Tesco responds to anti-competitive claims

2 April 2007
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03 April 2007 | Paul Snell

Tesco has hit out at suppliers and other retailers, which it says are trying to blame the company for their own poor performance.

Responding to concerns raised by the Competition Commission's (CC) Emerging Thinking report into competition in the grocery sector (Web news, 24 January), the retailer said it was the victim of its own success.

"Less efficient retailers and suppliers sometimes struggle and seek to blame those that are more successful but, as the CC's own guidelines recognise, effective competition 'will often be characterised by uncertainty, turbulence and change'," the company said.

The retailer also rebutted claims the huge buying power that supermarkets wield was damaging the supply chain. "We believe the evidence will show there is normal, healthy competition in all sectors of the market," the firm said. "It has also shown that the grocery chain remains viable and is continuing to invest and innovate."

Tesco added that reducing costs in the supply chain was about "skill and attention to detail", and that all of its competitors could benefit from the same economies of scale.

SMapr2007

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