The U.K. Competition Commission has formally recommended pushing forward with its “competition test,” which will consider and can block supermarket developments by retailers already powerful in a local area.
According to The Wall Street Journal, permission for a new store will depend on a retailer’s existing market share in the area. Tesco (London) has been outspoken about the ruling, saying the test would block investment in new stores and extensions and create unpredictability in the planning system.
In March, the U.K.’s biggest retailer by sales won a Competition Appeal Tribunal case against the commission’s original findings on the test’s merits. The recent approval ruling was modified from the original to concede that small extensions to existing stores could proceed under certain conditions.
The legislation moves to the British government, which must now decide whether to proceed with it or not.
In separate news, last weekend, Tesco launched a new online clothing store, increasing its competition against established retailers, including Next, Marks & Spencer and ASOS.
The new site, which adds 1000 more products to the 2500 lines currently available, includes Tesco-branded clothes as well as Nike, Timberland and designer collaborations like Mischa Barton handbags.
According to The Journal, Tesco's clothing chief executive Terry Green says the company aims to generate 10 percent of clothing sales online in the future.