The Co-op has become the latest major UK supermarket to fall foul of a targeted campaign by the Competition and Markets Authority (CMA) to stop the use of ‘unlawful land agreements’ in grocery retailing.
The group has admitted to 107 breaches of an order to stop supermarkets imposing restrictions that block rivals from opening competing stores nearby, the watchdog said.
The CMA added that its campaign is “ensuring that shoppers have more choice and so benefit from a wider range of groceries and access to cheaper prices”.
In a statement, the watchdog added that it was “concerned that this substantial number of breaches demonstrates a significant failure of compliance for a business of Co-op’s size”.
The group owns almost 2,400 stores across the UK and holds a 5.2 per cent market share in the UK’s £190.9bn supermarket industry.
Daniel Turnbull, senior director of markets at the CMA, said: “Restrictive agreements by our leading retailers affect competition between supermarkets and impact shoppers trying to get the best deals.
“We know that Co-op has made a considerable effort to amend all their unlawful agreements, given this Order has been in place since 2010.
“Co-op and the other designated retailers must make sure they do the right thing by their customers in the future.”
The action taken against the supermarket comes after the CMA also took similar steps against Tesco in 2020, Waitrose in 2022 and Sainsbury’s, Asda, M&S and Morrisons in 2023.
By comparison to The Co-op’s breaches, Tesco’s infractions totalled 23, seven for Waitrose, 18 for Sainsbury’s, 14 for Asda, 10 for M&S and 55 for Morrisons.
A spokesperson for Co-op, said: “As a business that is committed to operating fairly, we recognise this is extremely disappointing.
“Co-op operates in a range of markets, both as a community retailer and a national funeral provider and the number of breaches amount to less than two per cent of transactions across our entire property portfolio.
“This is a matter we take very seriously, and we have taken all necessary action to ensure this issue is resolved and does not happen again.”
In an open letter the CMA said: “The CMA acknowledges that Co-op has proactively taken steps to address the root causes of these breaches, has cooperated with the CMA to date and is now working with the CMA to take further remedial action to address the breaches identified.
“Along with other large grocery retailers, Co-op will now also report annually to the CMA regarding its compliance with the order.
“Nevertheless, the CMA is concerned by the very large number of breaches, which the CMA considers demonstrates significant failures in compliance for a business of Co-op’s size, resources and standing, particularly given that the order has been in force since 2010. Following extensive engagement between the CMA and Co-op, the CMA now expects Co-op to move swiftly to rectify all three outstanding breaches.”