Delhi, Delhi India (PressExposure) March 21, 2007 -- UKâs Association of Convenience Stores, or ACS, has charged supermarkets of pressurizing small players to close and reduce choices for customers. The allegation comes after the Competition Commission produced its initial report on the effect of supermarkets on competition and stated it is concerned over the influence of supermarket at ground levels.
ACS reports that 2,000 independent C-stores (convenience stores) closed during the twelve months to June 2006 as supermarkets creep in the market offering a broad range of products at one place. Over 9,600 independent c-stores, most of them family run businesses, have closed their shutters since 2000.
Most of the criticism has been pointed at the market leader Tesco accounting for 31.5% share of the total market, more than double of its closest rival, Asda. Presently, Tesco takes away Â£1 in every Â£8 of consumer spending in UK.
The Competition Commissionâs interim report expresses concerns that âthe position of the major grocery retailers, individually and collectively, is so strong that it is distorting competition to an unacceptable degreeâ.
James Lowman, Chief Executive, ACS, stated in news published by Politics.co.uk, âWe strongly believe that practices such as below cost selling and price flexing are targeted in a predatory manner and have the effect of closing smaller competitors".
He advised the Commission to monitor the competition and choices across the whole grocery market and not just the big guns of the market. He adds, âReal choice relies on a variety of local outlets, not just promoting competition between the large superstores".
Lowman adds, âBuilding more superstores would undermine true competition and reduce choice and diversity, especially in rural areas and market townsâ.
âConvenience Stores Market â Worldwide (2005-2008)â, a report by RNCOS, says C-stores are generally open for long hours during the day and for seven days a week. Due to their convenient location, the prices of products are slightly higher. This can pose a problem for C-stores in locations where discount stores (sales outlet that offers products at discounted prices, e.g. UK Supermarkets) are successfully employing aggressive marketing strategies to attract more and more customers.
The research report also highlights other major market factors, market value and trends, and total number of C-stores operating in UK. Also, report furnishes the detailed information on global C-stores market with statistical data.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.
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