Tesco branded 'unfair and unethical'
TIGHTER regulations are needed to tame the 'unfair and unethical trading practices' of supermarket giant Tesco, Friends of the Earth claimed today.
The environmental campaign group believes the way the UK's biggest supermarket chain operates is damaging local communities, smaller retailers, suppliers and ultimately consumers.
A briefing from the pressure group calls for action in a number of areas to restrain Tesco and the other major supermarkets.
The criticism comes ahead of Tesco's annual general meeting due to be held in London tomorrow.
In the briefing for MPs, Friends of the Earth said that Tesco's claims about creating jobs for local people overlooked the store group's impact on local shops and communities.
FoE wants to see a cap on the retail floorspace of superstores and for local authorities to consider more carefully the impact of out-of-town developments on businesses in the centre before granting planning permission.
It also called for Tesco to be stopped from taking over further convenience store chains as it has recently.
The group also suggested Tesco is paying low prices to suppliers in the UK in order to maximise its profits and called for a stronger statutory supermarket code of practice with an independent watchdog to enforce it.
Sandra Bell, the group's food and farming campaigner, said: 'Tesco's success has made it immensely powerful - a position that it is clearly abusing by putting small traders out of business and killing off local high streets, bullying suppliers, and damaging the environment through its never ending demand for cheap food.
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'The evidence against Tesco can no longer be ignored. It is time for the Government to regulate and tame this corporate beast.'
A Tesco spokesman described Friends of the Earth‘s comments as 'misleading'.
In a statement, the stores group added: 'Tesco is a responsible company and we are proud of our record of serving communities around the country and the benefits we bring, such as jobs, housing and investment in local economies.
'It is disappointing that Friends of the Earth continue to ignore these benefits and the views of the majority of customers and suppliers with whom we talk every day.'
Tesco is easily the UK's biggest supermarket with 27.3% of the market, according to latest till-roll figures from analysts TNS. Asda remains in second place with a 16.6% share. Sainsbury's has slipped to third, with 15.7%, and only 1.1% ahead of Morrisons fresh from its £3bn takeover of Safeway.