News

Taming of Tesco is Forum's aim

Multiples
Tesco, which entered the contact lens price war in the summer, was accused by a pressure group of threatening independent businesses this week.

Tesco, which entered the contact lens price war in the summer, was accused by a pressure group of threatening independent businesses this week.

After the supermarket unveiled glowing results for the Christmas and New Year period, a retail pressure group urged the Government to control the supermarket giant's growth to save independent businesses.

The Forum of Private Business, which represents 25,000 small to medium-sized UK firms, has demanded that the retail giant, which currently has over 30 opticians throughout the UK from Swansea to Aberdeen, be brought under control.

'Tesco has become the King Kong of the high street. It is too powerful, too greedy and too dominant,' said chief executive Nick Goulding.

'These Christmas figures are yet more evidence to snap the Office of Fair Trading into ordering a competition commission inquiry into the dominance of Tesco and the supermarkets'.

When Tesco entered the cut-price contact lens sector last year its chief executive Sir Terry Leahy promised to provide customers with cheaper top brand contact lenses at half the price of other retailers.

The FPB said the retailer would now follow its strong Christmas sales figures with a 'furious price war'.

'All Tesco is interested in is making as much money as possible,' said a Forum spokesman. 'But we are not convinced it can give the quality of service to customers buying contact lenses that independent practices can. The aftercare just isn't there.'

He added that after repeated lobbying, the Office of Fair Trading is now considering carrying out a commission into the dominance of supermarkets, and in particular Tesco.

'We want to encourage the Government to encourage consumers to shop in town centres to drive growth and prosperity in the community. Small businesses, like opticians, are the backbone of the community.'

UK sales for the supermarket chain grew by 10.1 per cent and like-for-like sales increased by 5.7 per cent in the seven weeks to January 7, compared to a 5.5 per cent increase in the previous quarter.

Register now to continue reading

Thank you for visiting Optician Online. Register now to access up to 10 news and opinion articles a month.

Register

Already have an account? Sign in here

Related Articles