Tesco, Britain's largest supermarket, has a 30% share of the food market and is expanding fast, thanks in part to an aggressive discounting program. Wal-Mart-owned Asda Group Ltd., Britain's second-largest retail chain, controls 16% of the market.“As you get over 30% and higher, I am sure there is a point where government is compelled to intervene, particularly in the U.K., where you have the planning laws that make it difficult to compete,” Scott told the Times of London, adding that “at some point, the government has to look at it.”
Those remarks raised some eyebrows in the United States, where the Bentonville, Ark., retailer is regularly accused of abusing its clout to squeeze pennies out of its supply chain, trounce its competition and expand its sales.
“Wal-Mart is asking for an antitrust investigation of a competitor?” asked Albert Foer, president of the American Antitrust Institute in Washington, a think tank. “How delicious.”
Wal-Mart is known for its super-sized profile. It has the world's largest workforce, 1.6 million at last count, more than the entire population of Montana. And 138 million shoppers visit its 5,379 stores and restaurants worldwide each week, racking up $285 billion in sales in 2004.
The retailer's protestations leave people wondering why it would complain about Tesco, given that any debate over curbing power in the global retail market is likely to shine the spotlight on Bentonville.
“Wal-Mart has done a good job of escaping from close antitrust scrutiny in this country, and a lot of people are wondering whether they are vulnerable in this area,” said Foer, who had persuaded Wal-Mart Chairman S. Robson Walton to address his annual antitrust conference in Washington last year.
Chicago Tribune Retail Giant Cries 'Unfair'
Yeah, OK. Good luck with that.
Tags: anti-trust, /puppy
