Co-op unlawfully blocked 100 rival store openings
The UK's competition watchdog found Co-op had breached an order which limits supermarkets' ability to prevent nearby land being used by rival retailers.
Blocking other grocers from opening nearby hits competition between supermarkets and means shoppers have less choice when trying to get cheaper prices, the Competition and Markets Authority (CMA) said.
A spokesperson for Co-op, said: "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."
The Co-op admitted 107 breaches of the Groceries Market Investigation (Controlled Land) Order 2010. It has re-written 104 agreements and agreed to resolve three others, the CMA said. It released a list of the 107 locations.
The Co-op's spokesperson added: "As a business that is committed to operating fairly, we recognise this is extremely disappointing."
The Co-op owns almost 2,400 stores across the UK and holds a 5.2% market share in the UK's £190.9bn supermarket industry, according to the CMA.
The chain said the number of breaches amounted to "less than 2% of transactions" across its property portfolio, which includes its supermarkets and funeral directors.
Many of the UK's biggest supermarkets have also breached the land order in recent years, but not to the extent that Co-op was found to in the CMA's latest action.
Tesco 23 breaches in 2020
Waitrose 7 breaches in 2022
Sainsbury's 18 breaches in 2023
Asda 14 breaches in 2023
Morrisons 55 breaches in 2023
Marks and Spencer 10 breaches in 2023
Daniel Turnbull, senior director of markets at the CMA said: "Restrictive agreements by our leading retailers affect competition between supermarkets and impact shoppers trying to get the best deals."
The order bans new restrictive covenants which prohibit land being used for a supermarket.
It also bans exclusivity arrangements which prevent landlords from allowing stores to compete with an existing supermarket which were over five years long.
Sainsbury's and Asda told not to block rival stores
Tesco told not to block rival supermarkets
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Inflation to stay ‘miles above target' in blow to rate cut hopes
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Andrew Wishart of Berenberg said policymakers would not cut rates again this year as upward pressure on inflation from global food prices and energy would likely peak in the third quarter. He pointed to higher than expected growth in services inflation to 5pc, which 'may suggest that underlying price pressures could be strengthening'. 'However, the increase was driven entirely by a surge in the volatile airfares component and hotel prices. Oasis' live tour may have temporarily boosted the latter,' he said. 'As we move toward the end of the year, headline inflation should thus begin to ease. However, for headline inflation to fall back to the 2pc target, increases in services prices must slow. 'The 5pc in services prices in July is sufficient to keep headline CPI inflation at 2.5pc even if prices in all other categories stopped rising. 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Here, Telegraph Money explains what your options are. 09:44 AM BST Rising inflation will keep borrowing costs high, warn economists The cost of government borrowing will rise as a result of higher inflation, economists have warned. Julian Jessop of the Institute of Economic Affairs said the news of inflation 'looks set to get even worse before it gets any better'. He said: 'The latest jump in UK inflation to 3.8pc in July was not a big surprise – the Bank of England was already expecting an increase to 4pc in September. 'But rising inflation will continue to eat into real incomes and keep bond yields high, adding to the government's cost of borrowing.' He added: 'The bigger picture is that UK inflation has continued to diverge from the euro area, where inflation has settled at around 2pc. 'This divergence is being driven by higher government-set prices (such as domestic energy bills and the national minimum wage), the continued pass through of higher employer taxes, and high housing costs as demand outpaces supply.' Government borrowing costs have fallen on bond markets today as traders reacted to the Reserve Bank of New Zealand's decision to cut interest rates at the same time as it signalled that lower borrowing costs were on the way, despite an increase in its inflation projections. Bonds had already been given a boost by S&P Global's decision to reaffirm its credit rating for the US on Tuesday. 09:18 AM BST Housebuilders slump after inflation blow Housebuilding stocks slumped on the London Stock Exchange after the latest inflation figures dashed hopes for interest rate cuts. Developers across the FTSE 100 and FTSE 250 fell as much as 1.4pc after the consumer prices index rose to a stronger-than-expected 3.8pc in July. 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Food and drink inflation rose to 4.9pc in July, from 4.5pc in June, which was the highest level since February 2024. Kris Hamer, director of insight for trade body the British Retail Consortium, said: 'Households are once again seeing the cost of their weekly shop climb, with food inflation now up by 1.9 percentage points in just four months. 'This surge has been a key driver behind headline inflation, alongside a rise in transport costs, piling fresh pressure on families already being forced to cut back. 