Anti-competitive land deals re-written to help businesses and shoppers
Waitrose has agreed to rewrite several property deals after it signed land agreements which blocked other supermarkets from opening nearby.
- Waitrose re-writes land deals to allow rivals to open nearby
- “We will continue to take action when our rules are broken”, says CMA’s Adam Land
Waitrose admitted to a total of 7 breaches of the Groceries Market Investigation (Controlled Land) Order 2010 between 2010 and 2019 after the Competition and Markets Authority (CMA) took a closer look at how supermarkets were competing. The Order was brought in by the CMA to ensure supermarkets cannot use restrictive terms to prevent rivals from opening stores.
By helping supermarkets to compete freely, the Order aims to ensure that shoppers have more choice and so benefit from a wider range of groceries and access to cheaper prices – which is even more important as the cost of living rises.
To comply with the Order, Waitrose has agreed to remove restrictions from land agreements which prevented rivals from setting up new stores.
The 7 breaches relate to the following locations, where Waitrose operate existing stores:
- Bromsgrove
- Rustington
- Swindon
- Daventry
- Chester
- Notting Hill Gate
- Market Harborough
Adam Land, Senior Director of Remedies at the CMA, said:
It’s disappointing that Waitrose has acted against the interests of shoppers, despite these rules having been in place for over 10 years.
Families across the UK are facing the rising cost of living. Preventing other supermarkets from opening new stores could stop people saving on their weekly shop.
Waitrose is now putting this right so that everyone gets a fair deal. We will continue to take action when our rules are broken, and we have asked all supermarkets to show us their land deals comply with the Order.
The announcement today follows similar changes from Tesco in 2020 after the CMA found it had breached the same rules 23 times.
Notes to editors
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The CMA’s letter sent to Waitrose is publicly available and sets out the CMA’s responseis to the seven breaches reported by the supermarket.
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The CMA’s assessment of land deals by other supermarkets covered by the Order is ongoing.
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While the CMA does not currently have the power to fine those who breach the Order, the government is currently considering giving the CMA these powers.
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The Groceries Market Investigation (Controlled Land) Order 2010 banned new restrictive covenants, which prohibit a piece of land from being used for a supermarket, when it came into force in 2010.
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The Order also banned Exclusivity Arrangements (which prevent landlords from allowing competing stores in the same block as an existing supermarket) which were over 5 years long.
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For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.