Government protection demanded for under-fire small retailers

Apr 14 2009 by Karen McLauchlan, Evening Gazette

BUSINESS groups are urging the Government to give extra protection to small high street retailers amid claims that they are being forced out of business by the bigger players.

Last year, following an 18-month inquiry, the Competition Commission said the future of small retailers is not under threat despite growing competition from Asda, Sainburys and Tesco.

But the Forum of Private Business (FPB) has hit back by saying the opposite is true.

The group said that since 2000, while sales in supermarkets have grown by around 25% and by almost 20% in large convenience stores, specialist stores have seen only a single-digit rise in sales.

The investigation has called into question supermarket practices such as below-cost pricing.

But the British Retail Consortium, which represents large multiples and small independent stores, said size did not necessarily dictate performance.

A spokesperson said: “Smaller stores who may not be able to compete on price alone can continue to thrive by offering something different - such as niche products and extra services.”