The Co-op supermarket chain has admitted to breaching competition rules more than 100 times across the UK, including multiple instances in Leigh-on-Sea and Rochford, where it unlawfully blocked rival supermarkets from opening new stores.
The worst-offending location nationwide was at Golden Cross Parade in Ashingdon, Rochford, where the Co-op used restrictive agreements on three separate occasions to prevent competitors from setting up shop.
Additionally, in Leigh-on-Sea, the supermarket was found to have unlawfully restricted another competitor from opening in Eastwood Road North.
These anti-competitive practices have directly impacted local shoppers, leaving them with fewer options and, as some have argued, “forced to pay Co-op prices” without the benefit of cheaper alternatives.
How Co-op broke the rules
The Competition and Markets Authority (CMA), which enforces fair business practices in the UK, introduced strict rules in 2010 to prevent supermarkets from using restrictive property agreements to limit competition.
Under these rules, retailers are banned from inserting clauses in property contracts that block competitors from opening in the same area. They are also forbidden from enforcing lengthy exclusivity agreements that keep rival stores out.
Despite these clear regulations, the Co-op, which operates nearly 2,400 stores nationwide, repeatedly failed to comply. The CMA described the supermarket’s substantial number of breaches as “a significant failure of compliance for a business of Co-op’s size.”
Impact on local shoppers
By blocking competition, the Co-op not only reduced consumer choice but also likely kept prices higher than they might have been with rival stores in the area. The supermarket chain, which promotes itself as an ethical and community-focused business, has now been forced to rewrite 104 of these restrictive agreements and has agreed to resolve four more cases.
Co-op responds
A spokesperson for the Co-op acknowledged the seriousness of the issue, stating:
“This is a matter we take very seriously, and we have taken all necessary action to ensure this issue is resolved and does not happen again. As a business that is committed to operating fairly, we recognise this is extremely disappointing.”
While the Co-op has taken steps to rectify its past actions, the revelations have raised concerns about how such widespread breaches were allowed to occur in the first place—and what it means for local competition moving forward.