nickshanagher

Originally published in May but given to me in a free taster issue handed out last week, the Economist has formed the view that supermarket-bashing is "elitist and muddle-headed". Its target is the Tesco bashing where the opening of a new outlet coincides with the closure of local shops. The political response from David Cameron and Ed Miliband was to "bring back the bustle to our high streets" and "people think the character of their local high street is being changed and they have no power against big corporations" respectively. What will happen? Nothing suggests the Economist, pointing out that the Competition Commission found in 2008 that the grocery market represented a good deal for consumers. The business magazine goes on to question how new the problem is, pointing to research from Surrey and Exeter universities that shows that as far back as 1939 chain stores and co-ops controlled half the market (up to two thirds today). And it shows that...

The Financial Times has covered the success of the Eurocash wholesale operation in Poland, a country where independent shops still retain a remarkable 40 per cent share of the grocery market. "Shopping is not entertainment. Buying yoghurt and iPods in a single shop is not convenient for customers. You need quality shopping close to home," Luis Amaral, the Portuguese owner of the wholesaler, tells the newspaper. It is clear from this that Polish shoppers are not UK shoppers, who regularly put undergarments into the same trolley as their raw poultry. However, one reason why Polish local shops do well is said to be the poor state of roads in Poland, which makes travelling to a hypermarket difficult. This impact may transfer to the UK as the price of petrol soars and councils cut road maintenance budgets. Another is that 25 per cent of Poles shop daily and find it easier to go to a neighbourhood shop. The multiples have opened neighbourhood shops but the independents compet...