The controversial acquisition in 2004 by Tesco of 45 London convenience stores run by Cullens, Europa and Harts caused the OFT to investigate. Although the move meant Tesco opening Expresses across town, the OFT dismissed calls to refer the purchases for a full Competition Commission inquiry.
Discount chain Kwik Save was a recent casualty of the increased power of other discounters. Somerfield took over Kwik Save in March 1998, and converted the best stores to the Somerfield fascia, pushing the brand downmarket. It went into administration in July 2007 and closed most of its stores across the UK, with the remaining 56 being sold to a new company, FreshXpress.
The big casualty of the decade, Safeway, rose to be the third biggest retailer in the UK in the 1990s. A declining Asda and the Safeway 2000 strategy, including selling the Lo-Cost discount arm and revamping stores for family shoppers, pointed to a positive future. However, merger talks with Asda in 1998 broke down, with Safeway fearing a loss of its brand and it continued to underperform into the 2000s. Various takeover rumours circulated and Morrisons made a successful surprise bid in 2003. The £3bn takeover offer created a nationwide chain of 552 supermarkets. It meant the closure of Safeway's head office in Hayes with the loss of around 1,200 jobs. Morrisons has gone from strength to strength since.?
Has the number of customer complaints about the price of goods increased recently?
