Released on = March 21, 2007, 3:16 am

Press Release Author = Shushmul Maheshwari

Industry = Retail

Press Release Summary = According to the Association of Convenience Stores,
supermarkets are hitting convenience stores hard. In the 12 months to June '06,
2,000 C-stores have put up their shutters.

Press Release Body = UK's Association of Convenience Stores, or ACS, has charged
supermarkets of pressurizing small players to close and reduce choices for
customers. The allegation comes after the Competition Commission produced its
initial report on the effect of supermarkets on competition and stated it is
concerned over the influence of supermarket at ground levels.

ACS reports that 2,000 independent C-stores (convenience stores) closed during the
twelve months to June 2006 as supermarkets creep in the market offering a broad
range of products at one place. Over 9,600 independent c-stores, most of them family
run businesses, have closed their shutters since 2000.

Most of the criticism has been pointed at the market leader Tesco accounting for
31.5% share of the total market, more than double of its closest rival, Asda.
Presently, Tesco takes away £1 in every £8 of consumer spending in UK.

The Competition Commission's interim report expresses concerns that "the position of
the major grocery retailers, individually and collectively, is so strong that it is
distorting competition to an unacceptable degree".

James Lowman, Chief Executive, ACS, stated in news published by Politics.co.uk, "We
strongly believe that practices such as below cost selling and price flexing are
targeted in a predatory manner and have the effect of closing smaller competitors\".

He advised the Commission to monitor the competition and choices across the whole
grocery market and not just the big guns of the market. He adds, "Real choice relies
on a variety of local outlets, not just promoting competition between the large
superstores\".

Lowman adds, "Building more superstores would undermine true competition and reduce
choice and diversity, especially in rural areas and market towns".

"Convenience Stores Market - Worldwide (2005-2008)", a report by RNCOS, says
C-stores are generally open for long hours during the day and for seven days a week.
Due to their convenient location, the prices of products are slightly higher. This
can pose a problem for C-stores in locations where discount stores (sales outlet
that offers products at discounted prices, e.g. UK Supermarkets) are successfully
employing aggressive marketing strategies to attract more and more customers.

The research report also highlights other major market factors, market value and
trends, and total number of C-stores operating in UK. Also, report furnishes the
detailed information on global C-stores market with statistical data.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/CP09.htm
Current Industry News: http://www.rncos.com/blog


Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com