Waitrose has admitted to a total of seven breaches of the ‘Groceries Market Investigation (Controlled Land) Order’ between 2010 and 2019 after the Competition & Markets Authority (CMA) took a closer look at how supermarkets were competing.
The Order was brought in 10 years ago by the competition regulator to stop supermarkets from using restrictive terms to prevent rivals from opening stores nearby. The aim was to ensure that grocery shoppers have more choice and access to cheaper prices.
To comply with the Order, the CMA said Waitrose has agreed to remove restrictions from land agreements which prevented rivals from setting up new stores. The breaches relate to the following locations where Waitrose operates existing stores: Bromsgrove, Rustington, Swindon, Daventry, Chester, Notting Hill Gate, and Market Harborough.
Adam Land, Senior Director of Remedies at the CMA, commented: “It’s disappointing that Waitrose has acted against the interests of shoppers, despite these rules having been in place for over 10 years.
“Families across the UK are facing the rising cost of living. Preventing other supermarkets from opening new stores could stop people saving on their weekly shop.
“Waitrose is now putting this right so that everyone gets a fair deal. We will continue to take action when our rules are broken, and we have asked all supermarkets to show us their land deals comply with the Order.”
Today’s announcement follows similar changes from Tesco in 2020 after the CMA found it had breached the same rules 23 times.
NAM implications:
- This step is easier than it seems…
- i.e. the grocery retail sector is over-spaced in retail terms…
- …and retailers will be unloading parts of existing estates.
- And land banks even more so…
