Following the removal of the Groceries Order in March 2006, the Competition Authority began the Grocery Monitor Project. The aim of this project was to see how the grocery retail and wholesale trade responded to the new legislative environment.
We published three reports:
- Grocery Monitor Report 1 examined the structure and operation of grocery retailing and wholesaling in Ireland. (published April 2008)
- Grocery Monitor Report 2 examined price trends in the grocery retail sector over the period 2001-2007. (published April 2008)
- Grocery Monitor Report 3 examined the retail planning system in Ireland as applied to the retail grocery sector over the period 2001 -2006. (published September 2008)
We found that the retail planning system made it difficult for new retailers to enter the Irish grocery market and existing retailers to expand. This is because the planning system can influence the type of grocery retailers, where they locate, what they offer consumers and the prices that consumers pay.
All seven recommendations, to promote competition in grocery retailing in Ireland, were directed to the Department of the Environment, Heritage and Local Government. The Department is considering the recommendations in its current review of the Retail Planning Guidelines.
In November 2010, the Government signed a Memorandum of Understanding (MoU) with the EU/IMF. The MoU includes a commitment that, by the end of the third quarter of 2011, the government must conduct a study on the economic impact of eliminating the cap on the size of retail premises with a view to enhancing competition and lowering prices for consumers.
A list of the priority recommendations not yet implemented is given below.
Priority Unimplemented Recommendations
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Recommendation
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Addressed To
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Report Reference
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Local Authorities should be required to include an assessment of competition in “health checks” of local development plans.
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Department of Environment, Heritage and Local Government (DEHLG)
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R4.
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The Retail Planning Guidelines should explicitly recognise the benefits of competition from new retailers for consumers
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DEHLG
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R5.
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Local authorities should be required to formally survey consumers regarding attitudes and preferences
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DEHLG |
R6. |
For Further Information
Kathryn McGuill
Tel: 01 804 5392
e-mail: kmacg@tca.ie