'The Bank of England has been clear that Government policies, which have driven up the costs of employment, are fuelling price rises at the till, while poor harvests and global instability have also added further cost pressures.' 08:46 AM BST 'All should be sacked' as inflation climbs Rachel Reeves has been accused of 'utter incompetence' by Telegraph readers who said her tax raid on businesses had helped fuel inflation. Others said the Bank of England is 'wholly to blame' for cutting interest rates despite high inflation, suggesting failure to control food prices was a 'fundamental economic failure'. Here is a selection of views from the comment section below and you can join the debate here: 08:33 AM BST No more rate cuts this year, warn economists The Bank of England will not cut interest rates again this year as inflation 'is set to stay miles above target for the foreseeable future', economists have warned. Pantheon Macroeconomics has predicted inflation will remain around 3.7pc on average for the rest of 2025. It said official figures for July showed services inflatuon was 'sticky' in a blow to those at the Bank of England 'that argued hard at the August meeting about the disinflationary process being underway'. Policymakers were forced to make an historic revote on whether to cut interest rates from 4.25pc to 4pc at their last meeting, eventually choosing to do so by the thinnest of margins. Economist Elliott Jordan-Doak said the latest inflation figures come on the back of a GDP report 'that smashed consensus estimates, and a labour market report that showed the jobs market stabilising'. He said: 'The big picture remains that inflation is set to stay miles above target for the foreseeable future; we expect headline inflation to remain above 3pc until April 2026, forcing the MPC to stay on hold for the rest of this year at least.' 08:08 AM BST UK stocks fall after inflation blow The FTSE 100 declined at the open after stronger-than-expected inflation dashed hopes for further rate cuts this year. The UK's flagship stock index was down 0.1pc to 9,177.37 as traders slashed bets on the Bank of England reducing borrowing costs again before the end of 2025. The domestically focused FTSE 250 sank by 0.3pc to 21,770.37. 07:57 AM BST 'Oasis effect' helps drive up hotel prices A rise in the cost of overnight hotel stays helped drive services inflation during July as Oasis kicked off their reunion tour. Services inflation hit 5pc last month, also driven by a large increase in air fares. The figure was far higher than the jump from 4.7pc to 4.8pc that had been expected by economists and comes as the chancellor imposed higher costs on businesses through her tax raid. Economists had expected the reunion of Oasis for their first tour in 15 years to push up the costs of hotels and provide further fuel to inflation. Adam Deasy, economist at PwC, said: 'As expected, the summer seasonals drove the change: we saw large increases in airfares, likely due to school holidays, and hotel prices surged – possibly influenced by the 'Oasis effect'. 'This demonstrates the volatility that summer readings can bring and pushes inflation to an uncomfortable new peak since January 2024.' 'Despite recent falls in earnings growth, the Bank of England sees the all-important services inflation figure continuing to rise through the year, and the increase from 4.7pc to 5pc in July may indicate that it's right. 'This, together with higher-than-expected food inflation through much of 2025, looks poised to push inflation to a peak of 4pc later this year, double the Bank's 2pc target.' 07:42 AM BST Pound edges higher as hopes of September rate cut 'extinguished' The value of the pound increased after the stronger-than-expected inflation effectively ruled out the chances of a September interest rate cut. Sterling rose 0.2pc against the dollar to $1.351 and gained 0.2pc versus the euro to €1.161 after prices rose at a rate of 3.8pc in July, faster than projections of 3.7pc. Suren Thiru, economics director at ICAEW, said: 'July's outturn probably extinguishes hope of a September interest rate cut, while strengthening underlying inflationary pressures calls into question whether policymakers will be able to relax policy again this year.' He added: 'Increasing services inflation suggests that rising National Insurance and National Living Wage costs are exacerbating underlying price pressures by more than offsetting the current downward squeeze from looser labour market conditions. 'While spiralling business costs and food prices may mean that inflation peaks higher than the Bank of England's prediction of 4pc, it should start decelerating in the autumn as a weaker economy increasingly bears down on prices.' Monica George Michail, associate economist at Niesr, added: 'The Bank faces a difficult balancing act between lowering inflation and boosting a sluggish economy. 'Given that several of the current drivers of annual price increases are one-off policy changes, we think the Bank of England may look through them and cut interest rates one more time this year. 