Supermarkets and pressure groups divided over decision
Retailers and other interested parties have mixed views on the OFT's announcement proposing a Competition Commission inquiry into the grocery sector and differ on the remit of any investigation.

Tesco: welcomes debate

'We look forward to the debate and a prompt and speedy conclusion, which will confirm the OFT's overall comment that consumers have benefited from competition between supermarkets and their expansion into the convenience sector,' said Tesco group corporate and legal affairs director Lucy Neville-Rolfe. 'We are confident that once the other observations in the report are explored, the regulators will find that they are misplaced.'

Asda: concerns over customer choice

'While we thought a Competition Commission referral unnecessary, we're very pleased that the report highlights planning is a real concern,' said Asda in a statement.

'Remember, this was about the convenience market - a market we're not in. Many of the concerns raised are ones we share. For instance, there are dozens of towns up and down the country that have relatively little choice; they are only served by one or two supermarkets. To drive more competition we believe these towns would benefit by having an Asda.

'The unintended consequence of the present system is that it limits customer choice.'

Sainsbury's: competitive market

Sainsbury's chief executive Justin King said: 'UK food retailing is one of the most competitive markets and works in the interests of consumers. The OFT states clearly that price, quality, range, choice and service are all working efficiently for consumers and so we fail to see why further investigation of these aspects is required. If a wider investigation is to go ahead it should rightly include the entire market but we see no reason why specific concerns raised by the OFT, particularly the planning system, could not be investigated in isolation.'

New Economics Foundation: review lacks scope

'The announcement is long-overdue good news for local communities, small independent shops, suppliers and farmers,' said NEF policy director Andrew Simms. 'But it will be a Pyrrhic victory unless the scope of any review is broadened to include the local economic, social and environmental impact of the big supermarkets.

'The OFT are still in denial about the full impact of the current market domination of the big four supermarkets.'

Friends of the Earth: protect farmers too

'The OFT's decision is good news for consumers and for the high street. It is now crucial that the Competition Commission proceeds with its investigations urgently and focuses on finding solutions that will increase consumer choice by encouraging real diversity in our high streets,' said Friends of the Earth supermarkets campaigner Sandra Bell.

'It must also be charged with finding new solutions to protect our hard pressed farmers from supermarket bullying.'

Forum of Private Business: report too narrow

'The OFT's analysis is too narrowly focused on competition and not on the negative effects of supermarkets' power on struggling independent retailers,' said the FPB's chief executive Nick Goulding.

'We cannot escape the reality that there is a crisis right here and right now in Britain's towns villages and cities. This is our last chance to arrest that crisis and this inquiry has to have the depth and ambition to truly tackle the issues.'

Association of Convenience Stores: landmark ruling

'This is a landmark ruling for independent retailers and consumers,' said ACS chief executive David Rae.

'This is just the start of the process. There is a long way to go before we get the hard and fast outcomes that we believe are required, such as better ways of stopping predatory pricing and greater transparency in dealings between retailers and their suppliers,' he added.

British Retail Consortium: supermarket benefits

'Much of the content of this report is very favourable to supermarkets and acknowledges that competition has delivered major benefits to consumers,' said BRC director general Kevin Hawkins.

'We would expect that the outcome of any enquiry will, yet again, confirm the benefits of supermarket competition to consumers.'