THE traditional corner shop will be history by 2015, according to a draft report from the all-party small-shops group. The leaked paper warns the future of food wholesalers is under threat if the growth of the big four supermarket chains continues.

The revelation comes as pressure mounts for a fresh Competition Commission inquiry into the growing power of Tesco, JSainsbury, Asda and Wm Morrison.

Independent corner shops are closing at a rate of 2,000 a year and the MPs have concluded that, if the trend continues, wholesalers such as Booker, which supplies small retailers, will become unviable.

“If current trends persist, the number of small shops will fall below a critical mass and we will see the collapse of the wholesale sector in its current form as it becomes an unviable part of the supply chain,” said a source close to the committee.

As a result, all other small retailers that depend on the wholesale sector might have to close.

The MPs are said to have concluded that the loss of the corner shop would lead to “food deserts” in rural and poor areas, viewed as unprofitable by large retailers.

“This would have a devastating effect on the health of the population’s low earners and the elderly,” said the source.

Evidence to the MPs warned of the wider dangers of the growing dominance of the four supermarkets, with the 2000 petrol crisis cited as an example of the problems that can be caused when supply is concentrated in the hands of just a few suppliers.

“The essential products that the UK depends on for sustenance become increasingly vulnerable if their distribution is limited to few routes to market through a limited supply chain. Any major problems with just part of the distribution system could mean large parts of Britain would not have any access to food or will suffer from ill-health as a direct result of problems with food,” said the source.

The committee is understood to be concerned about the planning process and is questioning whether supermarkets abuse their power. In particular, the MPs have concerns about the use of Section 106 agreements — under which supermarket companies “pay” councils for environmental and traffic improvements when receiving planning permission for a new store.

The committee also accuses the big companies of “predatory pricing”. MPs heard how Tesco had targeted Proudfoot, a small independent chain, when it opened a store in Withernsea, Humberside, offering customers £8 off every £20 spent — a 40% discount.

Jim Dowd, chairman of the all- party group, described the tactic as “scandalous” during an exchange with Lucy Neville-Rolfe, Tesco’s company secretary.

The MPs, it is believed, also fear that the loss of corner shops will hit entrepreneurship in Britain.

A final version of the committee’s report is due to be published at the end of this month.

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