CMA supermarkets report "neutral for retailers" says ShoreCap

16th Jul 2015 12:15

(ShareCast News) - Supermarkets do not have much to fear from the UK competition regulator's report on pricing practices, according to analyst Clive Black at Shore Capital.The Competition and Markets Authority (CMA) was moved to examine the industry after a 'cuper-complaint' from Which?, the consumer association."We see this report as a neutral one for the quoted retailers, organisations still coming to terms with what is one of the most challenging market conditions in modern times," Black said.Now that his former "apoplexy and incredulity" have dissipated, Black cried "Hooray for the CMA" and praised its common sense approach, which included noting that there had been fairly low levels of complaints from shoppers on product pricing, promotions and price matching."This is not we should add to state that sharp practices have not and do not ever happen," the analyst said."Additionally, whilst reminding the trade that the CMA will continue to monitor developments and wield its regulatory stick as necessary, it is not proposing extensive and arduous new regulatory measures upon the industry."The greater outcome, Black suggested, was a reminder that existing enforcement powers "should be fully utilised rather than requiring even more burdensome legislation".