts managing director Steve Parfett and FWD director general Alan Toft and his deputy John Murphy.
Before the meeting, Toft said
they would be pressing their case for the OFT to call a moratorium on takeover deals by the major multiples and the co-operatives.
He said: “The moratorium is a necessity to bring things to a halt and allow breathing space for a fair trading framework to be devised based on sustainability.”
He said that a similar action had been taken by the French government several years ago and it had resulted in changes to the planning system which had helped to retain a vibrant independent sector in the French market. Toft said their case would be based on the damage that was being caused to the market by the loss of independent stores.
He explained: “The loss of independent stores means that there is a loss of volume for wholesalers.
“The loss of volume leads to price increases for the wholesalers and this in turn leads to higher prices for independent retailers.
“This puts them at a greater disadvantage to the major multiples and consequently a cycle of decline sets in.”
He also argued that the loss of independent stores, many run by families or individual entrepreneurs, was against the interests of consumers.
“These stores bring diversity and choice to communities and many of them also have an important social role to play.”
>>p32 Consolidation and the OFT
The delegation comprised Musgrave UK boss Eoin McGettigan, Parfetts managing director Steve Parfett and FWD director general Alan Toft and his deputy John Murphy.
Before the meeting, Toft said
they would be pressing their case for the OFT to call a moratorium on takeover deals by the major multiples and the co-operatives.
He said: “The moratorium is a necessity to bring things to a halt and allow breathing space for a fair trading framework to be devised based on sustainability.”
He said that a similar action had been taken by the French government several years ago and it had resulted in changes to the planning system which had helped to retain a vibrant independent sector in the French market. Toft said their case would be based on the damage that was being caused to the market by the loss of independent stores.
He explained: “The loss of independent stores means that there is a loss of volume for wholesalers.
“The loss of volume leads to price increases for the wholesalers and this in turn leads to higher prices for independent retailers.
“This puts them at a greater disadvantage to the major multiples and consequently a cycle of decline sets in.”
He also argued that the loss of independent stores, many run by families or individual entrepreneurs, was against the interests of consumers.
“These stores bring diversity and choice to communities and many of them also have an important social role to play.”
>>p32 Consolidation and the OFT
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