23rd Jan 2007 10:13
Tesco PLC23 January 2007 CONSUMERS MUST COME FIRST IN COMPETITION INQUIRY - TESCO RESPONDS TO COMPETITION COMMISSION EMERGING THINKING Tesco today welcomed the progress report from the Competition Commission butexpressed surprise at the lack of focus on consumers. Responding to the first stage of the inquiry which still has a year left torun Tesco Chief Executive, Sir Terry Leahy, said: "We are at the early stages ofthis inquiry but the Commission appears to have made some progress on dispellingthe myths surrounding our industry, particularly in their early work onsuppliers where they have found no problems with the economic viability ofmanufacturers, processors or wholesalers. "However I am concerned that consumers barely get a mention in today's reportand I urge the Commission to ensure that they are top of the list for theremainder of the inquiry. I believe passionately that consumers have benefitedin so many ways from the intense competitive rivalry in this industry." On consumer choice Sir Terry added: "All of the evidence suggests that customersare very satisfied with the choice available to them and new stores continue toopen all the time. Customers of larger stores drive up to 20 minutes to shop andthe report shows that on this basis more than 90% of the urban population haveaccess to three or more larger supermarkets. When you add in smaller stores,discounters, Marks and Spencer and internet shopping the choice is evengreater." Competition for land and new stores is also intense and the report shows thatTesco's main competitors are acquiring significant holdings of land. Sir Terrynoted this comment and added: "I believe this points to further intensecompetition in the future." Sir Terry concluded: "The Commission will investigate all of the issues furtherand I am very confident that once they look at all of the evidence they willfind, as they have in previous years, that our industry is competitive and goodfor consumers and will remain so in the future." ENDS Notes For Editors: Tesco's submission to the Competition Commission can be found at www.tesco.com/talkingtesco For further information please contact the Tesco Press Office on 01992 644645. To contact the duty press officer out of hours please telephone 01992 644733 andselect option 2 from voicemail. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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