Effect on Local Shops

  • In addition to groceries, Tesco propose to sell phones, cards, stationary, music, books, DVDs, games, toys, photo albums, health and beauty. This will have a DIRECT effect on over 20 of our high street shops. leaving it deserted, redundant and lacking community spirit, with no incentive for new shops to move in.
  • There are also a number of shops which rely on the passing trade that a High Street encourages. The store should be on the High St.
  • Tesco have been shown to increase product prices by up to 14% in areas that have less competition,  (ref: The Times)
  • With arguments that it will bring foot-fall into the the town it is unlikely shoppers would go into High St after a Tesco shop….frozen products do not last in a car boot!
  • In Sheringham, a town only 1000 residents more than Newport Pagnell, Tesco estimated that their store will take £1.6m from local traders (Ref: The Guardian)
  • In the five years to 2002, 50 specialist stores including butchers, bakers, fishmongers and newsagents closed every week in the UK. In May 2005 the IGD revealed the loss of 2,157 unaffiliated independent convenience retailers, compared to only 1,079 the year before (ref: Tescopoly).
  • Supermarkets are known for price flexing and below cost selling as reported by the competition commissions report from 2000. In geographical areas with no major competitors, they were selling products at higher products than in areas where they faced stronger competition. The submission by the Association of Convenience Stores to the Competition Commission grocery market inquiry in 2006 found that such practices were continuing.
  • If you think that Tesco just does food, then think again:

Tesco has a banking arm called Tesco Bank, formerly a 50:50 joint venture with the Royal Bank of Scotland. Products on offer include credit cards, loans, mortgages, savings accounts and several types of insurance, including car, home, life and travel. They are promoted by leaflets in Tesco’s stores and through its website. The business made a profit of £130 million for the 52 weeks to 24 February 2007, of which Tesco’s share was £66 million. This move towards the financial sector diversified the Tesco brand and provides opportunities for growth outside of the retailing sector.
On 28 July 2008 Tesco announced that they were buying out the Royal Bank of Scotland’s 50% stake in the company for £950 million. In October 2009 the name of Tesco Personal Finance was changed to Tesco Bank.

What does this mean for local employers like Quinn Direct (now Liberty Mutual)? Is Tesco going to take business away from them, and therefore jobs? Haven’t we lost enough jobs in Cavan?

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