Tougher planning procedures will be introduced to prevent supermarkets dominating local stores after proposals put forward by the Competition Commission.
A “competition test” has been recommended to stop those with an already strong presence in a particular area from putting other stores out of business by opening new venues or carrying out extension work.
Competition Commission chairman Peter Freeman said the test will stop retailers consolidating their positions, which could be detrimental to consumers in the long run.
Planning authorities will be advised on the impact of any proposed new development by the Office of Fair Trading.
Applicants new to the area would pass the test, or if there are four or more different retailers in the same industry within a 10 minute drive of the proposed location.
With three or fewer retailers in the market, the store would be approved if it does not give the applicant more than 60% of grocery selling space.
The UK’s biggest supermarket chain, Tesco, challenged the introduction of the competition test earlier this year.
While the Competition Appeals Tribunal did not come down against the measure, it ordered the Commission to carry out more work on assessing the economic impact and effectiveness of the test.
