Waitrose admits to contract clauses which blocked rivals from opening stores

Waitrose has admitted to signing land agreements which included clauses that prevented rival supermarkets from setting up new stores near its own sites, the Competition and Markets Authority (CMA) has found.

Waitrose has admitted to a total of seven breaches of the Groceries Market Investigation (Controlled Land) Order 2010 between 2010 and 2019. According to Waitrose, only three of the seven breaches required fixing to rectify outstanding errors.

Waitrose added that it is confident that the clauses weren’t enforced, so there “hasn’t been any effect on competitors or shoppers”.

The order was brought in by the CMA to ensure supermarkets cannot use restrictive terms to prevent rivals from opening stores. Waitrose has now agreed to remove the restrictions in order to comply with the order.

The seven breaches relate to locations in Bromsgrove, Rustington, Swindon, Daventry, Chester, Notting Hill Gate, and Market Harborough, where Waitrose operates existing stores.

The CMA said the order ensures shoppers have more choice and benefit from a wider range of groceries and access to cheaper prices, which is even more important amid the cost of living crisis.

The announcement follows similar changes from Tesco in 2020 after the CMA found it had breached the same rules 23 times.

A Waitrose spokesperson told Retail Sector: “We’ve identified and addressed a small number of historic errors, but don’t believe we’ve enforced these to stop new shops opening.

“All of these branches are closely surrounded by other supermarkets, offering plenty of choice for customers. We’ve worked closely with the CMA and have now strengthened our internal processes.”

Adam Land, senior director of Remedies at the CMA, said: “It’s disappointing that Waitrose has acted against the interests of shoppers, despite these rules having been in place for over 10 years. Families across the UK are facing the rising cost of living. Preventing other supermarkets from opening new stores could stop people saving on their weekly shop.

“Waitrose is now putting this right so that everyone gets a fair deal. We will continue to take action when our rules are broken, and we have asked all supermarkets to show us their land deals comply with the order.”