Numerous published reports say that Mark Price, managing director of Waitrose in the UK, has called on Britain’s Competition Commission to slow Tesco’s growth and dominance there, let the nation become “Tescoland.”
Price accuses Tesco of using its marketing and financial muscle to capture virtually every decent site in the UK, and that proximity – rather than choice – dictates why so many consumers decide to shop at Tesco.
And, Price said, “Tesco says it doesn't underprice, but they put millions into their offers and bombard people with them and that is how they stamp out competition.”
Price accuses Tesco of using its marketing and financial muscle to capture virtually every decent site in the UK, and that proximity – rather than choice – dictates why so many consumers decide to shop at Tesco.
And, Price said, “Tesco says it doesn't underprice, but they put millions into their offers and bombard people with them and that is how they stamp out competition.”
- KC's View:
- The question, I suppose, is whether governmental agencies ought to be in charge of what company gets which sites…and whether such actions would promote rather than inhibit competition. I can see both sides of the argument, but I tend to think it is up to retailers to be competitive rather than depending on government intervention.
