A business lobby group has branded an inquiry into the grocery sector by the Competition Commission (CC) a failure.

The Federation of Small Businesses (FSB) said the inquiry had let down independent retailers, failing to come up with any remedies to halt the decline of the 2,000 small shops which go out of business each year.

They added that they were ‘dismayed’ the CC had failed to consider the impact of supermarkets on independent retailing.

In response to the inquiry, the FSB said they have set up a ‘Keep Trade Local’ campaign, raising awareness of the value small, independent retailers provide to consumers and highlighting the issues the CC failed to address.

Clive Davenport, the FSB’s trade and industry chairman, said the CC had failed to understand the value of small shops.

“The remit of this inquiry was far too narrow. Supermarkets are forcing small shops out of business in many areas of retailing – not just groceries.

“Important issues such as the travesty of almost limitless free parking at out of town superstores while independent high street shops face ever-more stringent parking restrictions were not even considered.”

He added that retailers had been left with no alternative but to campaign and raise political awareness.

“It is now up to our elected representatives to step in and prevent disaster,” he said.

© Crimson Business Ltd. 2008