Menu
02/09/2005
Somerfield ordered to sell 12 stores
Supermarket group Somerfield has been ordered to sell 12 stores, following an investigation by the Competition Commission (CC).
The investigation into Somerfield’s purchase of 115 stores from Morrisons last year was prompted by fears of a “substantial lessening” of competition in 12 local grocery retail markets in the UK.
The CC had initially identified 14 sites where there were competition concerns. However, the Commission said that, as a result of new evidence from Somerfield, it was now satisfied that the acquisition of stores in Bedlington and Paisley would not be anti-competitive.
Under the ruling, Somerfield will have to sell stores acquired from Morrisons in Filey, Middlesborough, Linthorpe, Newark, Pocklington, Poole Bearwood, South Shields and Whitburn in Scotland.
However, in Johnstone, Peebles and Yarm, Somerfield can choose to either sell the acquired store or an existing Somerfield branch.
The supermarket chain was also ordered to sell stores that were closed in Kelso and Littlehampton, although it can continue to operate the acquired store.
Commenting on the decision, Christopher Clarke, Chairman of the inquiry, said: “Following responses to our provisional findings, we have now concluded that Somerfield’s acquisition of 12 of the stores is expected to lead to a significant reduction in competition in their local markets.
“It is important for customers that competition in these local markets is restored and so Somerfield must now sell the specified stores to grocery retailers who are able to compete effectively on price, quality, range and service in these areas.”
(KMcA/SP)
The investigation into Somerfield’s purchase of 115 stores from Morrisons last year was prompted by fears of a “substantial lessening” of competition in 12 local grocery retail markets in the UK.
The CC had initially identified 14 sites where there were competition concerns. However, the Commission said that, as a result of new evidence from Somerfield, it was now satisfied that the acquisition of stores in Bedlington and Paisley would not be anti-competitive.
Under the ruling, Somerfield will have to sell stores acquired from Morrisons in Filey, Middlesborough, Linthorpe, Newark, Pocklington, Poole Bearwood, South Shields and Whitburn in Scotland.
However, in Johnstone, Peebles and Yarm, Somerfield can choose to either sell the acquired store or an existing Somerfield branch.
The supermarket chain was also ordered to sell stores that were closed in Kelso and Littlehampton, although it can continue to operate the acquired store.
Commenting on the decision, Christopher Clarke, Chairman of the inquiry, said: “Following responses to our provisional findings, we have now concluded that Somerfield’s acquisition of 12 of the stores is expected to lead to a significant reduction in competition in their local markets.
“It is important for customers that competition in these local markets is restored and so Somerfield must now sell the specified stores to grocery retailers who are able to compete effectively on price, quality, range and service in these areas.”
(KMcA/SP)
Related UK National News Stories
Click here for the latest headlines.
16 April 2010
£225m Tobacco Price Fixing Fine
Two tobacco manufacturers and ten retailers have been fined a total of £225m by the Office of Fair Trading (OFT) for engaging in unlawful practices in relation to retail prices.
£225m Tobacco Price Fixing Fine
Two tobacco manufacturers and ten retailers have been fined a total of £225m by the Office of Fair Trading (OFT) for engaging in unlawful practices in relation to retail prices.
09 September 2015
Morrisons To Sell Convenience Stores
Morrisons has agreed to sells its 140 M local convenience stores for approximately £25 million. It is understood a team led by retail entrepreneur Mike Greene and backed by Greybull Capital LLP will purchase the stores. The supermarket chain will retain five M local shops and expects to incur a loss on disposal of around £30m.
Morrisons To Sell Convenience Stores
Morrisons has agreed to sells its 140 M local convenience stores for approximately £25 million. It is understood a team led by retail entrepreneur Mike Greene and backed by Greybull Capital LLP will purchase the stores. The supermarket chain will retain five M local shops and expects to incur a loss on disposal of around £30m.
18 September 2008
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
02 April 2014
M&S To Open 250 Food Stores
Today at Marks & Spencer's Investor Seminar in Paris, the retailer unveiled plans for further international expansion with a focus on opening 250 new stores, growing its Food business and increasing its franchise operations.
M&S To Open 250 Food Stores
Today at Marks & Spencer's Investor Seminar in Paris, the retailer unveiled plans for further international expansion with a focus on opening 250 new stores, growing its Food business and increasing its franchise operations.
05 October 2012
Doncaster Tesco Drivers To Strike For 48 hours
More than 180 drivers at the Tesco distribution centre in Doncaster will strike for 48 hours next week, disrupting supplies to Tesco stores across the region. The strike will start at 00:05 on Tuesday 9 October and will end at 00:05 on Thursday 11 October and will cause havoc in supplying the Tesco stores in the Yorkshire and Humber region.
Doncaster Tesco Drivers To Strike For 48 hours
More than 180 drivers at the Tesco distribution centre in Doncaster will strike for 48 hours next week, disrupting supplies to Tesco stores across the region. The strike will start at 00:05 on Tuesday 9 October and will end at 00:05 on Thursday 11 October and will cause havoc in supplying the Tesco stores in the Yorkshire and Humber region.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
