Organisation: Tesco

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Analysis and commentary by Echo Research.

Tesco stood up well against the onslaught of reports covering the Office of Fair Trading's (OFT) likely referral of UK supermarkets to the Competition Commission. "Supermarkets face dominance probe"(bbc.co.uk, 9/3). As market leader, Tesco was the most targeted player in the grocery arena. While The Sun reported that, "The OFT does appear to have Tesco in its sights"(10/3), others left little room for doubt over the giant's position. "Tesco under siege …"headlined Brand Republic (10/5).

Tesco, however, appeared unruffled by the exposure, responding with a clear message from a single source: "… the development of the UK grocery market has been good news for consumers"(Lucy Neville-Rolfe - Tesco, The Times, 10/3). The OFT did not disagree, indeed affirming this statement by highlighting the rise of product choice, quality and price reductions.

But the OFT's latest inquiry, while ackowledging the benefits of competition, focused attention on the issues of land banks, proscriptive covenants and planning regulations. "We believe the evidence provides grounds to suspect the big four are engaging in strategic behaviour, with the intention of restricting competition"(OFT, Guardian, 10/3). Tesco, however, remained "confident"that the regulators would find their competition concerns "are misplaced"(Lucy Neville-Rolfe - Tesco, Reuters, 9/3).