The Co-op Group has admitted 107 breaches of a Competition and Markets Authority (CMA) rule to stop supermarket chains blocking rivals from opening stores nearby.
The CMA introduced the rule in 2010 to stop supermarkets placing restrictive clauses on land in their property portfolio to stop its use by other retailers.
It says the number off breaches by the Group marks “a significant failure of compliance for a business of Co-op’s size”.
The Group has now rewritten 104 of the offending agreements, the CMA says, and has agreed to resolve the remaining three.
“The CMA acknowledges that Co-op has proactively taken steps to address the root causes of these breaches, has cooperated with the CMA to date and is now working with the CMA to take further remedial action to address the breaches identified,” says the letter. “Along with other large grocery retailers, Co-op will now also report annually to the CMA regarding its compliance with the order.
“Nevertheless, the CMA is concerned by the very large number of breaches, which the CMA considers demonstrates significant failures in compliance for a business of Co-op’s size, resources and standing, particularly given that the order has been in force since 2010.”
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Daniel Turnbull, the senior director of markets at the CMA, said: “Restrictive agreements by our leading retailers affect competition between supermarkets and impact shoppers trying to get the best deals. We know that Co-op has made a considerable effort to amend all their unlawful agreements, given this order has been in place since 2010. Co-op and the other designated retailers must make sure they do the right thing by their customers in the future.”
A spokesperson for the Group said: “As a business that is committed to operating fairly, we recognise this is extremely disappointing.
“Co-op operates in a range of markets, both as a community retailer and a national funeral provider and the number of breaches amount to less than 2% of transactions across our entire property portfolio.
“This is a matter we take very seriously, and we have taken all necessary action to ensure this issue is resolved and does not happen again.”
The CMA said the action against the Co-op was part of a wider effort to enforce the 2010 rule.
The CMA has previously taken action on similar breaches, against Tesco in 2020 (23 breaches), Waitrose in 2022 (seven breaches); Sainsbury’s (18); Asda (14) in 2023; Morrisons (55); and Marks & Spencer (10) in 2023.
Click here to see the CMA letter and a link to a list of affected locations.
