Supermarkets - a losing battle?

Supermarket dominance of the food sector is not new, but occasionally one is reminded just how far things have gone – on popping out in the evening to buy some wine (with apologies to those with ethical concerns over alcohol) I thought I would go the local(ish) off license, which on arrival I discovered had ceased trading.  The choice was then a large Tesco store, a small Tesco store, a Sainsbury, or I could go a bit further to a One Stop, which… is also owned by Tesco.

Recent news has highlighted  that many UK towns have five supermarkets within 10 minutes drive - Ethical Investors is based in Cheltenham and things may be particularly skewed here, with one newspaper giving our town a special mention, pointing out that 120 butchers shops have been reduced to 4, and 25 fishmongers reduced to zero, since 1960.  Supermarkets are all about choice but only when you are in the door.

Many people wonder how the supermarkets can manage to have so many offers, continually beat each other on price, and be oh so cheap, but also manage to boast billion pound profits.  Tesco operating profit was £3.2bn in 2009 (year ending 28/02/09).  Supermarkets must be doing something right, but I think few would agree that total domination is a good thing.

It was not my original intention to have another pop at Tesco – there are internet sites dedicated to the cause.  But I have begun to wonder if this is a battle lost, because in a lot of cases there is no other choice but to go the supermarket.

That said, perhaps hope remains - in our local area the closest convenience store has recently been taken over and will re-open shortly.  On the same high street is an independent butcher that re-opened last year which seems to be weathering the storm.

A final thought, what if independent businesses were given as much support as the banks have been given over the last year or so…

Postscript - shortly after writing the above, an interesting article on a similar theme was published in the Independent highlighting a supermarket battle in Sheringham.  A link to the article can be found below:

www.independent.co.uk/news/business/analysis-and-features/sheringham-man-steams-over-tesco-goliath-ndash-for-now-1920908.html