Here is a picture of a small retailer that has recently opened near where I live. As you can probably guess from the picture, this is an independent newsagent/grocers. Based on your experience with similar retailers you can probably infer what categories of products it sells. There will be newspapers and magazines, a plethora of chocolate bars. Cigarettes and some alcoholic drinks will be on the back wall. A limited number of shelves will stock common food and household items – detergents, snacks, soft drinks in a branded refrigerator. It seems a reasonable guess that this is a family business.
I visited this shop a couple of weeks ago. Products were reasonably priced, the physical environment was basic but clean and the service was prompt and polite. I have no doubt that the people running the shop are dedicated, committed and will work hard. The area in which it is located is very near to the city centre and sees a lot of foot-traffic through the day, and of types of people that are quite likely to want something this shop offers.
So then – this is going to be a successful small business, one of the many hundreds of thousands of its type across Europe that trade, providing convenience to millions of customers and contributing greatly to employment, social mobility and economic development?
No. This shop is a Dead Man Walking. It was dead before it ever opened. I’m not sure how long it will last, but I will be surprised if it is still there in a year, and amazed if it is still there in two.
Why am I so sure? The answer lies mostly in what is happening on the other side of the street.
And there we have it, the cause of death. Colonel Mustard, on the High St, with the metaphorical lead pipe. If you are in the UK, you have a Tesco near you. You probably have several. Notice those were statements, not questions.
Why is this Tesco going to kill our retail David? Let us consider a few of the reasons, and this list ends when I get bored of typing, not because I’ve run out. If you disagree with me – put yourself into the position of someone walking along the street in need of something trivial – your lunch, a newspaper, some cigarettes, a lightbulb.
Which of the two is going to have the best prices? Which the best range of products/number of choices? In respect of fresh food and vegetables, where will quality be higher? Which shop is likely to offer you everything you want in one stop? Which is most likely to be open early in the morning or late at night? Which will have full rather than empty shelves. If you are in a group of people, where will everyone automatically go without negotiation. Which is most likely to accept your credit card.
In short – what can the small independent retailer do better than Tesco, when considered from the perspective of the customer?
What has just been described there is a very local issue. Nationally, this issue of larger companies beating up the little guy is of social, cultural and political importance. The BBC webbie has a news story on this topic today, in support of a programme this evening [1]. If you read the story, be sure to look at the attached graphics and perspectives from local residents, farmers, small business owners and unions[2].
This particular Tesco has form – the previous enterprise in the space now occupied by our poor little newsagent was previously occupied by an off-licence, selling alcohol. They went bust, and I think we can probably guess why.
I take no joy in my prediction. I have no reason to think the newsagent is owned and run by anything other than decent, hard-working people. I hope there are not bankruptcies, I hope there are not divorces.
Merry Christmas!
I am wondering if it is still there since it has been nearly a year
ReplyDeleteJing - see this news story!
ReplyDeletehttp://www.bbc.co.uk/news/uk-scotland-glasgow-west-16467535