>>independents must not shirk the difficult decisions
The results of our poll of Londis members over the future ownership of their group is very revealing - and clearly show its retailers are split on the question of whether the directors were right to opt for a sale instead of soldiering on as a standalone group [see p4].
These polarised views are also reflected in the letters I have received from retailers responding to my column in last week’s issue in which I said independents were having to make some difficult choices in what is now a very tough world.
The OFT’s decision to let Tesco acquire Adminstore only serves to strengthen my argument. Unless someone in government has the nous to challenge the regulator’s lunatic decision to treat food retailing as two markets, you can expect plenty more acquisitions as Tesco presses on with its plan to open 1,000 of its Express convenience stores. As we report on page 31, researchers at Verdict think that Tesco will be vying with Spar to become the country’s top c-store retailer within a few years. I don’t necessarily agree - after all, Spar isn’t exactly rolling over and letting that happen: it too is expanding. But when you consider Tesco’s growth plan, the ongoing expansion of the co-ops and the fact Sainsbury has now embarked on the acquisition trail, I do agree independents are facing huge challenges.
But while many retailers are selling out or shutting up shop in the face of these competitive threats, we should not forget that plenty of others are thriving. They know their customers, have a strong position in their local community and run great stores that serve people well.
If anything, the industry is guilty of not doing enough to celebrate that (which helps explain why the national media still, even today, refers to independents in terms of ‘corner shops’ and Arkwright stereotypes). That’s why the day of action being organised by the FWD is a great idea - its aim is to remind the public and politicians of the outstanding job being done by these retailers.
Of course, as the competitive pressure mounts in the c-store sector, even the best retailers will find it hard to prosper. Yet we remain confident that the industry will always have a thriving independent sector - as long as retailers take the decisions that will inevitably come their way. But nobody says these decisions will be easy. Just ask Londis and its retailers.
You are great, now flaunt it
The results of our poll of Londis members over the future ownership of their group is very revealing - and clearly show its retailers are split on the question of whether the directors were right to opt for a sale instead of soldiering on as a standalone group [see p4].
These polarised views are also reflected in the letters I have received from retailers responding to my column in last week’s issue in which I said independents were having to make some difficult choices in what is now a very tough world.
The OFT’s decision to let Tesco acquire Adminstore only serves to strengthen my argument. Unless someone in government has the nous to challenge the regulator’s lunatic decision to treat food retailing as two markets, you can expect plenty more acquisitions as Tesco presses on with its plan to open 1,000 of its Express convenience stores. As we report on page 31, researchers at Verdict think that Tesco will be vying with Spar to become the country’s top c-store retailer within a few years. I don’t necessarily agree - after all, Spar isn’t exactly rolling over and letting that happen: it too is expanding. But when you consider Tesco’s growth plan, the ongoing expansion of the co-ops and the fact Sainsbury has now embarked on the acquisition trail, I do agree independents are facing huge challenges.
But while many retailers are selling out or shutting up shop in the face of these competitive threats, we should not forget that plenty of others are thriving. They know their customers, have a strong position in their local community and run great stores that serve people well.
If anything, the industry is guilty of not doing enough to celebrate that (which helps explain why the national media still, even today, refers to independents in terms of ‘corner shops’ and Arkwright stereotypes). That’s why the day of action being organised by the FWD is a great idea - its aim is to remind the public and politicians of the outstanding job being done by these retailers.
Of course, as the competitive pressure mounts in the c-store sector, even the best retailers will find it hard to prosper. Yet we remain confident that the industry will always have a thriving independent sector - as long as retailers take the decisions that will inevitably come their way. But nobody says these decisions will be easy. Just ask Londis and its retailers.
You are great, now flaunt it
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