Tescopoly
I co-wrote this piece in March 2011, with another student on my course Betti Hunter. It was one of our first longer pieces of journalism on the course.
As Tesco’s profits continue to rise despite the ongoing recession, we ask what the future holds for our traditional independent retailers?
Tesco recently reported a rise in half year sales, despite sales in the UK falling. “Excellent growth” in Europe and Asia was reported, and 3,000 price reductions in the UK were made by Tesco to try and attract new customers. With trading profits at £1.3bn, the global supermarket doesn’t seem to be struggling. But are Cardiff’s independent retailers struggling at the cost of Tesco’s profit?
Gareth Johnson, a member of co-op Hungry Planet on Clifton Street says, “It’s constantly challenging running a shop so close to Tesco because of the price differences. We cannot compete.”
The argument about whether or not large supermarket chains have a direct adverse effect on local businesses is not a new one. It seems everyone has an opinion on the reasons behind the apparent ‘death of the traditional high street’ and the startling decline in the amount of quality independent retailers. As little as 20 years ago the average Britons shopping experience sat in stark contrast to today’s current conveyor-belt culture.
Whereas previous generations were used to popping into a variety of shops selling speciality wares with a personal touch, supermarkets are increasingly turning to self-service machines and reducing human contact to a minimum. It’s an epidemic that’s being observed across the UK, and Cardiff is just one of many cities witnessing local shopping streets being transformed by the supermarket giants.
A Wellfield Road greengrocer, who wished to remain unnamed, believes the changes are for the worse. “It’s not good for local businesses, in fact, it affects everybody. They’re wiping all the small people off the face of the earth.” But is this shift in how we shop genuinely forcing Cardiff’s local shopkeepers out?
Gareth Johnson certainly thinks so. “This street used to be thriving. I’ve been living on the street for about 11 years, it’s been a thriving street and then all of a sudden it just crashed. Tesco opened up around the same time, so they certainly have an effect on independent retailers.”
Coincidence? Perhaps, but it does seem to be a recurring trend in Cardiff that as soon as Tesco moves in, so do a multitude of other chains. The number of Tesco stores in the Roath area is a case in point – four stores within a mile of each other, and all but one opened in the last five years. Since then, residents have watched as shops such as Greggs, Subway and Sainsburys have steadily replaced the family-run businesses that have characterised the main shopping streets for almost a century.
The sheer amount of convenience supermarkets opening in such a small area is worrying, and it’s something Gareth is only too aware of. “We’re kind of lucky because we have a sort of niche market because of our speciality stuff but to be fair, I think Tesco is in competition with every single person in the country, ranging from the individual house owner down to the shopkeepers. “
It’s not all bad news, however. Homemade frozen food specialists Cook have recently opened a small shop on Wellfield Road and believe that business is steadily increasing. Joint owner Karen Purchase isn’t convinced that Tesco’s expansion is having negative effects.
“I don’t think Tesco has any effect on local businesses, it’s just one of those shops isn’t it? Where everybody goes just to get their staples I don’t think it has any effect on my business. We are close to Tesco but we’re not in competition, we’re completely different, so if people want to shop in Tesco that’s fine, but people would choose to come here instead of Tesco.”
The evidence seems to suggest that the way for an independent retailer to keep their head above water in the current sea of change is to corner a niche market, offering a variety of choice in speciality products. Gareth agrees, and says “There are much better choice in independent retailers, much, much better choice in fact. Even things as simple as rice, the difference in quality between what you get in Tesco and what you get in proper shops is just phenomenal. And their vegetables, it took me a while to actually eat a carrot after eating supermarket carrots, because I didn’t realise that carrots actually had a flavour! It’s extraordinary how much difference there is in quality.”
And he doesn’t think it stops there. “By shopping independently you’re supporting your local community, every single penny that comes in here, the people who earn the money then spend the money in this community. Whereas if you spend the money in Tesco, then that money just get siphoned off to someone else, so it doesn’t sustain the local area at all.”
So what does the future hold for our nations independent shop owners? Both shopkeepers are remaining optimistic, and seem to think that adapting to the changes currently affecting the nation is the key to keeping local trade alive. Karen says “I hope the future for independent retailers is bright. One of the things that people complain about here the most is that the parking is difficult. So, maybe retailers have to start doing home deliveries or things like that. I think we are a nation of shop keepers, and I think we’ll probably end up remaining a nation of shopkeepers.”
Gareth’s potential solution is rather more radical; “I think the whole entire country is taking a bit of a shift at the moment, and I think we’ll slowly be moving away from the traditional business model and moving more towards smaller community-run businesses.” Essentially, he believes it will be more about creating a new kind of shopping experience, as opposed to returning to the pre-supermarket heyday, “I can see supermarkets always being around, because it’s difficult to kill a parasite.”
