Waedeled's call followed the publication of the All-Party Parliamentary Small Shops Group's High Street Britain: 2015 report, which demanded that an independent regulator be appointed by the Government to investigate the grocery sector.
Waedeled said supermarkets should not be able to build a big share in one local market by opening several stores in close proximity. He said: 'A local market share cap would encourage competition and the industry would effectively regulate itself.'
Labour MP Jim Dowd, who chaired the group, said a regulator could force retailers to dispose of stores to ensure local competition. The group also recommended a revision of the two-market ruling, under which convenience is viewed as a separate market to one-stop supermarket shopping.
Tesco, Sainsbury's and the BRC slammed the findings. Tesco group corporate affairs director Lucy Neville-Rolfe said: 'The consumer is the best regulator and there is room in a thriving market for anyone who satisfies customers.'
A Sainsbury's spokeswoman said: 'Recent investigations have proved the market is competitive and acts in the interests of consumers, but the report doesn't recognise that competition is healthy.'
BRC director-general Kevin Hawkins argued: 'Thirty million people will shop at supermarkets this week, next week and the week after. A regulator will not preserve one small shop that doesn't satisfy customer needs.'
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