Feelings mixed overTescostore

Jan 29 2008 by Sue Scott, Evening Gazette

THE opening of a new Tesco Express store on Teesside will result in mixed fortunes for the small business community, it is claimed.

As reported in the Evening Gazette last week, the retail giant’s 3.1% rise in UK sales and 26.9% in international sales in the six weeks to January 5 prompted the Forum for Private Business (FPB) to call on the Government to give more support to independent stores.

But despite Tees Valley shopkeepers claiming a diversity of product range and competitive pricing could do more than Government protection to ensure their survival, Steve Forbes, a partner at Dodds Brown Chartered Surveyors, believes the growing trend of mini supermarkets in smaller neighbourhood centres is putting some small firms out of business, while others benefit from the increased footfall generated by these “anchor” stores.

Following the opening of the new Tesco Express on Marton Road, Middlesbrough, Mr Forbes said mini supermarkets, which can provide longer opening hours and have the buying power to provide cheaper goods, can pose a threat to home-grown firms.

He said: “The opening of these stores tends to put some firms out of business, because supermarkets provide such a wide range of goods and services, but what we tend to find is more niche retailers are attracted to areas where these stores are based because of the footfall an anchor store like Tesco will generate.

“It completely changes the mix of businesses in smaller neighbourhood centres as it is bad for some retailers but an opportunity for others.”

But despite the opportunities these mini-supermarkets create for niche retailers, Mr Forbes believes local council planning authorities need to act to minimise the threat presented to other small businesses.

He said: “Local planning authorities should take a proactive standpoint and limit some of the goods and services smaller supermarkets can actually sell because often, particularly where there is a new planning application, the local authority can say ‘You can open here but you can only sell this or that’.

“That can provide a degree of protection for existing businesses in the vicinity.”

He said the trend in mini supermarkets, such as Tesco Express and Sainsbury’s Local, represented the way these firms were attempting to increase their market share.

“The way big supermarkets are growing their business is to look at smaller neighbourhood centres and expand on that footing,” he said.

The Tesco Express store on Marton Road marked its opening by donating £500 to the Great North Air Ambulance.

Store manager Tracy Sissons said: “Living in the area, you see the air ambulance coming and going at the hospital and realise how important the job they do is in saving lives. We are delighted to be able to have the opportunity to give our support to the charity.”

Staff at the new store chose to make the donation to the local air ambulance as part of Tesco’s commitment to supporting local communities.