24 September 1998
Supermarkets ‘not passing on low prices’

BRITAINS supermarkets have been accused of overcharging their customers by failing to pass on the discounts they can squeeze out of suppliers in the form of lower prices.

A report commissioned by the Office of Fair Trading into the buying power of leading British retailers found their profit margins were higher than in America and Europe.

It also showed that their grip was intensifying, “suggesting that retailers are able to retain the benefits from their increased bargaining power rather than passing them to consumers.”.