On 2 Oct 2009 at 3:17pm Mystic Mog wrote:
The Competition Commission will press ahead with tougher planning hurdles to stop supermarkets dominating in a local area - but has revised its rules. It has recommended a "competition test" to prevent firms with a strong presence in an area from building new stores or making major extensions to its outlets.
However, small extensions will be allowed in some circumstances after the watchdog reviewed its plans. Consumers would still see "significant and lasting benefits", it said.
"We expect that the competition test will have the effect we intend by helping to bring in competition where it is lacking and to stop individual retailers consolidating strong positions in local areas to the detriment of consumers," said the commission's chairman, Peter Freeman
The grocery sector was referred to the Competition Commission in May 2006
The Competition Commission will press ahead with tougher planning hurdles to stop supermarkets dominating in a local area - but has revised its rules.
It has recommended a "competition test" to prevent firms with a strong presence in an area from building new stores or making major extensions to its outlets.
However, small extensions will be allowed in some circumstances after the watchdog reviewed its plans.
Consumers would still see "significant and lasting benefits", it said.
"We expect that the competition test will have the effect we intend by helping to bring in competition where it is lacking and to stop individual retailers consolidating strong positions in local areas to the detriment of consumers," said the commission's chairman, Peter Freeman.
Extensions
The grocery sector was referred to the Competition Commission in May 2006 amid concerns major retailers were too powerful in some areas.
Tesco, the UK's biggest supermarket chain, challenged the introduction of the competition test earlier this year.
The Competition Appeals Tribunal said the test was not wrong. However, it ordered the watchdog to do more assessment of the economic impact and effectiveness of the test - resulting in the watchdog modifying the details of the requirements.
Under the proposals, retailers will now be able to make small extensions to stores - provided they are no more than 300 sq metres of groceries sales area and have not been modified in the previous five years.
The commission said it believed "that this modification will not significantly reduce the effectiveness of the test but will recognise the fact that such small extensions, if prevented by the test, would be less likely to prompt a rival development".
Rules
Under the test, the Office of Fair Trading will advise UK planning authorities on the potential impact of any new development.
The retailer will pass the test if they are new to the area, or if four or more different supermarkets are within a 10-minute drive of the proposed site.
And where there are three or fewer grocers in the area, the application will be given the green light so long as it does not then account for more than 60% of total retail space.
Tesco said that the commission had made the "wrong recommendation" and the test would act as a "brake on growth" for the industry.
"The government should think very carefully before proceeding with this recommendation and intervening aggressively in what is acknowledged to be a highly competitive industry and deterring investment in these difficult economic times," said corporate and legal affairs director Lucy Neville-Rolfe.
On 3 Oct 2009 at 3:43pm Not Spongebob wrote:
Boing
On 3 Oct 2009 at 11:14pm Toker wrote:
Spongey,whatever you are on, give me some eh...
I think you are great by the way. 
On 4 Oct 2009 at 9:09am Decent Citizen wrote:
WHAT you wish to be like spongeblob.OMG.The thought of more like he or she does not bear thinking about.
On 4 Oct 2009 at 10:22am sashimi wrote:
Mystic Mog, I read your entry twice and I'm still not quite clear. Do these rules apply to the Tesco Lewes expansion plan? Is their proposed expansion more than 300sq m? Do the new rules apply to applications that have been made. I've no objection to Tesco in principle as I shop there myself. But I find their monopoly worrying and I am deeply suspicious of the non-building of the Aldi store at a time when the supermarkets especially the down market ones all prospering. Wouldn't it be strange if Aldi sold their site with both supermarket and parking planning permission to, er, Tesco?
On 4 Oct 2009 at 3:58pm The Super K wrote:
I want a bigger Tescos!!! Shops in Lewes Suck!
On 4 Oct 2009 at 4:53pm Mystic Mog wrote:
Sashimi. The article came for the BBC (I did double paste a bit). I am also unclear as to how it applies to Lewes' Tesco. With £35m turnover their monopoly indeed worries me.
On 5 Oct 2009 at 10:15am down and out wrote:
I thought Tesco's had got planning approval? Whatever the change of policy, it can't be applied retrospectively to an approved application.
On 5 Oct 2009 at 11:50am Straightjacket wrote:
GET OVER IT...
MORE TESCO, LESS WICKLE AND ITS LIKE
On 5 Oct 2009 at 4:08pm Long Time Lewes resident wrote:
keep up with planning down and out, Tesco application has NOT been approved, it was deferred.
On 6 Oct 2009 at 11:59pm freq wrote:
i like Wickle just cant afford to shop there
On 7 Oct 2009 at 10:51am Down and Out wrote:
Well, LTLR, that might be the case, but I don't see as it makes much odds really. Once the application was registered I don't think a change of policy could be applied to the decision. It would be just like starting a trial in court and changing the law half way through. Tescos planning lawyers would crap themselves laughing if LDC tried it on.
On 7 Oct 2009 at 11:52am Brixtonbelle wrote:
Could Tesco be seen as dominating when there are two supermarkets in Lewes, ostensibly giving choice ? What is really worrying is the blanding of all high streets with the same old shops and suppliers - thats what makes Lewes unique is that a large number of independents appear to thrive. More should be encouraged through cheaper rents and more markets.
On 8 Oct 2009 at 9:06pm sid wrote:
good point brixton.. unfortunately the truth is they start and DONT thrive, rent i too high for this, ive lived here all my life and seen so many good little shops start and within a year they are gone (Bill's being the exception) cake shops, cycle shops, little ind clothes shops, you name it, sad really.