Supermarkets attack OFT investigation into profits

Article Abstract:

The UK Office of Fair Trading (OFT) has defended its current investigation into profits and prices at UK supermarkets as a number of the leading supermarkets have criticised the enquiry as being muddled, slow and overly statistical. The OFT hope to reports its conclusions concerning possible disadvantages to consumers by December 1998. The OFT is using a new economic model developed by its chief financial analyst, Martin Graham and Anthony Steele of the University of Warwick, but the supermarkets claim that its is "severely econometric" and unworkable. In addition, supermarkets are surprised that the OFT has not asked for any information concerning supplier relationships, even though the OFT's enquiry was based on a report which claimed the supermarket beef and lamb prices were not comparable with prices paid to farmers. To date, The bulk of the information handed over has been accounting data.

Comment:

UK: Office of Fair Trading defends its current investigation into profits and prices at country's supermarkets

United Kingdom, Government regulation (cont), Article

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Across the channel there's a real experience in store

Article Abstract:

Hypermarkets are beginning to have a significant impact on retailing in France. However, there are still small shops in many small French towns, and it is much easier to obtain fresh, locally-grown produce in France than in the UK. It is easy for Britons to travel to France to shop, and autumn is a particularly good time of year to go, as ferry companies often have special offers. It is worth taking the trouble to travel beyond the hypermarkets of the channel towns. Markets offer the best value for fruit and vegetables, but most supermarkets also have a wide range of high quality produce.

Retail industry, Retail trade, France, Marketing, Farm produce, Agricultural products

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Clouds gather over 'big four' food retailers

Article Abstract:

United Kingdom food retailers have been affected by deflating or flat food prices, while costs are rising, and by fear of recession. There is also concern about possible government action due to an Office of Fair Trading inquiry to assess whether the major supermarkets are passing on large discounts that they obtain from suppliers. The industry argues that return on capital is lower than in mainland Europe and the US. Some analysts argue that the big supermarkets' stock prices do not reflect the risk that the issue could be referred to the Monopolies and Mergers Commission.

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