Gary's views

Gary's weekly views

Each week an article by Gary has appeared in the Plympton Plymstock and Ivybridge News in South West Devon. The articles are published here

COMPETITION

How many people do you think Tesco employ at Lee Mill? 100? 300? Wrong – over 700, making them one of the largest local employers in just this one store. Years ago, I sat next to their then Chief Executive at a dinner and asked him to explain the secret of their astonishing rise to dominance from humble beginnings. His answer has lived with me: simple, we asked our customers what they wanted and then we gave it to them.

They, and others, are successful because they offer shoppers what they want, and we flock there in droves. But it does not come without a price. What about the impact on nearby town centres whose shops struggle to compete? Competition is a good thing of course; it keeps us all on our toes. But unfair competition, abuse of market dominance, is unhealthy and illegal. The Office of Fair Trading has recently investigated alleged anti-competitive practices by the big supermarkets. Their market dominance gives these multiples huge leverage over suppliers, which is why prices paid to farmers for many agricultural products has been too low.
I like to listen to people talking about the small local shops of yesteryear, the high quality butchers, grocers and bakers that many of our village and town centres used to have. But times change: we became so much more mobile, working and shopping further afield. The giant out of town supermarkets began to offer a wider range of products for a lower price all under one roof, and the rest was history. There is no turning back.

This all seems gloomy, but there is some light at the end of the tunnel. The supermarkets now are very alive to customer and stakeholder criticism. They are starting to source more and more of their products locally, trying to put something back into their community. They are beginning to pay a fairer price to farmers. They are aware of their impact on town high streets and are looking to be more supportive.

This has come about because of pressure from the public and media. We cannot blame supermarkets for giving us what we want. But we can keep them on their toes, both nationally and locally, to make sure their shadow does not cause all the other plants in the garden to die. Let your chosen supermarket know your views on these issues and see if they respond positively. If they don’t, shop somewhere

posted by Nigel on Monday, November 26, 2007