Monday 10 December 2007

Supermarket War

This is not the first time I am writing about supermarket war. What do I mean by supermarket war is that big names like ASDA, Tesco and Sainsbury's are competing against each other for a slice of the cake in regard to food products and more recently, non food product within the UK and also EU. We also have to take into account Morrisans although they do not have a share like Tesco in the market but still, they are quite marketable.


I am not happy with the fact that UK Competition Commissioner is allowing big names in supermarkets like Tesco to dominate in every single city in the UK. What I am not suprised is that they do have the capabilities to open and sustain in opening a small Tesco store right up to a Tesco extra. My question is: what about other players in the market then? Why are we not giving other players a chance to come into the market? Why are we bowing down to Tesco? Can the government do something about it then?


Well, suprise surprise... Recently the UK Competition Commissioner raised its doubts in Tesco buying over a piece of land owned by The Co-operative Group in Slough. They were looking into whether Tesco have breached any of the competition laws but they could not find one. They would like to do something about it but they could not because they found Tesco was in line with competition laws.


I don't understand a bit here. Originally Tesco purchased the land owned by Co-op with the intention to use it as a place for storage but now, they want to demolish the original Co-op store and make it into a big supermarket! Ha! Are we surprised? Not really since Tesco might use their influence into making sure that their interests are secured.


Oh well, this is only an opinion which I don't think many people will take note of it. Well, what is the point of raising my opinion when consumer can buy cheaper goods from supermarkets, right? This is the competition which big supermarkets are talking about! Consumers are able to make their decision in to whether they want to buy their food and non food shopping from Tesco, Morrisans, ASDA or from any other supermakets. Consumers have many choices and so what is the problem here?


Well, the problem here is that with hypermarkets growing like mushroom, it will definitely drive smaller shops like family run shops out of the market. Please look at this and you will have some idea about what am I talking about. Are we not a caring society? Are we standing by to allow smaller shops to go out of business?


More could be seen here.

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