Big supermarkets use cheap booze to get customers
Ten Supermarket chains use alcohol as a loss-leader, the Competition Commission has revealed.
The news will come as no shock to the pub industry and in particular All Party Beer Group chairman John Grogan who is leading the fight against cheap supermarket booze.
Grocery retailers might use some products as loss leaders to tempt customers into the store at certain times of the year, such as Christmas, or for events such as the World CupCompetition Commission interim report
The commission's interim report into supermarket power found that Aldi, Asda, the Co-op, Lidl, Morrisons, Netto, Sainsbury's, Somerfield, Tesco and Waitrose all engage in below cost selling in two main area - dry groceries (tinned and packet goods) and alcohol.
Previously, only Morrison's had admitted to selling alcohol below cost but said it was forced to do so to remain competitive.
"Grocery retailers might use some products as loss leaders to tempt customers into the store at certain times of the year, such as Christmas, or for events such as the World Cup," the report said.
However, the report so far fails to draw any conclusions on the effect of below-cost selling.
The commission is required to publish its final report by 8 May 2008 but is aiming to do so by November this year.
Meanwhile, Grogan's EDM calling for action over cheap supermarket booze has gathered further momentum.
To date 61 MPs have signed up in support of the call to end "irresponsible drinks promotions" in supermarkets and off-licences.
