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Wal-Mart Says 30% Market Share Too Big

| Written by Stacy Mitchell | No Comments | Updated on Aug 29, 2005 The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/walmart-says-30-market-share-too-big/

In an ironic turn of events, Wal-Mart has called on the British government to intervene in the growing market dominance of rival retailer Tesco.

In comments to the London Sunday Times, Wal-Mart CEO Lee Scott suggests that having more than 30 percent of the market in one category is too much. “As you get over 30% and higher I am sure there is a point where government is compelled to intervene,” he said. “At some point the government has to look at it.”

Tesco, which operates superstores similar to Wal-Mart’s, is Britain’s largest retailer. The company also has a substantial international presence and ranks as the world’s sixth largest retail chain with $51 billion in revenue last year.

Scott’s call for government intervention was prompted by figures released last week showing that Tesco now captures 31 percent of UK grocery sales, up from 28 percent last year. Meanwhile, Wal-Mart’s share of the British food market (through its Asda subsidiary) has fallen from 27 to 17 percent.

In the U.S., small business owners and community activists who favor vigorous enforcement of antitrust policies were delighted by Wal-Mart’s move. However, the company has not yet said whether it plans to ask the federal government to intervene in its own growing market dominance.

Wal-Mart has about one-third of the U.S. market for numerous household staples, such as toothpaste, diapers, and shampoo. According to industry analysts at Retail Forward, Wal-Mart is on track to control 35 percent of the U.S. grocery market within the next few yeas.

 

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About Stacy Mitchell

Stacy Mitchell is co-director of the Institute for Local Self-Reliance, and directs its Community-Scaled Economy Initiative, which produces research and analysis, and partners with a range of allies to design and implement policies that curb economic consolidation and strengthen community-rooted enterprise.  She is the author of Big-Box Swindle and also produces a popular monthly newsletter, the Hometown Advantage Bulletin.  Connect with her on twitter and catch her TEDx Talk: Why We Can’t Shop Our Way to a Better Economy. More

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