Are the supermarket chains too powerful?

[rolfw]

Been a few items on the news over the past week, referring to the strangle hold the big four supermarket chains have on the UK grocery market place, controlling almost 75% of it. Article Thisismoney.co.uk

Tesco, Sainsburys, Asda and Morrisons are the culprits in the UK, but I'm sure that there are similar problems in other European countries and the demise of the independent grocery, bakery and butchers is not confined to here. They are also trying to eradicate the Chemists, wine stores, record shops, book shops and clothes shops.

The Supermarket chains say that they are simply giving the customer what they want, value for money, but the suppliers say that the supermarkets are using bully boy tactics and that they are forced into funding the low prices, not the supermarkets.

Independent retailers, the small corner shops and convenience stores, already in sharp decline, are now facing attacks on a second front. These major chains, not satisfied with their 75% market share, are now opening up convenience stores, which benefit from the massive buying power of their parent companies, so how can the little businesses compete?

What does everyone think, should they be controlled? Are these companies really acting in our best interest long term? Will our choice suffer eventually?

 

[Llew]

Taking the case of Walmart in the US, I would consider them to be monopolistic, whereas in the UK (and perhaps Europe as a whole), we have a good spread of supermarkets, allowing aggressive competition between them, ostensibly maintaining lower prices, although as you say, they force the suppliers to sell significantly lower than would be the case with independent outlets.

I remember the days before the big ones came to town though, and our local high street shops, although service was more personal, choice was far more limited, and prices for basic things like fruit and vegtables could be whatever the shopkeepers could get away with, especially if they were the only one in the neighbourhood (remember the vast majority of housewives hadn't time to traipse around town to compare prices, and had to shop far more frequently than is the case in today's more mobile world).

Llew

 

[gameboy]

Watched tonight were one large supermarket chain had bought a site get permission to develop it then didn't developed it.

By doing this they stop other stores from opening in the area.

 

[adam2002]

Used to work for Tescos b 4 moving here for a better way of life. Had to stomach the tactics for an awful 18 months. Staff brainwashing, family destroying rotas, crap and misleading incentives, lying management and the real fact that you can be dismissed for being sick for three seperate days in a one year period. The company only cares about profit and has the same attitude about the public as it has for its staff. mushrooms, shit and darkness all spring to mind.:-bash