The American owner of the UK supermarket chain Asda has complained to the Government about the strength of competition within the retail sector:
US-based Wal-Mart, the world’s largest retailer, told the Sunday Times that such a probe was vital now that Tesco’s UK market share had hit a record 30.5%.
Tesco, the UK’s largest supermarket group to Asda’s number two [at around 17%], said the 30.5% figure was “misleading” [because it didn't include food sales from traditionally non-food retailers such as Marks & Spencer and Department stores.]
I am sure there is a point where government is compelled to intervene, particular in the UK, where… planning laws that make it difficult to compete,” said Mr Scott.
BBC News: Wal-Mart calls for Tesco inquiry
The inability of a big-box retailer to adjust to the intricacies of the UK market doesn’t warrant a government enquiry. While Tesco could be complained about for getting too big, getting too powerful in its relationships with farmers and suppliers, it can’t be held accountable for making it hard for rivals to ‘catch up’. Wal-Mart isn’t known for its farmer, consumer or employee friendly policies so just because they feel a grudge towards competitors who they admit do better over the summer months than they do (because of competitor’s higher quality fresh fruits and vegetables which are popular over the summer), doesn’t mean that they should be able to launch into attacks on others. For Asda to compete they will have to move out of low quality, poor value, unhealthy foods; big cuddly toys; discount clothes; and move towards a better style of produce as retailers such as Marks & Spencer have. The race to the bottom is a quick drop and smaller corner shop stores do bad quality far more readily and easily than Asda ever will.
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