Page 59 - Phonebox Magazine June 2009

Store Wars!
An observation by Steve Clark
It seems that barely a day goes by without some mention of the retail giant Tesco in the local and national media. However, Tesco’s
quest for global dominance seems to be getting somewhat derailed by an increasing number of campaigns that are challenging their somewhat aggressive growth. An attempt by Tesco to double the size of its store in Wolverton has recently been blocked after the Development Control Committee of Milton Keynes Council refused planning permission against the advice of planning officers. In Newport Pagnell we have seen a well- organised campaign aimed at giving Tesco the clear message that their plan to develop a store on the former Aston Martin Lagonda site in Tickford Street is not welcomed by most of the current traders. In this case I would imagine that planning officers will be able to construct a robust case for refusal that will not lead the elected members to ignore their professional opinions. Further afield there have been sustained campaigns to prevent Tesco opening stores in such places as Mill Road in Cambridge and in the Norfolk resort of Sheringham. In most cases, objections centre on the perceived effect that new stores would have on existing retail outlets.
Tesco already has by far the largest market share of the ‘big four’ supermarket chains, although this has shown a slight fall from 31.1% down to 30.6% in recent weeks. Despite this, Tesco still enjoyed a pre-tax profit
of £3.13bn, with sales topping £1bn per week. These profits are the highest on record for a UK retailer. They are also the largest private sector employer. Unfortunately the relentless growth of the ‘big four’ supermarkets, the others being Asda, Sainsbury and Morrison, comes at a high price. The constant pressure to force down prices may well be of tremendous benefit to consumers but can be very bad news for those who produce the products on sale in the stores. For example, it just isn’t sustainable to sell food at a price which is less than the cost of producing it. Surely this approach can only result in the driving down of quality and standards?
Whilst not wishing to pick on Tesco alone, it does seem that the dominance of the major supermarkets has led to a very fragile situation for producers. As Guardian correspondent Felicity Lawrence observes in her book “Not on the Label: What Really Goes into the Food on Your Plate” (ISBN 0-141- 01566-7) ‘We no longer trust what we eat. We lurch instead from food scare to food scare while farming is in crisis around the world.’
Price is clearly a factor when people are choosing which foods to buy and where they will buy them. The serious downturn in the economy has meant that many families have to keep a very close eye on their budgets, and supermarket price wars must seem like very good news indeed. Unfortunately, the recession has adversely affected sales of organic food in the UK which had been performing well. The Soil Association’s Market Report 2009 showed that organic
food sales grew by only 1.7% in 2008, following more than a decade of sustained growth. British sales of organic food in 2008 were over £2.1bn, but this is very modest compared to the sales of non-organic produce.
There are some retail chains which are less aggressive in their outlook. The Co-operative group took the decision not to attempt to compete head on with the ‘big four’ but to concentrate on smaller stores in local communities, an approach which was much more in keeping with the values and principles of the founders of the movement. The Co-operative group has been a long time supporter of ‘Fairtrade’ products and ethical sourcing. Additionally, the real strength of our traditional town centres has to be the range of smaller, independent, retailers. Both Olney and Newport Pagnell are fortunate in having a good range of excellent shops which offer a good range of produce at fair prices. The arrival of a Tesco Express store in Olney doesn’t seem to have had a detrimental affect on the existing retail outlets. The shop also appears to blend in quite well with the Conservation Area. Had Tesco tried a similar approach in Newport Pagnell, I am sure their efforts would have received wider support!
Links:
Email: stephen.clark89@yahoo.co.uk or steve@mklibdems.co.uk www.stephenclark.mycouncillor.org.uk www.tescopoly.org www.tnsglobal.com www.fairtrade.org.uk
Phonebox Magazine 59