1st Sep 10
Tesco accused of pushing through expansion projects to increase monopoly power
by Katie Naylor
Tesco, one of the leading UK supermarket retailers, has been accused by its critics of pushing through expansion products in attempts to rapidly start and complete construction of new stores. The critics argue that the retail giant is in a rush to complete construction as the Competition Commission initiatives, which would put more stringent controls on expansion projects, are soon to be implemented.
The current Competition Commission initiative involves what is referred to as a competition test, or a set of rules which would prevent Tesco from opening large supermarkets in over 300 communities in which it already has a significant presence, although these tests have not yet been ratified by the Government. Those opposed to the increased construction movements by Tesco, including Tescopoly, allege that the firm has started new projects at an alarming rate, with 47 new build, extension, or refurbishment projects started since the beginning of the year, at a total cost of over £300 million.
According to Labour MP Barry Sheerman, an advocate of the new Competition Committee legislation, many towns around the UK have been blighted by the Tesco monopoly. A spokesperson for Tescopoly echoed this sentiment, and added that Tesco has been using its muscle in order to get the development that it wants so it can increase its monopoly power over the industry.
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1 Comment
"Tesco is giving consumer goods at the lowest possible price and drives inefficiency out of the system. In the end it is for the greater good. There would be more waste without Tesco."
Added by Barry Scott on 1st Sep 10