Reactions to the ComCo's Carrefour decision

 It is now official: Coop may take over the twelve Swiss Carrefour stores. This was announced by the Competition Commission Weko in a press release on Thursday. Although this will strengthen the duopoly of Migros and Coop, the Swiss market as a whole will remain under pressure from new competitors even after the takeover, writes the Competition Commission. The Sonntagszeitung newspaper had already reported this at the weekend, citing well-informed circles, and the reactions from Coop and the Swiss branded goods association Promarca were not long in coming. Promarca considers it positive that there is no unequal treatment of companies in the conditions of the ComCo's decision. However, the association criticizes the ComCo's assessment of the future market situation. Promarca considers it unlikely that Aldi and Lidl, with their small product ranges, will enable access for innovative branded products on the Swiss market. In addition, the merger of Coop and Carrefour would lead to a further reduction in the variety of products on offer for the end consumer.
Coop was relieved to note the ComCo's decision. According to the number two in the Swiss retail trade, an unconditional takeover would not have impaired the existing dynamic and price-active competitive situation in the Swiss market. If the situation changes significantly, for example due to the expansion of Aldi and the market entry of Lidl, Coop can, according to the decision, apply for the conditions to be lifted from January 1, 2010.
The Carrefour outlets are now to be converted into Coop Megastores as quickly as possible. This should give customers rapid access to the largest range of branded goods in Switzerland. As announced, Carrefour employees will be able to continue working for Coop within the framework of the collective labor agreement.