The Competition and Mergers Authority (CMA) has announced plans to further investigate the grocery sector to determine if a lack of competition is leading to inflated prices. In order to provide swift results, the CMA will focus its efforts on areas where consumers are feeling the greatest financial strain.
Essentially, grocery prices are a product of competition at three main levels: between retailers, between suppliers and retailers, and between raw material providers and food suppliers. In order to fully understand how competition is functioning in the retail market, the CMA will use available data and other information to examine the sector’s workings at a granular level.
Parallel to this, the CMA will identify specific product categories that may warrant a more in-depth investigation across the supply chain. A broad range of industry experts, participants, and stakeholder groups will be consulted for their input into the CMA’s analysis and assessment.
According to Sarah Cardell, Chief Executive of the CMA, rising prices have put both consumers and businesses under financial pressure. The CMA is committed to investigating whether there are specific competition problems in the sector, and will release a full and final report, including recommendations for action, no later than the beginning of July.
While the CMA has not identified any specific competition problems in the grocery sector at this stage, their focus clearly indicates concern over continued high prices. The organization’s efforts will hopefully help to ensure consumers can exercise choice with confidence.
