Supermarkets in Shetland - prices, ethics and experiences

[icepick239]

I cannot believe seventy pages have been generated essentially "discussing" one retailer.

.

There were 97 Pages discussing DA Clark but with an absolute zilch return for the Shetland Public.

At least with Tesco there will be a return and benefit for the public as a whole.

 

Make a note to find out the following from Tesco UK Ltd:

How much Profit was actually generated from their Shetland operation, for its first year of Trading?

[Ghostrider]

^^ ....'tis a very valid point.

 

Never mind, I'm sure Mr. Clark will ensure a handsome return for Shetland when he becomes our SNP MSP.

 

Off to check the current temperature in hell, as its gonna be pretty damn chilly round there before his posterior keeps a cushion in unHolyrude warm.

[Malachy]

At least with Tesco there will be a return and benefit for the public as a whole.

 

Not quite sure if you're being ironic here.

 

Make a note to find out the following from Tesco UK Ltd:

How much Profit was actually generated from their Shetland operation, for its first year of Trading?

 

This would be a very interesting and significant thing to know.

 

What hasn't been discussed enough here is the detrimental effect that Tesco will have on the wider local economy. Imagine the supermarket as a giant pipe, down which many Shetlanders will be throwing an increasingly large proportion of their wages. Shopping in local shops, on the other hand, allows more money to circulate within the islands (ie the profits remain here, they don't go to the Cayman Islands or to faceless shareholders elsewhere). So, unless my understanding of economics is wrong, the stronger Tesco's hold on the local retail sector, the poorer the local economy will be. Less money sloshing about in Shetland could well mean, ultimately, job losses in sectors entirely unrelated to groceries and shops. These are very real considerations, but unfortunately the majority of posters here seem unable to see beyond the bright lights and special offers. Tesco's profits in Shetland is money that could, theoretically, be remaining in Shetland.

[lerwick]

Local shopkeepers banks or Tescos bank How does this help my bank?

[Malachy]

Local shopkeepers banks or Tescos bank How does this help my bank?

 

A local shopkeeper will be spending much of their profits locally - buying food here, buying a house here, going to the pub, eating in restaurants, paying their council tax, etc etc etc. This money will circulate within the local economy, maintaining jobs and services as it goes.

 

Tesco's profits on the other hand, will be gone from Shetland forever.

 

It's pretty simple really.

[Ghostrider]

^^ I would like to agree with you, but is the sum of money in question really that much?

 

If Tesco wasn't here, the vast majority of what they sell would be being sold by local businesses. Tesco however can sell what they sell at a lower cost than a local business realistically can, due in parts to bulk buying at lower wholesale cost, selling at narrower margins, and being big enough to maintain and swallow loss leaders.

 

For the sake of argument, lets say both a local business and Tesco are selling an identical product for £5.00. Lets say of that £5.00 it cost Tesco £2.00 to obtain the item and put it on the pier at Holmsgarth, they take £1.00 profit, and the remaining £2.00 is what they return to the local economy through wages, rates etc etc.

 

Then take your local business, who through not having bulk buying power cannot get the same item on the pier at Holmsgarth for under £3.00, and they have the same return to the local economy through wages, rates etc of £2.00.

 

Bottom line, regardless of who retails that item, £3.00 is leaving the local economy. The only difference is that Tesco can afford to continue supplying said product to the public at cost as they are taking a slim profit, whereas your local business would gain nothing as they're letting it go at cost. If Tesco wasn't here, your local business would have to sell it at £5.50, £6.00 or more, making it a poorer deal for the public, but still removing the same sum from the local economy.

 

Granted there are almost certainly many products supplied by Tesco, or even the Coop for that matter, which DO take out of the local economy more than a local business supplying the same item would, but I'm leery of swallowing hook, line and sinker the argument that the amount of money Tesco etc take out of the local economy is or is likely to become an amount which has significant knock on effects, without some sort of figures as back up.

