LONDON (FNS) -- The U.K. Office of Fair Trading has begun an informal investigation into food prices following allegations that food retailers are in collusion to maintain their high margins.
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Published reports in recent months have alleged that British food prices are unnecessarily high because retailers want to maintain their margins, which are the highest in the world. British food retail margins average 6% to 8%, compared with 2.5% to 3.5% in other countries. Industry executives in this country contend their higher margins result from greater efficiencies in distribution and logistics and a higher penetration of private label.
