UK NEWS
PROBE OVER 'SUPERMARKET THREATS'
Asda has to produce millions of emails
Two of Britain's biggest supermarkets have been ordered to hand over millions of emails and letters in an investigation into their methods, said the Competition Commission.
The revelation came as the Sunday Telegraph claimed Asda and Tesco were being investigated over accusations that they threatened to no longer use suppliers if they did not drop prices.
A spokesman for the commission said legal notices, known as Section 109s, had been sent to the chains. He added the notices "allow them to investigate more thoroughly" and would not be issued "without reason".
He said: "We are being thorough and using our powers where we can."
But the supermarkets claimed they had nothing to hide. A spokeswoman for Leeds-based Asda said: "We adhere to the code of conduct between suppliers and supermarkets.
"During the period which the commission want to see our correspondence there were about 11 million emails to suppliers. But we are happy to help and we have got absolutely nothing to hide."
A spokeswoman for Tesco said: "The Competition Commission has issued Tesco and other parties with Section 109 notices in order to gather information quickly that might normally be withheld on confidentiality grounds.
"We have nothing to hide and we are doing what we can to assist the commission with this enormous data request. We expect the commission to conclude that at Tesco relationships with suppliers are professional and act to the ultimate benefit of the customer."
The watchdog is investigating the practices of the four big chains -- Tesco, Asda, Sainsbury's and Morrisons -- as part of a two-year inquiry into their dominance of the national market.
The commission launched the investigation in May 2006 and it is not clear when a conclusion will be published.
"“COLLECTIVE RETAIL MONOPOLY BY STEALTH”
19.08.07, 12:58pm
Its more akin to insider trading than competent business practice!
The problem for the consumer is that the super grocers hold serious monopolies in particular patches. Genuine customer choice, as you describe, could only exist with a comprehensive representation of all the supermarkets on that patch.
I live in an area with the German grocer lidl at one end of the market and M & S at the other with Tesco Asda and Sainsbury’s in he middle.....and what do know there are ferocious price adjustments on a lot of their products in order to accommodate the competitiveness the area presents. The most obvious example being the price of petrol.
An area lacking this competitiveness….obviates the need for the supermarket to adjust its prices…..that’s why it’s unfair!
Ref: “Collective retail monopoly by stealth” August 12, 2007 by TicToc
I say that these supermarkets use silent electronic monitoring, countering the need to get together in order to regulate prices and output, cartel style...... but that is exactly what they do….and that is exactly what this article is about….
Posted by: TicToc Report Comment
NO ONE SAID IT WAS IN THE NAME OF THE CONSUMER!
19.08.07, 11:27am
It is competent business practice.
They must offer lower prices to attract customers and they must make profits to remain in business.
Why should companies be forced to not compete in an open market because they are too successful.
If they did not have sufficient stock they would not have customers, it is a business not a charity and they are entitled to compete!
Posted by: The_Way_I_See_It Report Comment
THE DAYS OF GREED
19.08.07, 11:16am
It is nothing less than a wild fantasy to believe that major supermarkets are trying to knock down prices from their suppliers in order to give a better deal to consumers. Truth is that its all done in the name of greed and greater profit, with greater focus being attached to the shareholder.
Posted by: English_Patriot Report Comment
R35 I APOLOGISE HUMBLY SIR !
19.08.07, 11:07am
For having a modicum of common sense and an inability to suffer fools quietly!
Posted by: The_Way_I_See_It Report Comment
SUPERMARKET THREATS
19.08.07, 9:37am
I'm sick and tired of "the way I see it" being right all the time. Why even yesterday he espoused the radical belief that criminals be sent to jail. Wow what a radical. Now he objects to the government controlling everything. What next?
Posted by: r35 Report Comment
SO NOW WE HAVE NO CHOICE!
19.08.07, 8:37am
What utter rubbish every consumer in the land chooses to shop where they like, if a stores prices are too high we go elsewhere.
Instead of trying to punish organisations for competence maybe the government could take a leaf out of there books.
The NHS for example could use its buying power to negotiate better prices for medical supplies acrross the whole UK.
Every business in the land has a duty to find the best and cheapest suppliers and part of that process is to play off one supplier against another!
MORON'S wasting taxpayer's money to prevent good business practice from disclosing their own inadequacies!
Posted by: The_Way_I_See_It Report Comment
To view all 'Have Your Say' comments, click this button...