Curb on 'Tesco towns' could create 1,300 Scottish jobs

Published on Thursday 8 July 2010 13:15

A COMPETITION test to prevent "Tesco towns" and monopolies from other supermarket groups could deliver a £120 million economic boost to Scotland over ten years.

A report from the Centre for Economics and Business Research (CEBR), seen by Scotland on Sunday, concludes that the Competition Commission's proposed supermarket test would boost private investment to the tune of 48m and create 1,300 jobs in Scotland.

This would come about as rival companies gained the confidence to expand in areas currently dominated by a single chain.

The commission made the recommendation as part of an investigation into Britain's 146.3 billion grocery sector and is awaiting a response from the UK and Scottish governments.

A competition test, which has the support of some larger retailers including Asda, would also drive down prices for consumers, the CEBR report claims.

Charles Davis, senior economist at the CEBR, said: "The competition test will help to boost competitiveness in Scotland".

However Colin Borland, public affairs manager at the Federation of Small Businesses in Scotland, said the test would do nothing to help small independent retailers.

He said: "The focus is clearly on getting big supermarkets to compete with one another rather than making it easier for independents to survive aggressive pricing strategies from large multinationals."