'However, there remain upside risks especially from food prices and sustained wage pressures, which will force the Bank to remain cautious' 07:35 AM BST Interest rates may not be cut until next year, warn economists The higher than expected rise in inflation to 3.8pc in July, from 3.6pc the previous month, makes life even more difficult for the Bank of England. Its nine-person rate-setter panel is already struggling to agree on the right diagnosis for the economy's ills. For the first time ever they were forced into a second round of voting in August, before ultimately agreeing to lower interest rates by 0.25 percentage points to 4pc. The latest figures will make their balancing act even more fraught. Inflation is rising faster than expected, but growth has been better than anticipated. Normally that would make policymakers err on the side of caution and swerve rate cuts. Among the drivers of inflation in July were airfares – worsened by how the school holidays fell – and hotel prices, likely affected by Oasis making a return. The rate setters may judge these are temporary factors and persist with cutting rates. But the risk of price rises proving stubborn will be a big concern. 'The risk is that inflation expectations and wage growth rise further and the next move down in rates does not happen until next year,' warns Ruth Gregory at Capital Economics. 07:27 AM BST Rail fares on track to jump by 5.8pc Regulated train fares in England may increase by 5.8pc next year, based on a measure of inflation announced today. The Office for National Statistics said Retail Price Index (RPI) inflation rose to 4.8pc in July. The Government has not confirmed how it will determine the cap on regulated fare rises in 2026, but this year's 4.6pc hike was one percentage point above RPI in July 2024. If that formula is used to set next year's fare increase, the cost of train travel will jump by 5.8pc. Pressure group Railfuture recently said 'it would be outrageous' if fares even rose by as much as 5.5pc. 07:19 AM BST Tories say rising inflation 'deeply worrying for families' Mel Stride, the shadow chancellor, said inflation jumping to its highest level in more than 18 months was 'deeply worrying for families'. He said: 'Labour's choices to tax jobs and ramp up borrowing are pushing up costs and stoking inflation – making everyday essentials more expensive. And with leading economists warning that the Chancellor has blown a colossal black hole in the public finances, families and businesses are bracing for yet more pain come the Autumn Budget.'Families are paying the price for Rachel Reeves' economic mismanagement. Britain can't afford Labour.' 07:16 AM BST Reeves admits 'more to do' as inflation jumps Rachel Reeves said there is 'more to do' to ease the cost of living after inflation jumped to its highest level since January last year. The chancellor said: 'We have taken the decisions needed to stabilise the public finances, and we're a long way from the double-digit inflation we saw under the previous government, but there's more to do to ease the cost of living. 'That's why we've raised the minimum wage, extended the £3 bus fare cap, expanded free school meals to over half a million more children, and are rolling out free breakfast clubs for every child in the country. 'Through our Plan for Change we're going further and faster to put more money in people's pockets.' 07:11 AM BST Air fares and petrol prices push up inflation ONS chief economist Grant Fitzner said: 'Inflation rose again this month to its highest annual rate since the beginning of last year. 'The main driver was a hefty increase in air fares, the largest July rise since collection of air fares changed from quarterly to monthly in 2001. 'This increase was likely due to the timing of this year's school holidays. 'The price of petrol and diesel also increased this month, compared with a drop this time last year. 'Food price inflation continues to climb, with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises.' 07:06 AM BST Inflation jumps to 3.8pc The rate of inflation rose to 3.8pc in July from 3.6pc in June, the Office for National Statistics said. Transport, particularly air fares, made the largest upward contribution to the monthly change. 06:46 AM BST Oasis reunion could fuel inflation Prices in the UK are set to have risen faster last month as school holidays boosted travel costs and grocery bills remain elevated. However, some economists have said an 'Oasis bump' could have contributed to higher hotel and accommodation prices in July. Sanjay Raja, senior economist for Deutsche Bank, said this could partly be attributed to Oasis kicking off their reunion tour in July. The concerts brought in hordes of fans to arenas in Cardiff, Manchester, London and Edinburgh, which could have driven greater demand for hotel rooms. Accommodation prices could rise by as much as 9pc in July, compared with June, 'with the Oasis concerts having a strong impact on Manchester prices alone', Mr Raja said. He is predicting headline UK inflation will have risen to 3.8pc in July. 06:28 AM BST Good morning Thanks for joining me. Inflation has been forecast to have climbed from 3.6pc to 3.7pc in July. We will cover the data as it is released and what it means for you and the markets. Here is what you need to know. 5 things to start your day The tax traps Reeves must fix to grow the economy | Reforming the UK's flawed taxation system could provide a much-needed boost for the Chancellor Jeremy Warner: Reeves must take her share of the blame for