Price controls on essential food items: draft legislative provisions

Closes 24 Nov 2026

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Chapter 4: Businesses to whom the measures should apply

This chapter deals with which businesses could be obliged to comply with price cap requirements.

We are proposing that large supermarket chains supplying food to consumers in Scotland would be required to comply with a price cap duty. These businesses are referred to in the draft legislative provisions as a “qualifying business”.

It is proposed that a retailer could be a qualifying business if it meets the following conditions for the business as a whole:

  • more than 50% of its annual turnover is from the sale of grocery items (see fact bank for definition) and
  • it has more than 250 employees, and
  • it has a total annual turnover of more than £250 million per annum.

We are inviting responses on whether the principle of only applying the duty to large supermarket chains achieves the best outcomes for the consumer, the retail sector and the food supply chain and, if so, whether the definition within the draft legislative provisions correctly captures that group of retailers.

Definition of "groceries" used in the draft legislative provisions

“Groceries” means one or more of the following—

  1. (i) food, other than food sold exclusively for consumption on the premises of sale,
  2. (ii) drinks (alcoholic and non-alcoholic), other than drinks sold exclusively for consumption on the premises of sale,
  3. (iii) pet food,
  4. (iv) cleaning products,
  5. (v) toiletries and household goods, other than petrol, clothing, DIY products, financial services, pharmaceuticals, newspapers, magazines and books, greetings cards, CDs, DVDs, videos and audio tapes, toys, plants, flowers, perfumes, cosmetics, electrical appliances, kitchen hardware, gardening equipment, books, tobacco and tobacco products,
20. Do you agree or disagree with the proposal that any price cap scheme would apply to large supermarket chains only?
21. Do you agree or disagree with the proposed definition of qualifying retailers that would be in scope, as outlined in the consultation?
22. Should the price cap policy be applied to any of the following:

Types of store

Independent convenience stores
Small local shops that are owned and operated by an individual or independent business, rather than being part of a larger chain or retail group.

Franchise convenience stores
Convenience stores owned by individual business operators who trade under the brand, systems, and support of a larger company through a franchise agreement.

Symbol group convenience stores
Independently owned convenience stores that trade under a shared brand, such as SPAR, Londis, Nisa Local, Premier, or Costcutter. Store owners retain ownership of their business while benefiting from group purchasing, marketing, and support services.

Specialist retailers (e.g. bakeries, butchers, greengrocers, fishmongers)
Retail businesses that focus on selling a specific type of food or product, often offering specialist knowledge and a narrower range of products.

Locations that do not sell groceries as their primary purpose (e.g. coffee shops, petrol stations)
Businesses whose main activity is something other than grocery retailing, but which may sell a limited range of food, drinks, or grocery items as a secondary offering.

Smaller retailer selling supermarket brand goods
A small retail business that stocks and sells products branded by a supermarket, either through a supply agreement or by purchasing goods for resale.
23. What exemptions, if any, should apply?