British co-operative group Co-op has acknowledged a total of 107 instances in which it failed to adhere to the Groceries Market Investigation (Controlled Land) Order 2010.
The regulation ensures competitive practices by prohibiting illegal agreements regarding land use in the grocery sector.
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The order was established to prevent supermarkets implementing restrictive measures that could hinder competitors from setting up nearby stores.
It also prohibits the use of exclusivity arrangements that restrict landlords from leasing property to competing stores if an incumbent supermarket is already present, particularly when these arrangements extend beyond a five-year duration.
Operating 2,400 outlets nationwide, the supermarket entity holds a market share of 5.2% within the UK’s grocery market, which is valued at £190.9bn.
The UK Competition and Markets Authority (CMA) has expressed concern over the substantial number of violations, indicating a noteworthy lapse in regulatory compliance for an organisation of Co-op’s stature.
Co-op has rectified 104 of these agreements and committed to address the remaining three.
The CMA’s mandate is to ensure that supermarkets engage in fair competition, which ultimately provides shoppers with greater choice, access to a broader selection of groceries and lower prices.
CMA markets senior director Daniel Turnbull 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 CMA’s enforcement of the order against Co-op is part of a broader initiative to maintain competitive conditions within the industry.
This has seen similar actions taken against other retailers for breaches of the same order, including Morrisons with 55 breaches in 2023, Waitrose in 2022 with 7 breaches and Tesco in 2020 with 23 breaches
The CMA also investigates loyalty pricing strategies and conducting a market study into infant formula markets.
