There are a lot of sites on the internet about Tescopoly or generally are anti-Tesco or attack supermarkets in general. Now I personally do believe that a balance needs to be made and that local governments need to ask the populous on these issues, but some of these sites push people with a one sided story. One that, perhaps, intends makes people against the building of supermarkets in general. In addition, I believe some of these sites are incorrect, as they do not show the full story due to the vested interests of their supporters. Now, I feel some counter arguments need to set down.
First, on the monopoly aspect of Tesco itself, a key feature of the book Tescopoly; however, Tesco is not yet a monopoly, it is actually far from one. They are projected to own 38 Per cent of the market by 2010. There is nothing wrong with Tesco's growth, as The Scotsman points out:
But independent observers argue that Tesco has done nothing wrong. Nick Bubb, analyst at hedge fund stockbroker Pali International, says: "For the Competition Commission to turn round and say the pipeline acquired by Tesco should be taken away from them - when Sainsbury were distracted by all their problems and when Morrisons were distracted by Safeway - would be outrageous. It's not Tesco's fault that Morrisons had a problem with Safeway and Sainsbury ran into problems before Justin King [chief executive] came along in 2004."
Now, for the arguments against those put down by anti-Tesco groups. First, I would like to make some points against those laid out by <a href="http://www.tescopoly.org/index.php?option=com_content&task=view&id=781&Itemid=101"Belper Against Tesco Superstore. I currently live only ten miles from Belper and know the area reasonably well.
1. Belper Against a Tesco Superstore (BATS) campaign group was launched at a packed public meeting on 24th May 2007 at the Lion Hotel. Nearly 200 people attended the meeting to voice concerns over an anticipated planning application from Tesco.
For a town of around twenty thousand, this represents a single per cent of the population. Thus, one can conclude that only a minority that oppose the site, and is probably one loaded with vested interests (local traders.)
2. The BATS campaign group is particularly concerned about the effect Tesco could have on Belper's small retailers.
Obviously, if you do not know Belper you might think a Tesco superstore would have a major effect on the towns small retailers. Well, in my view it would not have much of an effect, if any at all. Why do I have this view? For one simple reason, Belper is actually saturated with Supermarkets. It is a town of only twenty thousand, yet it is host to three large supermarkets: Somerfields, Morrisons, and a Co-operative. In addition, it has a small Tesco, a Tesco Express. If the fact that there are already three supermarkets does not place any strain on the smaller stores, then a fourth should be of little worry.
3. Belper is a small town with a pleasant high street and many small independent retailers.
Shame they forget to mention the three large supermarkets already in the town.
Now I shall move on to some of the more general points made in books such as Tescopoly and other anti-supermarket publications.
1. Supermarkets kill off smaller retailers and the high street.
High streets and smaller retailers can survive, they just need to adapt. Non-food retailers will always offer more choice and specialist products to the customer, this choice should enable them to compete. Food based retailers do have to adjust, but can still compete. They have to offer what the supermarket does not -- local produce. With the current backlash against the large retailers on this issue, they should find custom. By selling quality local, perhaps organic, goods at higher prices they will seal a niche in the market as their own.
To compete on price would be a major folly, they do not have the spending or advertising power to do so.
2. Supermarkets hurt local economies by not selling local produce and hurt the environment by their food mileage.
The local matter is pretty much covered above.
The supermarkets do not offer local goods for a reason -- cost. It is all well and good to promote this cause, but it has one problem, one that hurts our environmental concerns too. The public will only want change if it does not impede on their own quality of life. Local food is more expensive, by offering it -- and for sake of argument offering only it -- prices will rise and the majority of the public will be deeply enraged by this. Even if the supermarkets did offer local produce they would push the producers profits down by pushing for lower prices, and by offering local goods they would remove the local retailers only niche.
One the second point, supermarkets are environmentally conscious. They desire to have a positive public image and will strive lengths to obtain and maintain their image. I doubt you will find a zero carbon local retailer. Food miles are a problem, this is something the supermarkets will need to look at, and will if the media push this problem to the public with full force.
Some other points to consider
1. Supermarkets offer greater employment opportunities. A large Supermarket will create hundreds of jobs and the building of the store will create even more jobs. Supermarkets create and sustain more jobs per square foot than local stores.
2. Supermarkets offer us lower prices, without them our weekly spendings would increase and the poverty line would increase. I do not know about you, but I do not like poverty :)
3. Local stores often are nepotic in their hiring, preventing those who are more skilled at gaining jobs.
4. Supermarkets often plough large amounts of money into the regeneration of the local area. Usual projects would include bypasses; increased parking spaces; new and improved public services such as schools, fire stations, hospitals, football stadiums, bus stations, and so on; new housing, etc. These regenerative projects would not take place without them. Where I live it has taken 17 years for us to get a bypass, and it was due to a supermarket that it finally got built.
Let me again point out that I do believe more regulation is needed. Local governments in conjunction with local residents need to decide whether they need a supermarket. Some areas are already being saturated if new stores are blocked in these areas the supermarkets will look to areas that do need them and wish to reap the benefits of them.