Supermarket chains take court action against cut-price rival

Anne Dixey
Sunday 01 August 1993 23:02
Comments

SUPERMARKET giants are uniting against a US-based cut-price chain that could avoid planning rules they have to obey, writes Anne Dixey.

Sainsbury, Tesco and Safeway have taken the unusual step of teaming up to take legal action aimed at making warehouse clubs subject to the same rigorous planning restrictions. The move leaves them open to accusations that they are trying to keep the stores out of Britain. Warehouse clubs - shed-style stores where subscription- paying members can buy cut-price food and goods - have been called the 'silent enemy' because of the way they have hit supermarkets in the US.

The three supermarket chains go to the High Court next month to contest the decision made by Thurrock Borough Council in Essex to give Costco planning permission as a wholesaler. If their judicial review is successful, they say it will set a precedent, classing warehouse clubs as retailers rather than wholesalers.

Peter Bradley, joint spokesman for the supermarkets, said: 'It is not the competition that bothers the retailer . . . we do not mind and we do not fear warehouse clubs coming to Britain but they must compete under the same rules as we do and go through the planning system.'

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in