Business in Politics

Let’s be honest, almost all of us have shopped at Tesco at some point in the recent past. Often because they have low prices (and they do) or because it’s your nearest (or most convenient) superstore.

However, some local authorities seem to be in love with Tesco so much (and Leicester City appears to be one of them) that it seems that they want to allow a store on almost every available corner. And, therein, lies the problem.

You see, Tesco has no real interest in the local economy – only in opening up as many stores as possible to steal market share and therefore increase profits. In itself this isn’t an issue, that’s what the business world is like.

But I take issue when local small retailers are negatively affected and livelihoods are destroyed as a result of poor decisions made by councils to allow Tesco to pop up everywhere.

I have an example just round the corner from where I live. There is a row of about 10 shops including a newsagent, a butcher, a baker and a small Tesco (sadly no candlestick maker). There used to be a small fruit and veg shop but it closed down not long after Tesco opened up (with the loss of two full-time and 3 part-time jobs).

So here’s what’s happening: The small businesses can’t compete with Tesco and, as a result, they are struggling (with one down already).

It may just be a matter of time before the newsagent closes because Tesco sells newspapers, magazines, cigarettes, sweets and National Lottery tickets. I hope the bakery doesn’t close just because Tesco sells bread, cakes and sandwiches. And the butcher has seen a reduction in business because (no surprise here) Tesco sells meat and pies.

I think it would be a social and economic travesty if the small local businesses close and those jobs are lost as a result of Tesco being allowed to squeeze out the competition.

Now I’ve heard the argument that Tesco normally creates jobs when it opens a store. And yes, people are employed.

But think about this: if all of those small businesses mentioned above have to close, then how many jobs are lost as a result? Typically under these circumstances, more than the Tesco employs. Another consideration is that the profits from a local Tesco won’t be spent in the local economy, it goes to shareholders. Owners of small businesses tend to live close by and spend their money locally.

I’ve also heard it said that there’s little that a local government can do to stop the likes of Tesco opening stores. However, this just isn’t the case. A local authority can legitimately block (or indefinitely stall) such developments in the interests of local economy and general social well-being.

What I’m saying is this: it’s very naïve and short-sighted of local councils to allow Tesco to open up little stores everywhere. It negatively affects the local economy that they’re supposed to be trying to support and grow.

So, if you run a small local retail business and are worried that Tesco (or any of the other express/metro chains) will encroach on your business then you should contact your local councillors and lobby hard. It’s also worth your while joining the Federation of Small Businesses (FSB) and asking your local branch committee to help with this (since the FSB is a lobbying organisation).

You might also consider starting a campaign group of your own to get support and additional effort from others.

Whatever you do, don’t sit on your hands a whine about a situation that you might be able to change. Yes, it’ll take some work but what’ll happen if you do nothing?