Small Business Worried By Number Of Supermarkets

Post by Sharat | March 10, 2010 | ASDA, Morrisons, Sainsbury's, Shopping News, Tesco | Comment

New data released by the newspaper the Daily Mail suggests that more than two fifths of towns in Britain have at least five supermarket outlets within a ten minute drive of one another.

The report suggests that 42 per cent of all British towns were in such a position, with some chains owning more than one outlet within a ten minute drive of one other. The finding has alarmed small business.

David Amess, Conservative MP and and chairman of the All-Party Parliamentary Small Shops Group is calling for a government inquiry into the supermarket industry.

Mr. Amess would like the government to investigate claims that supermarket retail chains are choking high street business.  Mr. Amess claims that the retailers, through the employment of high priced lawyers, are able to overturn decisions taken by local authority.

The rise of the supermarket in the UK contrasts significantly with the number of independent retailers, which has declined considerably from 500,000 in 145, to just 35,500 today.

The ‘big four’ supermarkets – Asda, Morrisons, Sainsbury’s and Tesco have captured nearly 75 per cent of the £80 billion grocery sector.

Add to the mix the fact that the UK entered recession in 2008, and the story for independent retailers has not been good, with more than 2000 going out of business last year.

The diversification of supermarkets into multiple consumer segments has made it even harder for small businesses to be successful.

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