[Malachy]

I would argue with your analysis, but it's hard to be very concrete without figures to work with. I think the difference within the local economy would be considerably greater than you're suggesting, but this difference will be most obvious if people start going out of business, as seems rather inevitable.

[Ghostrider]

^^ Agreed, without actual figures breaking down the percentages of Tesco spend and local business spend which goes out the Sooth Mooth, coming to any sort of reasonably reliable predictions is near impossible.

 

You may well be right that Tesco's profit exceeds the difference between what it costs them to obtain their local throughput, and what it would cost local business to obtain the same stock. I rather suspect that you are, but without figures of some sort its a difficult argument to hold up, and an impossible one to prove.

[Spinner72]

^^ What is a far bigger factor, I would argue, is the amount of money which will at least in part stay within the Shetland economy now due to Tesco's expansion.

 

By this I am referring to the electrical, clothing, household goods, DVD's, CD's, Books and Toys which will now be bought locally instead of from catalogs or online.

 

I had a week off last week and was in Tescos on a couple of occasions. Following this, I can safely say we will be continuing to buy our main groceries locally, with the occasional "helly errands" trip to the coop to stock up on frozen foods, toiletries etc. Possibly a trip over to Tesco's if they have a good promotion advertised, which is something we have always done since Presto's opened.

 

In short - nothing's changed as far as normal shopping goes. However, I now see Tesco's as worth trying for the type of goods we would normally have gone straight to Argos, Catalog or Internet.

 

Of course there is the argument that this will cost shetland's couriers some trade as well, but I suspect that will be minimal compared to the extra income provided by the extra salaries paid by Tesco, and the money saved by us by being able to buy something cheap locally means we can invest that elsewhere in the local economy.

 

A local shopkeeper will be spending much of their profits locally - buying food here, buying a house here, going to the pub, eating in restaurants, paying their council tax, etc etc etc. This money will circulate within the local economy, maintaining jobs and services as it goes.

 

How does this differ from the Tesco's Manager doing the same?

[bug]

^^ Agreed, without actual figures breaking down the percentages of Tesco spend and local business spend which goes out the Sooth Mooth, coming to any sort of reasonably reliable predictions is near impossible.quote]

 

Cash wise there is probably only a couple of hundred thousand quid circulating around Shetland (and hidden under matrasses etc) and a couple of million cash held in all the local banks etc. The rest ain't in Shetland. Shetlands economy relies more on cyberspace transactions than cash.

[icepick239]

Never mind, I'm sure Mr. Clark will ensure a handsome return for Shetland when he becomes our SNP MSP.

.

Surprising all of this, in it?

I tocht DAC would take advantage of Sanjay retiring from North Ward Lerwick and stand for Council

But no, it's Hollyrude as an SNP MSP or bust.

Try Westminster my friend - it's further away

More later

[Dcald]

 

The simple fact is this; if you don't like Tesco, you shouldn't shop there. Co-Op is here too, it's not like you're being forced to shop at one or the other, it's all your own choice. As for the town centre, well it's simply the fact that everything is so overpriced. At Hydro or Bolts, you could get a Samsung 32" TV for say, £500, give or take. At Tesco, £300 (again, give or take).

Yesterday I was in Lerwick.....

The Hydro had an offer..Samsung 32" LCD £375......then we were into Tesco....OH, special offer !!!!......£380 for the same TV.....

Bolts don't sell Samsung...........but a very friendly member of staff gave a demo of their 3D TV....compared with the brainless checkout person at Tesco, it's well worth to go to Bolts....

 

As said before, it it not the checkout operator's job to demo a TV for you. For that to happen, you would have to speak to someone who works on that particular department. If they don't know, they will get their section manager out to speak with you. We don't have the room do demo a TV either. You expect too much from the staff and seem disappointed when your highest of high expectations are not met.

[shetlandpeat]

Local shopkeepers banks or Tescos bank How does this help my bank?

 

A local shopkeeper will be spending much of their profits locally - buying food here, buying a house here, going to the pub, eating in restaurants, paying their council tax, etc etc etc. This money will circulate within the local economy, maintaining jobs and services as it goes.

