Friday, 10 March 2006

Supermarkets trading "probe"

British supermarket chains are facing investigation from the Competition Commission, due to their dominance of the grocery market. Tesco, ASDA, Sainsbury's and Morrisons are being accused of forcing local stores out of business.

There really is no need for this probe. This is simply an instance of the free market in action.

Tesco, ASDA, Sainsbury's and Morrisons are simply responding to consumer demand. There must be some kind of demand for high-scale and cheap groceries, or else time, effort and money wouldn't be spent in constructing more supermarkets. In this instance, the consumer is still king though. People can refrain from shopping at the big supermarkets, if they choose. If Tesco or ASDA's sales were declining, then they both would have no choice but to change to secure custom.

As always, the market should sort an occurence like this out. Organisations like the Office of Fair Trading should be abolished.