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15 February 2008
UK wholesalers could be shunned by supermarkets
UK based wholesalers may be shunned by the nation's biggest supermarkets if they receive extra protection from the Competition Commission.
With the commission to complete an investigation into the relationship between supermarkets and wholesalers, it is widely thought that a regulator may be established to govern their dealings.
A source close to the investigation revealed that any move to strengthen the position of retailers could lead to supermarkets looking overseas for goods.
"Will its power just cover relationships with UK suppliers or will it apply internationally?" the source told This Is Money.
"There's certainly that danger. Retailers don't particularly want to go down that road because customers are saying they want local, British food," he added.
Alternatives to the watchdog could be an overhaul of the existing code of practice governing dealings between the groups. A new code would be much stricter and could be policed by the Office of Fair Trading.
(c) 2008 Adfero Ltd.
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