Andeep Mangal: Vote with our feet to stop the giants
May 13 2008 By Andeep Mangal
On Monday, Tesco opened a new superstore in Aston, being the first of the largest supermarket chains to stake a claim in this part of Birmingham.
In its vast shadow is a typical Asian "corner-shop", Ashways Supermarket, where Mr Akhtar has been plying his trade for 16 years. My mother's enthusiasm at the arrival of the retail giant was tinged with sympathy for Ashways which, although she has never been to, would now surely suffer a severe downturn in trade and face possible closure.
Sympathy alone will not save these corner-shops which were once a key feature of urban and village life throughout Britain, and which were predominantly owned by hard-working immigrant Asians.
Whereas in times past, local shops were seen as performing a crucial role in bringing society together, these days shoppers don't care as much about community spirit.
Part of the success and increasing dominance of the Super 4 can be attributed to the changing face of our high street and the changing demands of the consumer.
Local shops can't compete on price or range the supermarkets accommodate our busy lifestyles and tap into our need for convenience in terms of both safe parking and our requirements to shop for everything, not just groceries, under one roof.
But the suspicion remains that some of this competition is unfair. In 2001, Tesco became the first supermarket to record profits of more than £1 billion. Last month they announced profits of £2.85 billion.
The other three large supermarket chains are also making hefty profits even now, despite warnings of an economic slowdown.
Between them, Tesco, Sainsbury, Morrisons and Asda control at least 80 per cent of the market. It's reckoned this will rise to 90 per cent by 2016. Tesco swallows £1 in every £8 spent in retail, has 1,608 shops and owns more than half of the country's potential supermarket sites.
A Competition Commission investigation admitted more competition was needed but added that even where one chain dominates more than 60 per cent of a local market, it still be allowed to expand.
On the other hand, the Office of Fair Trading says supermarkets broke competition law by fixing the price of milk, cheese and butter, at a cost to consumers of £270 million, has also condemned them for fixing the price of cigarettes and has launched an inquiry into allegations that food and toiletry prices are also rigged.
So, local shops are closing all the time as the Super 4 expand through the retail landscape. But it's not just corner shops. As supermarkets strive to cater for all of our needs, 30,000 fishmongers, greengrocers, butchers and chemists have shut down in the last decade.
And now communities face a further blow with the closure of 2,500 small post offices, which in some cases represent the last retail lifeline in many areas.
What impact will this suppression of retail activity on the high streets have? Whereas previously local shops used to help create vibrant communities, are these areas now becoming "ghost towns", less of a safer place for people to walk, and eventually become no go areas?
Has the government's policy of allowing the Super 4 to march on played an inadvertent part in the decline of our society? So how will this play out? Perhaps the high street isn't dead yet in many areas, consumers may be starting to realise that there are benefits to having specialist local stores on their doorstep.
Only by using them and voting with their feet and not necessarily with their wallets or purses will the advance of the supermarkets be checked. There might be hope for Mr Akhtar yet!
