If we think Coles and Woolworths have too much power then we’ve seen nothing yet. In the UK, the major supermarkets each have successful local store models which are challenging the existence of local family-run businesses in high streets.
Check out the story from Get Surrey about how a local newsagent is fighting to stop Tesco Express opening in Farncombe.
I have been in several Tesco Express outlets this year. They are impressive, unfortunately.
The Tesco Express businesses are a big success, delivering a professional convenience model to local communities and offering a national outlet for suppliers of food, grocery and publishing lines. The big companies love these outlets because of their consistency.
The Get Surrey store speaks to the small shop difference:
“Little shops are the backbone of the community and now Tesco want that for themselves,” said Manisha Thaker, a long-time friend of the couple and customer at the store.
The challenge for local communities is that these outlets kill off local traditions, stories and connections. They ship more dollars out of the local economy.
They are, in my view, soulless shops.
Once Coles and Woolworths get over their hardware fight and settle in ann expanded fuel network, look for them to go after main street Australia … if they are not there already.
This is why our businesses need to be relevant, strong and ever changing.
With the EFTPOS changes which gave both Woolies and Coles a massive market advantage over the rest of the retail sector I wrote to both Alby Schultz Local Federal liberal MP and Federal (NSW) Senator Bill Heffernon (using the ANF supplied letter). From both the response was the same press release cut and pasted. It consisted of 4 pages of adjectives on Julia Gillard and half a page of adjectives on the Labor Party (not what my letter was about). The 2nd last sentence in both cases said the Banks would give cuts in fees elsewhere. When I approached my Bank Manager and asked for these cuts the response was great gusts of laughter and a request for a copy of both responses for the entertainment value of Bank employees. When the Liberals will not support retail on that issue what can we do (though I have not given up).
It is big business that pays donations to the Liberal Party not small business (we can not afford to). Labor it appears also prefers Big Business to small business as its IR policies are far easier to enforce on Big Business rather than a host of small businesses and they also stand a greater chance of donations from Big Business rather than small business.
The ACCC answers to its political masters wants and needs and not the community.
Our retail industry in his country is now effectively a duopoly and yet neither party is prepared to do a thing.
Alby Schultz now no longer gets the paper delivered by me as I started to tell all customers who were interested, about the EFTPOS changes and his response. Highlighting Alby did not answer the letter he was sent rather reply with crap that was unrelated and point out to customers that Alby supported this advantage given to big business over small.
One Sunday one customer to whom I gave my speech reported it to Alby word for word. Alby then rang me and attempted to get stuck into me about it. I told I did not like what I saw done and held him partially responsible. As a result he stopped his papers and now buys them from a sub agent from which I make more money than if I had delivered.
The situation with the concentration of Market power to create a duopoly is unacceptable yet neither major political part and as a result the ACCC obviously see no problem with it.
I do fight Woolies on service and range on offer also using loyalty schemes and other techniques.
What can we do to highlight this situation and hopefully prevent the further increase of Market power by this duopoly.
Nice post Peter.
To be honest I am unsure where the answer lies, as you noted we cannot rely on our elected officials or regulators to even acknowledge what is happenning. If I were to continue in our channel I would join and be a part of a Marketing Group particualrly in central & Regional areas, this will not automatically save one from getting swallowed up however I have no doubt it would help.
If our industry could think outside the traditional, I would have no qualms of Highlighting all the positives Newsagents bring to the community whiles our Government ignores small business in a ver proffessional advertisement campaign, letter writing as we can all see is music to some peoples ears, we need to expose this purposely driven anti small business publicly.
On Further reflection what can we do about this? I have had an idea.
On you front window offer each candidate in your electorate space (say A2 Poster) for a month before the election with the chance to put there what they will do for small business with space below for the Newsagent and other small businesses to comment below it. If a candidate does not wish to comment then this also be displayed.
Then allow/encourage your customers to provide some form of feedback on the candidates comments within store with the better comments again placed below the applicable candidates poster in the window. It is essential to involve your customers in it, otherwise I think there is little or no point to doing it as it may just be seen as the newsagents comment only.
The best comment from a customer may win a years subscription for a Magazine for 12 months or a $ value for a newspaper subscription.
This may mean you loose your front window for promotional purposes for the time period involved. However if it influences things in favor of small business then it is a success.