rising inflation | Labour cannot keep forcing minimum wages higher if the cost is a surge in unemployment Rural council tax to rise by £380 under Rayner plan | Middle-class households face higher bills to help fund services in poorer neighbourhoods America the preferred destination as wealthy consider quitting Britain | Millionaires eye English-speaking countries and favourable tax rates amid fears of fresh Reeves raid JD Vance forced UK to drop demand for 'backdoor access' into iPhones | Home Office agrees to withdraw order seeking to force Apple to break its device encryption What happened overnight Global share markets came under pressure on Wednesday after a tech-led sell-off on Wall Street. Benchmarks fell in Japan, South Korea and Taiwan, pulled lower by selling of computer chip makers. Tokyo's benchmark Nikkei 225 declined 1.7pc to 42,787.28. Computer-chip equipment makers Advantest plunged 6.6pc and Disco dropped 4.7pc. Chip maker Tokyo Electron lost 1.9pc and Lasertec lost 1.8pc. Japan reported its exports fell slightly more than expected in July, pressured by higher tariffs on goods shipped to the US. South Korea's Kospi dropped 1.4pc to 3,096.09, while the Taiex in Taiwan fell 2.4pc after chip maker TSMC dropped 3.8pc. On Wall Street, falls in Nvidia and other heavyweight artificial intelligence stocks pulled the S&P 500 down 0.6pc, to 6,411.37. They also dragged down the Nasdaq by 1.5pc, to finish at 21,314.95. However, the blue-chip Dow Jones Industrial Average ended roughly flat, ending at 44,922.27, after briefly touching an all-time high. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.314pc from 4.346pc late on Monday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
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- Yahoo
Raging shoppers threaten to boycott Tesco as meal deal prices rise
Tesco is putting up the price of its meal deal in a move that has left shoppers fuming. The price hike comes into place tomorrow with meal deal lovers facing a 25p increase. The lunchtime option, which includes a main, snack, and drink, will cost £3.85 with a Clubcard, a 25p increase. (Image: Newsquest) READ MORE: Tesco and Asda suspend supplies from pig farm over animal cruelty reports Non-Clubcard shoppers will see the price rise by 25p to £4.25. The premium meal deal will also increase from £5 to £5.50 for Clubcard holders and from £5.50 to £6 for non-Clubcard holders. The news broke after a leaked image of the new prices was posted on Reddit writing: "hardly a deal." READ MORE: Tesco store forced to close after 'disturbance' broke out (Image: Newsquest) Users quickly responded to the thread with one saying: "All the supermarkets raising their meal deal prices is so so so stupid, why would you not want to be the best price? Greed vs greed." Another posted: "I hope this isn't true. Might as well get rid of the meal deal if Tesco keeps upping the price." A third added: "I will be boycotting the meal deal from when this hike occurs." A fourth moaned: "£3.60 I could still defend, getting a bit mad now though." READ MORE: Millions of Tesco shoppers can earn extra Clubcard points worth up to £50 A year ago, Tesco raised the meal deal price from £3.40 to £3.60 for Clubcard holders and from £3.90 to £4 for non-Clubcard holders. And in October 2022, the price increased for the first time in a decade, from £3 to £3.40 for Clubcard members and from £3.50 to £3.90 for others. Tesco's lunchtime meal deal is popular, offering a wide variety of choices, from sandwiches, wraps and sushi for the main, to snacks such as crisps, chocolate or fruit, along with drinks including Lucozade and iced coffee.
Business Insider
12 hours ago
- Business Insider
Analysts Are Bullish on Top Technology Stocks: Sunny Optical Technology (Group) Co (SNPTF), Lam Research (LRCX)
There's a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Sunny Optical Technology (Group) Co (SNPTF – Research Report) and Lam Research (LRCX – Research Report) with bullish sentiments. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Sunny Optical Technology (Group) Co (SNPTF) DBS analyst Jim Hin Kwong Au maintained a Buy rating on Sunny Optical Technology (Group) Co today and set a price target of HK$110.00. The company's shares closed last Tuesday at $9.87. According to Au is a 5-star analyst with an average return of 18.4% and a 69.7% success rate. Au covers the Technology sector, focusing on stocks such as BYD Electronic (International) Co, AAC Technologies Holdings, and ASM Pacific Technology. Currently, the analyst consensus on Sunny Optical Technology (Group) Co is a Strong Buy with an average price target of $12.17. Lam Research (LRCX) In a report released yesterday, Vijay Rakesh from Mizuho Securities reiterated a Buy rating on Lam Research, with a price target of $120.00. The company's shares closed last Tuesday at $100.33. According to Rakesh is a 5-star analyst with an average return of 21.5% and a 59.8% success rate. Rakesh covers the Technology sector, focusing on stocks such as Credo Technology Group Holding Ltd, Advanced Micro Devices, and ARM Holdings PLC ADR. Currently, the analyst consensus on Lam Research is a Strong Buy with an average price target of $112.64, a 14.0% upside from current levels. In a report issued on August 14, Erste Group also initiated coverage with a Buy rating on the stock.
