From the very outset of its current inquiry into the UK grocery market, back in May 2006, the Competition Commission announced that it would try and complete the task in double quick time. The inquiry chairman, Peter Freeman, said on day one, "The law permits us two years to complete our investigation, but we aim to finish in substantially less time than that." This desire to finish early kept cropping up as the inquiry progressed through its first year, and each time the Federation of Wholesale Distributors said: "No, please take your time - take as long as you need to get it right."
Well, events subsequently justified our point as the CC came to discover that it needed more and more time to process all the information it was receiving. First, its ambitious target of October last year was extended, and since then the deadline has been moved back a number of times. Perhaps though, the latest delay is a positive signal that wholesalers and their independent retailer customers may yet reap some benefit from the investigation.
Last month the CC said it now expects to produce its final report in April instead of March. This is a welcome development because there are still outstanding issues the CC has to get to grips with. Prominent among these is its provisional finding, based on inappropriate data, that convenience store numbers may be on the increase instead of the widely held industry belief that they are in significant decline.
Just before Christmas, FWD representatives took part in an Association of Convenience Stores (ACS) hearing before the CC when this finding was challenged and we undertook to submit further evidence.
This, in the form of new figures has now been sent to the inquiry team and it clearly shows a steady decline in numbers of convenience stores over the past eight years. FWD believes this is a pivotal matter because it feeds into several other important aspects of the CC's initial conclusions. Therefore, we welcome the latest delay that gives the CC more time to consider this and other concerns we raised at the latest hearing.
The grocery market inquiry will feature in an exciting line-up of presentations at this year's FWD annual conference on March 31 and April 1 at the Forest of Arden Hotel in Warwickshire. This is the major showcase for the world of wholesaling and includes papers from key industry leaders, so please make sure to book your place early (see pages 22-23).
Will Government proposals to ban the display of tobacco in retail premises damage the wholesale sector?
- 27 November, 2008
FWD Annual Dinner & Gold Medal Awards
