Supermarkets and Underserved Markets

[LuvPeckham]

Today (30th April 2008) the Competition Commission released their long overdue report on "GROCERIES MARKET INVESTIGATION" (see their Press Release for details or the Full Report if you want to dive into the details.

There are elements of this report that are good (OFT involvement, Code of Conduct and action to prevent land agreements plus better support for suppliers and the supply chain.) However one element is open to potential problems in the future.

This is the "recommendation for the inclusion of a ?competition test? in planning decisions on larger grocery stores" which put simply means that should a supermarket be dominant in an area (as Sainsbury?s potentially is in East Dulwich and Morrison?s potentially is in Peckham) then (in theory) the area can be opened up to other supermarkets to ensure fair competition in the area as an underserved market.

This concerns me, that should another supermarket want to build in the area (and if land is available) then there is almost a mandate from this report that will allow it to happen, despite the fact that competition in the area may well already be provided by local smaller shops that won't be able to survive should another supermarket be introduced into an area.

At the moment, I don't think there are any plans by any of the big 4 supermarkets to build locally, nor is there the landbanks available (at this juncture) but is this something we want / need in East Dulwich or Peckham ?

If not maybe we should all be inputting to the Area Action Plans that are being developed at the moment by Southwark Council.

The Peckham Area Action Plan under discussion at the moment identifies some large development sites that could potentially be used by a large retailer, thus adding even more competition to the fragile market

Would be interested (in my professional capacity) to hear your thoughts and views on this report, and what as a community we should be doing to safeguard the smaller independent businesses in Southwark and London.

Many thanks

[Michael Palaeologus]

Does Sainsburys' dominate ED? Its not in ED really - its on Dog Kennel Hill. I suspect that most people who go there drive so can also go to Morrisons, Tesco and Asda or trot up and down Lordship Lane or even go to Borough Market.

[LuvPeckham]

It would be considered to be the dominate supermarket for the area based on its size and vicinity to lordship lane

[Michael Palaeologus]

By whom?

[spadetownboy]

me.

[Michael Palaeologus]

Oh well, thats it then, case closed.

I worry that people make definitive statements without backing up their points with some facts.

[Ant]

If you asked me where's the supermarket in ED I'd say that Sainsbo's. And if you asked me to think a bit more I'd say Somerfield. I wonder how many people would answer the same if asked.

[spadetownboy]

me

[KalamityKel]

I'd prob say something along the lines of "depends what you're wanting to buy" then follwed by... Sainsbury's for almost anything, especially if you don't mind the poor quality of the fresh food department. Somerfield if you only need a few ingredients for dinner or uve run out of cereals/milk/bread etc and don't forget Iceland for quick frozen meals and kids party food. :))

Did I miss anything?

[Ant]

I totally forgot about Iceland!

[Cassius]

Very easy to forget about Iceland - I do it all the time.

[Michael Palaeologus]

I dont think Easyjet or Ryanair fly there yet - so its quite pricey to get to. People therefore tend to forget Iceland.

[LuvPeckham]

Cassius Wrote:

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> Very easy to forget about Iceland - I do it all

> the time.

Obviously you aren't a Mum otherwise you would go to Iceland !!!

In response to Michael asking by whom... by the planners / developers should they choose to try and site another supermarket on our doorstep... whilst I agree that there is a good choice within driving distance, within walking distance Sainsburys is considered our dominant one from the big 4 for ED...

Imagine if we lived in a small village with a nice high street and, according to the report published yesterday, a supermarket could justify building nearby on the grounds of 'competition' rather then need... could make hugh changes across the country in terms of small shops vs supermarkets

[KalamityKel]

Seriously is there any need for another supermarket? REALLY?

[lozzyloz]

I don't think a huge supermarket would be economically viable in a small village. I can think of instances in the countryside where an out of town hypermarket serves several villages and towns quite successfully where the village Post Office shop just doesn't cater for all needs.

[LuvPeckham]

KalamityKel Wrote:

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> Seriously is there any need for another

> supermarket? REALLY?

The short answer is no, however the Report does provide a conceptual way of another one coming to areas where they are only served by one of the big 4.

[Michael Palaeologus]

Oh, its a CONCEPT.