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CSNA Questions Criteria Of New Grocery Multiple/Symbol Group JLC

Published on Nov 12 2013 12:25 PM in Retail

CSNA Questions Criteria Of New Grocery Multiple/Symbol Group JLC

The Convenience Stores and Newsagents Association (CSNA) has written to the Department of Jobs, Enterprise and Innovation suggesting that the proposed Grocery Multiple and Symbol Group JLC is unfair for retailers that operate under a symbol group.

The group noted that there are a number of independents that purchase from Musgrave, BWG, Londis, Barrys but elect not to trade as a symbol, which under the new JLC guidelines would mean that they are not required to pay JLC rates.

"There is absolutely no equity or fairness in requiring Independent undertakings that pay a franchise fee to a wholesaler to trade under a particular franchise to be included in this new JLC, while other undertakings purchasing from the same wholesaler but not paying a franchise fee are excluded from the new JLC," the CSNA said in its letter.

"If a retailer takes down his/her Spar/Gala/XL etc fascia, are they 'released' from the requirement to pay a JLC rate?" the CSNA asked.

The CSNA also noted that single-price stores such as Dealz would also be exempt from the JLC, as they would not fall under the 'grocery' definition covered by the legislation.

"The new JLC will not 'capture' these businesses even though they separately (individually as stores), and collectively (as companies and as a sector) have sales and turnover that are larger than those of most Independent undertakings be they symbol or non-symbol," it said.

© 2013 - Checkout Magazine by Stephen Wynne-Jones

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