Ten supermarket chains guilty of booze loss-leading

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Related tags: Supermarket, Asda, Competition commission

The Competition Commission has accused ten supermarkets of using alcohol as a loss leader.The Commission has produced an interim report in its...

The Competition Commission has accused ten supermarkets of using alcohol as a loss leader.

The Commission has produced an interim report in its investigation into the effect of supermarket power over local grocers and retailers.

One of the issues it is investigating is the effect of below-cost selling on smaller retailers and it identified Aldi, Asda, the Co-op, Lidl, Morrisons, Netto, Sainsbury's, Somerfield, Tesco and Waitrose as guilty of using this practice.

The report added: "For most of these retailers, the majority of below-cost sales were in two or three product groups. The main product groups in which items are sold below cost are dry groceries (tinned and packet goods) and alcohol."

However, the Commission did stop short of coming to any definitive conclusions on the issue of below cost-selling.

It is using the publication of this new report to call for more evidence and submissions from interested parties into these issues before it publishes its final findings - potentially at the end of this year.

Related topics: Legislation, Beer

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