 

Tesco's profits on the other hand, will be gone from Shetland forever.

 

It's pretty simple really.

 

There is a little to add to that Malachy.

 

All the employees live, rent, buy and contribute to the local economy.

Tescos do provide a reasonable remuneration package for their staff including share options.

But I do understand what you say.

[shetlandpeat]

That was a reply to Salmon, not a comparison. Co-Ops are run by the community for the community.

 

And the rabbit and fishing was a dig at the fact that folk want these things wrapped in plastic and from other shores.

 

I dont often see folk doing these nowadays.

 

The tesco club card is still a different thing, co op dividends are about a collective, trying to promote community.

 

How many Shetland Hotels take Tesco Vouchers?

 

(I bet the answer may be less than 1)

not the farming community they are just as tough as the evil tesco. they are a big retailer but funnily enough not so big in the north west of england. peat were do you shop.

 

I shop at Booths, 50% of produce is sourced locally. It costs a wee bit more, but good. Food lasts so much longer. The tatties dug the night b4 are great. The profits stay in the north west.

Tesco have dominated Leyland, a huge store and a few locals, Morrisons built a store there too, on the old lorry factory plot.

We use farmers markets too and grow our own stuff.

[swc123]

^^ I would like to agree with you, but is the sum of money in question really that much?

 

If Tesco wasn't here, the vast majority of what they sell would be being sold by local businesses. Tesco however can sell what they sell at a lower cost than a local business realistically can, due in parts to bulk buying at lower wholesale cost, selling at narrower margins, and being big enough to maintain and swallow loss leaders.

 

For the sake of argument, lets say both a local business and Tesco are selling an identical product for £5.00. Lets say of that £5.00 it cost Tesco £2.00 to obtain the item and put it on the pier at Holmsgarth, they take £1.00 profit, and the remaining £2.00 is what they return to the local economy through wages, rates etc etc.

 

Then take your local business, who through not having bulk buying power cannot get the same item on the pier at Holmsgarth for under £3.00, and they have the same return to the local economy through wages, rates etc of £2.00.

 

Bottom line, regardless of who retails that item, £3.00 is leaving the local economy. The only difference is that Tesco can afford to continue supplying said product to the public at cost as they are taking a slim profit, whereas your local business would gain nothing as they're letting it go at cost. If Tesco wasn't here, your local business would have to sell it at £5.50, £6.00 or more, making it a poorer deal for the public, but still removing the same sum from the local economy.

 

Granted there are almost certainly many products supplied by Tesco, or even the Coop for that matter, which DO take out of the local economy more than a local business supplying the same item would, but I'm leery of swallowing hook, line and sinker the argument that the amount of money Tesco etc take out of the local economy is or is likely to become an amount which has significant knock on effects, without some sort of figures as back up.

 

The impact on the local economy and general wider impact of organisations such as Tesco is extremely complicated and could be discussed for days on end, which I would love to.

 

I understand your thinking Ghostrider but would just like to throw in a quick point. You make the assumption that the product is produced outside Shetland and imported.

 

Now what if the product is produced locally - bread, veg, meat, and so on. How does the impact change? How does the local food producer cope in the face of rising energy/production costs as we move forward. Tesco still need to make their profit, margins thus dimish for the producer and ultimately it becomes uneconomic to continue and the local food producer folds with knock on ramifications to the local economy. We get the added 'bonus' of a range of imported food in our supermarket and less local resiliance. Tesco does not care where the product comes from, they care about profit margins.

 

Now the local food producer could still sell to the local retailers/general merchants but will they still be around in sufficient numbers to justify the producer continuing? Will they have gone to the wall in the face of the purchasing power and trading practices of Tesco?

 

I just enjoyed a lovely dinner tonight of local fish, tatties, veg and salad all locally produced safe in the knowledge that the local benefit is strong. I hope I can enjoy similar meals for many years to come.

 

That is enough for one night