Every Little Helps (build your supermarket empire)

There was no surprise that this week when it was announced that Tesco has now amassed profits as large of £2.55 billion. There is no sign of it stopping either as they look to expand the business and go multinational, supposedly in Japan and the States. Tesco is now the UK's biggest retailer and their market share dwarfs the share that Asda, Morrison and Sainsbury's have, despite a small increase for them. If you are vigilant in watching supermarkets pop up all over the place the Tesco revolution will be familiar to you. What I consider to be more interesting is the meteoric rise of Tesco and how they have proven to be a lot more ruthless in what resembles a quest for world domination.

It is not just this announcement which has provoked a post from me today. The Echo recently featured a piece on how two Tesco shops (one Express and one Metro, supposedly makes all the difference) which are no more than a mile apart charge different prices on certain items like bread and milk. This aspect is not new news to me - I once watched a Trevor McDonald 'Tonight' programme on the rise of the supermarket juggernaut on how Tesco says local, smaller shops have to charge more money for some goods due to different costs in running the stores, i.e. lighting, rent, etc.. Which means that even though you may have a Tesco Express near your doorstep, don't necessarily think you will get Tesco prices. But what worries me is the sheer monopoly Tesco has this Western area of Cardiff - where three stores operate, in addition to two of those stores being on the same street. Is there any point of having these stores so close together? No - it is just complete exploitation of the area and will surely have an effect on the small businesses which strive so hard to survive despite already tough competition from Somerfield. On a national scale other examples of Tesco's choice of location have been known to have giant superstores closer together, which again borders on the region of pure greed. The reason why £1 out of every £7 pounds you spend on the high street goes into Tesco's piggy bank is that they have now conquered the superstores, but they make sure they stay dominant in the towns and recently, in the suburbs and mini shopping centres in the likes of Grangetown and Whithchurch.

Some might say fair gain. If there is an empty space in the high street which could be better off giving the locals their morning paper, then why should anyone object to it? Tesco in competition with the other supermarkets will always give the customer the benefits - as they play off each other we stand to gain from the price war carnage in the shopping aisles. So why do I have a problem with Tesco? There is something very cold about shopping in a Tesco, which is a feeling I get and I find hard to explain. But here goes: Tesco can assure me a bargain, but the whole shopping experience is marred by the fact that 9/10 times I shop there I am treated like a moronic ghost at the checkouts. For me, Tesco is not about being 'happy to help' at all - I think as a whole the company could do more for customer relations. Maybe I'm being incredibly biased because of my Argos loyalties here, but its what I see, what I think and I know others have agreed with me.

And yet, I still go back. Shopping in Tesco is too often a guilty pleasure for me, one which I feel wrong for doing but its something I do anyway. Call it an addiction, call it chocolate cake, call it a drug; I just can't help but be pulled in by the ease of parking, location, convenience and choice. Yes I am a 21st century boy - spoiled and captivated with 24 hour shopping and I have a 'I want it now' attitude. I know what Tesco does to farmers and how it hurts the rural community. I know how Tesco really couldn't give a damn about me and just wants my money then wants me to leave and then come back again. I guess I shouldn't moan - after all, its only a shop, providing a service which the average consumer certainly enjoys. If everyone else thinks its ok, surely it must be fine? With a mentality like that you could fit right at home in Nazi Germany.....

0 comments: