OFT TO REFER GROCERY MARKET TO COMPETITION COMMISSION.

(From Government News Network (Was Hermes-Government Press Releases))

] OFFICE OF FAIR TRADING 49/06 9 March 2006 OFT PROPOSES TO REFER GROCERY MARKET TO COMPETITION COMMISSION

The OFT has today signalled its intention to refer the market for the supply of groceries by retailers in the UK to the Competition Commission for more detailed investigation, and has published its analysis of the market for consultation prior to a final decision in April.

Groceries - defined as food, pet food, drinks, cleaning products, toiletries and household goods - account for nearly half of all retail sales. Total grocery sales in 2005 were around GBP95 billion, representing around 13 per cent of all household spending in the UK.

The grocery market is evolving rapidly. The four largest supermarkets …