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SME retail sector not doomed

May 02 2008

Small retailers are 'not in terminal decline', it has been claimed.

Peter Freeman, the chairman of the Competition Commission, told BBC Two's Working Lunch that after 'extensive discussions' with convenience sector representatives, the commission had established that 'the picture [in the retail sector] is very mixed'.

'The small shop sector is not in terminal decline. Conditions are tough; nobody is denying that, but competition is tough,' he commented.

A report published by the Competition Commission today has called on the government to reform the planning system in order to make it harder for supermarket chains to dominate any one geographical area.

Founder of a loyalty card scheme for independent retailers Dian Bird has described local shops as the 'social glue' of the community and without them areas would experience a 'complete change' in the 'landscape'.

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