Tesco accused of squeezing stores out of business with cash-and-carry arm

Village stores have sounded the alarm over what they claim is a battle for survival, accusing the supermarket group Tesco of using its cash-andcarry arm to "squeeze" them out of business by restricting supplies and deliveries of groceries.

- Sara Butler

Independent retailers, many of them also running the local post office, have told the Guardian that a series of changes recently introduced by Tesco's wholesale arm, Booker, were adding to pressures at a time when some villages had been left with one small shop, or none at all.

They claim Booker has reduced the range of items available by up to 30% at some sites, and withdrawn favourites including Yorkshire Tea, Rowntree's sweets and Colman's mustard, as well as reducing the availability of deliveries.

Andrew Goodacre, the chief executive of the British Independent Retailers Association (Bira), called on the competition watchdog to examine the issue and said he would be raising the matter with Kevin Hollinrake, the minister for small business.

"This shows the worst of a large company bullying little shops," he claimed. "Communities want these small shops and these are not businesses making millions of pounds." Booker insists they are committed to serving smaller shops and these changes follow a range review.

Seven years ago, the competition watchdog took a much-criticised decision to wave through the acquisition of Booker, the country's biggest grocery wholesaler, by Tesco, its biggest supermarket chain.