SMALL RETAILERS VS THE BIG FOUR
Listed under: Feature Article
Published: Tuesday, August 04, 2009
Stopping one big brand from dominating a local area is the aim of new plans announced by the Competition Commission, last month.
Under the proposals, any brand looking to open a new local outlet will have to discuss it with the authorities first to assess whether having another branch in the area is appropriate.
While the move increases competition amongst the big players, it is not clear how beneficial the move will be to smaller retailers in the said village, town or city, who will still have the free parking facilities and bulk buying power of the supermarkets to contend with.
“It’s all well and good increasing competition between the multi-billion pound supermarket chains but we would like to see more consideration given to ordinary shop owners desperately trying to survive,” says Phil Orford, chief executive of the Forum of Private Business (FPB).
The FPB has expressed its belief that the Competition Comission overlooks the plight of today's independents and is calling for it to do more to help them remain competitive.
“I think it is fair to say that the major supermarkets are in a very secure position, despite the recession, and need little help from the Competition Commission,” says Mr Orford.
“Instead, I would urge the Commission to focus its efforts on helping independent retailers - the lifeblood of the British high street - to remain viable against the competition from the supermarkets,” he adds.
However, since 2000 sales in supermarkets have grown by 26% and by 19% in large convenience stores, while specialist stores experienced only a one percent growth in sales, according to an 18-month inquiry carried out by the Commission last April.
Despite the figures, it insisted that, although it is often difficult for smaller businesses to compete with the likes of Asda and Tesco, their future is not under threat.
While the move increases competition amongst the big players, it is not clear how beneficial the move will be to smaller retailers in the said village, town or city, who will still have the free parking facilities and bulk buying power of the supermarkets to contend with.
“It’s all well and good increasing competition between the multi-billion pound supermarket chains but we would like to see more consideration given to ordinary shop owners desperately trying to survive,” says Phil Orford, chief executive of the Forum of Private Business (FPB).
The FPB has expressed its belief that the Competition Comission overlooks the plight of today's independents and is calling for it to do more to help them remain competitive.
“I think it is fair to say that the major supermarkets are in a very secure position, despite the recession, and need little help from the Competition Commission,” says Mr Orford.
“Instead, I would urge the Commission to focus its efforts on helping independent retailers - the lifeblood of the British high street - to remain viable against the competition from the supermarkets,” he adds.
However, since 2000 sales in supermarkets have grown by 26% and by 19% in large convenience stores, while specialist stores experienced only a one percent growth in sales, according to an 18-month inquiry carried out by the Commission last April.
Despite the figures, it insisted that, although it is often difficult for smaller businesses to compete with the likes of Asda and Tesco, their future is not under threat.
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There are currently 1 comments - Have Your Say Today
is the Competition Competition assessing the world from the inside of a brown paper bag, in an if you can’t see it it can’t be happening kind of way? A stroll in my part of the world - foodie Chiswick - would show them just how much supermarkets affect business in local food shops (not to mention the effect of chain coffee shops on independent cafes). But while the Competition Commission can give guidance, the real decision-makers are the landlords and the often ruthless estate agents who negotiate on their behalf. Their interest is in higher rents. And who pays those? The chains. If the local authority is also a landlord, how dispassionate will it be when judging whether having another supermarket is appropriate? The whole system is corrupt, if not by design by naivete (on the Competition Commission’s behalf). So, as always, it is down to us. We must resolutely continue to shop in local independent shops regardless of how “convenient” supermarket or chain shopping might be. Go for taste, and there is no contest. As for price, regular price-check boards outside one of my local shops reveal that you can’t rely on any one shop or chain to be consistently cheaper; some things are, some things aren’t. For me, the friendliness of a local shop owner who values my custom - and the much wider and more interesting range on offer - are worth so much more than a special offer on something I didn’t particularly want anyway.