REG - Office of Rail&Road SSP Group PLC WH Smith PLC - ORR railway station catering market study

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16/06/2023 07:00

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RNS Number : 8970C  Office of Rail and Road  16 June 2023

ORR launches railway station catering market study

16 June 2023

The Office of Rail and Road (ORR) has today launched a market study
(https://www.orr.gov.uk/railway-station-catering-market-study) into railway
station catering.

Railway stations are commercially attractive locations for retailers.
Conservative estimates suggests that passenger spending is well in excess of
£1 billion per annum and, as rail passenger numbers recover from the COVID-19
pandemic, we expect this to be reflected in footfall at rail station retail
outlets.

We want to make sure that the market is working as well as possible for
passengers. As part of its study to understand potential issues, including
barriers for new entrants, ORR has started to gather intelligence on the
structure of the market, the effectiveness of competition and outcomes for
consumers. ORR has therefore invited submissions from interested parties on
the issues raised in the two documents it has published today.

The Statement of Scope and Market Study Notice documents include further
details on the subject matter of this study and timing.

Written submissions on the market study should be emailed to
cateringstudy@orr.gov.uk (mailto:cateringstudy@orr.gov.uk) by 7 July 2023.

Grahame Horgan, ORR's head of competition, said:

"As consumers across the country are affected by the rising cost of living, we
want to ensure that passengers are getting affordable food and beverages when
using station facilities. It is important that the railway industry gives
consumers good value for money and improves their journey experience."

Notes to editors

1.   ORR is the independent economic and safety regulator for the railways
in Great Britain, and the monitor of performance and efficiency for England's
motorways and trunk roads.

 

2.   We keep the provision of railway services under review and monitor the
competitive situation in rail services markets. ORR holds powers concurrently
with the Competition and Markets Authority (the CMA) to apply competition law
in markets relating to the supply of services relating to railways.

 

3.   Market studies are one of a number of tools at our disposal to examine
possible competition issues within a certain market or markets in the railways
sector and address them, if appropriate. Previous market studies undertaken by
ORR include:

·    Market study into the supply of signalling systems,
(https://www.orr.gov.uk/monitoring-regulation/rail/competition/market-monitoring/market-study-supply-signalling-systems-november-2020)

·    Market study into the supply of automatic ticket gates and ticket
vending machines
(https://www.orr.gov.uk/monitoring-regulation/rail/competition/market-monitoring/market-study-supply-automatic-ticket-gates-and-ticket-vending-machines)
.

 

4.   ORR also has general statutory duties that it considers before taking
the decision to launch a market study.

 

5.   Conservative estimates suggest that passenger spending from Great
Britain station catering is well in excess of £1 billion p.a. This is at
Network Rail managed stations alone, which collectively account for c. 20% of
GB mainline total entries and exits. The estimate is also based on catering at
stations in general so might be wider than the scope of this study which
focuses on ready to eat/drink food and beverages.

 

6.   Great Britain rail stations are owned and managed by Network Rail or
managed by publicly funded train operators.

 

 

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