Co-op unlawfully blocked 107 rival store openings, CMA finds

The Co-op has admitted to unlawfully blocking over 100 rival supermarkets from opening near its stores.

The Competition and Markets Authority (CMA) found that the convenience store chain had breached an order which limits retailers’ ability to prevent nearby land being used by its competition.

The watchdog said that blocking other supermarkets from opening nearby limits competition and gives shoppers less choice when trying to get cheaper prices.

The CMA raised concerns that the 107 breaches “demonstrates a significant failure of compliance for a business of Co-op’s size”.

The retailer has already addressed 104 agreements and has agreed to resolve the remaining three.

CMA senior director of markets Daniel Turnbull said: “Restrictive agreements by our leading retailers affect competition between supermarkets and impact shoppers trying to get the best deals.

“We know that Co-op has made a considerable effort to amend all their unlawful agreements, given this Order has been in place since 2010.

“Co-op and the other designated retailers must make sure they do the right thing by their customers in the future.”

A spokesperson for Co-op told Retail Gazette: “As a business that is committed to operating fairly, we recognise this is extremely disappointing.

“Co-op operates in a range of markets, both as a community retailer and a national funeral provider and the number of breaches amount to less than 2% of transactions across our entire property portfolio.

“This is a matter we take very seriously, and we have taken all necessary action to ensure this issue is resolved and does not happen again.”

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