Andrew Turner, the Island’s MP, today called for the Office of Fair Trading (OFT) to investigate the takeover of Somerfield stores on the Isle of Wight by the Co-operative supermarket group.
Currently, on the Island there are ten Co-op and eight Somerfield stores. Earlier this year, the Co-op made a £1.5 billion acquisition of the Somerfield grocery store chain. In some areas of the Island this will simply mean a change of the name of the local store. However, towns and villages that have both a Co-op and a Somerfield in close proximity may be most affected as the Co-op takeover will remove an option for shopping at a competitor. Towns or villages that have both a Somerfield and a Co-op store are Cowes, Ryde, Sandown, Shanklin and Freshwater. The takeover by the Co-op may, in many instances, reduce choice for shoppers on the Island and a lack of choice is often bad for competition and keeping prices down. Mr Turner is calling for the OFT to investigate the situation.
Mr Turner said:
“I believe that as the Co-op group will own so many stores in the Island’s towns and villages, choice for many shoppers will be reduced. For instance in Freshwater there will now be three Co-ops at Afton Road, Station Road and Avenue Road. Although I welcome companies putting investment into the Island’s businesses, I shall be asking the Office of Fair Trading to look into the issue to protect choice for the Island’s residents.”
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