Not a vote, but are you for or against more supermarkets?

[OpenMind]

We need bigger, better supermarkets

By James Bartholomew

(Filed: 16/02/2006)

Supermarkets - dontcha hate 'em? Lots of people certainly do. They are said cruelly to squeeze the prices of worthy, red-faced farmers. They then apparently overcharge us consumers so we pay higher prices than we would have to in other countries. (The phrase "rip-off Britain" is often deployed at this point.) Supermarkets impose ugly buildings in cherished town centres or they destroy centres with out-of-town stores. They muscle in with lots of money, bribing councils to do their bidding. They are big, ugly brutes.

On the other hand, there is the embarrassing fact that we nearly all go to them. Supermarkets are disparaged, insulted, resisted and scorned while, at the same time, being enthusiastically embraced. Supermarkets make the hypocrisy meter spin wildly.

It is part of this hypocrisy that a committee of MPs has recommended there should be a "retail tsar" (perhaps "retail commissar" would be more appropriate) to represent smaller retailers against supermarkets. You can bet the committee consists of supermarket users to a man and woman. They oppose them for a few votes and then head off to the nearest Tesco.

Politicians and, indeed, some newspapers try to make themselves popular by embracing a culture of complaint about supermarkets and avoiding telling the truth about them.

Of course supermarkets squeeze prices. All good businesses squeeze the prices of suppliers if they possibly can. If politicians and newspapers don't know this, they should get out more. This is part of how businesses survive in competition with each other. It's part of how companies come to produce the best possible products at the lowest possible prices.

If it sounds too brutal, consider the other side of the equation. Food represents a far bigger part of the budget of the poor than of the rich. Low food prices are a vital "good thing" for poor people. Consequently, the construction of supermarkets benefits the poor most. Opposing supermarkets may be in the interest of shopkeeper lobby groups. But it is not in the interest of people in general.

The second objection is that supermarkets still overcharge, despite their "oppression" of farmers, compared with shops in other countries. The Government knows the reason for this, even if most commentators appear not to.

When it came to power, the Government commissioned McKinsey, the management consultant, to look at the issue. The answer? We pay higher prices because British supermarkets have been so hemmed in by planning restrictions that they are much smaller than stores in France and the United States.

The average French supermarket is 50 per cent bigger, even without including the vast clothes selection many also contain. American supermarkets are 90 per cent bigger. Extra size means economies of scale, which mean they - and their suppliers - can gain economies of scale.

The savings are passed on to consumers - not through kindness but because of competition. Prices are lower abroad because supermarkets in certain countries are less opposed.

They can get planning permission more easily, they can build bigger and so they can sell more cheaply. There is no "rip-off Britain". The return on capital of British supermarkets is no higher than those on French or American supermarkets. They are just smaller.

Of course, the Government could point this out, but it is easier not to pick an argument with the outraged citizens of north Sudbury and its like.

But supermarkets ruin the character of town centres, don't they? Think of poor old Woking. Poor old Basingstoke. But it is not merely the supermarkets, but the complete, ghastly redevelopments of these once charming towns that have spoiled them.

These sad despoliations are more the fault of town planners than the supermarkets. The real issue is the terrible state of town planning in Britain.

Planners feel caught between two ideas, both of them subject to angry objections. Either they get accused of ruining historic centres by allowing supermarkets inside or else they let supermarkets build outside and, it is claimed, empty the town centre. That was the argument of John Gummer, a once-prominent Conservative minister who made a lasting difference to policy by turning against out-of-centre developments.

Actually, such developments often work very well without destroying centres. Winchester has a big area of supermarkets, electrical stores, builders' merchants and so on a little away from the town; the historic centre remains in pretty good shape and popular, too. Over in Aix-en-Provence, there is a vast hypermarket I am partial to with wonderfully low prices. The town centre remains charming and crowded with people.

Yes, certain shopkeepers lose out when supermarkets are built. But other shopkeepers take their place. The butcher and baker may go, along with the timber yard. But high-quality delicatessens, boutiques and cafés take their places. The high street evolves. Shopping is changing and in a way that suits most people most of the time.

With supermarkets, as well as getting lower prices, you also get enormous convenience, wide choice and, especially if it is out of town, easy parking. This is clearly attractive to huge numbers of people. Why should they be stopped from getting what they obviously want because of particular shopkeepers?

Building supermarkets should be made easier, not more difficult, but our whole planning system needs an overhaul. We may not want to spoil historic palaces, but there is a valued place for supermarkets. We simply need to be more like France in the use of generous development zones, which provide for them.

© Copyright of Telegraph Group Limited 2006.

[weeder]

Funny you should bring up this topic... A new supermarket chain has just hit Virginia. Martins. Two are opened, three more to open soon. Their marketing tactic is... burying walmart. The population here has talked about nothing else for the past two weeks. Grand Openings, give aways. The parking lot is so crowded people have to leave, its incredible! Ill take going to a little farm stand to pick my tomatoes and corn, and lettuce.. thank you. I live in farm country, and only over the past 10 years have gotten some insight into their hard way of life, and how impossible it is for them to survive. On a similar note.. Regarding sheep farmers.. It costs more per sheep to shear one, than what the wool brings in per pound. Hello Acrilic!!

[OpenMind]

I have yet to make a decision. At the moment, I am dependent on supermarkets. The article is worrying, though. They are apparently also taking over our corner shops. They are simply ruling the economy.

[robinseggs]

The U.S. is buried in supermarkets. I remember being in Europe and loving how quaint everything was...no big Walmart to crap everything up!! I sadly admit though, I don't know what I would do w/out a Walmart or my giant grocery store. Recently we booked a house rental for vacation and the description read that there was a Walmart 12 min. away. My mom/I both laughed and said "THAT'S the place!! Book it!!"

[weeder]

I try very hard not to go into Walmart, or large supermarkets. I love supporting small independantly owned businesses. But when money is tight... its difficult to pay double for a tube of toothpase, or a gallon of milk, just to satand on principles.

[robinseggs]

Weeder...totally agree with you. I actually prefer the little places too. But somehow with 3 kids in tow the supermarkets become more convenient. Often little places don't have carts, the lines are longer and it's frustrating when things are sold out!!

[OpenMind]

There's not much I can do where processed food is concerned, like baked beans, olive spread, and so on. I shall stick to the supermarkets for these as the local shops are too expensive. But there are local stores that sell locally grown produce. I've been meaning to check them out for ages. Now is the time (well, not right now, they're shut for the evening).

[chrisb84uk]

Sadly you are all right, all the big high chain mega-stores are slowly taking over towns and cities everywhere. If my memory serves me correctly they took a test on some consumer program on tv recently, where they compared how many people visited Tesco or the local shops across the road.



The result was staggering. Despite costing a lot less than Tesco's, (and in some cases better food I'm sure,) only around 10 people went into the local shops that day, compared to the thousands that shopped at Tesco's.



You really do have to feel for all these small independant shops, and even the market places around the UK are being threatened by take-over stories all the time. Now don't get me wrong I have nothing against big chain stores, but it does seem that at this rate they are going to take over the world.

[erasamus snoggle]

A well run supermarket is a delight to visit. Locally we use a chain called Publix. Very clean, well stocked, and a generally pleasant & responsive staff. In this general area, the independent grocers tend to be ethnic and are more like specialty shops.