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    Are the big stores cutting their own throats ?

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    papa_umau
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    Are the big stores cutting their own throats ?

    Post by papa_umau on Wed 05 Nov 2014, 11:09 am

    The biggest problem for supermarkets? Their own convenience stores

    Tesco, Sainsbury's and Morrisons have eaten their own lunch by opening small high-street stores, data suggest

    The pressure on supermarkets in the UK has been driven by the leading grocery retailers opening small convenience stores across the country, new data suggests.

    Tesco, Asda, J Sainsbury and Wm Morrisons have effectively cannibalised their own sales and exacerbated changes in shopping habits by opening smaller, high street stores, figures from property agent CBRE shows.

    Read more on this story from The Guardian HERE




    I totally agree with this idea, as it seems strange for the big supermarkets to go down-town and to try to compete with the corner shops and the serious discounters when many of the people who might use these stores might have originally shopped at the big supermarket versions.

    Also, the cost of buying or leasing the property that makes up these small stores along with the extra staffing and overhead costs is likely to spread these shops too thin.

    This development is definitely worth watching.


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    zathrus
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    Re: Are the big stores cutting their own throats ?

    Post by zathrus on Thu 06 Nov 2014, 11:38 am

    Yeah, it must cost them a fortune to build and staff all those town-centre stores while they have to compete with the Asian corner shops and STILL keep running their out-of-town supermarkets at competitive prices.

    The words "spreading themselves too thinly" does come to mind here.
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    papa_umau
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    Re: Are the big stores cutting their own throats ?

    Post by papa_umau on Fri 07 Nov 2014, 11:49 am

    Well put Zath'.

    I will bet that a few months or years from now they are going to be forced to close these small town-centre shops again once they find that they simply cannot afford them.


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    Angie baby
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    Re: Are the big stores cutting their own throats ?

    Post by Angie baby on Sat 08 Nov 2014, 12:04 pm

    There is no way to hide that the big supermarkets are trying very hard to use their power to squeeze the discounters out of the game. If that does not need action by the watchdogs then nothing does.

    It is wonderful that the great mass of the shoppers are now aware of this and are using the discounters so that the big four are afraid of them.

    There is nothing I like better than seeing the weak coming out on top for a change.
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    papa_umau
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    Re: Are the big stores cutting their own throats ?

    Post by papa_umau on Sun 09 Nov 2014, 12:02 pm

    Yes Angie, and this "them and us" stance that the big supermarkets take is turning a lot of shoppers against them.

    I would have thought that they might have worked hard at keeping the customers they do still have, on side, rather than alienating them.


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