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Tesco buy all nine Shoprite supermarkets- Monopoly?


darenisepic

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4 minutes ago, IOM said:

The alternative is a retail landscape with more competition and we should have found a way to encourage other retailers here . If Tesco had not been allowed to buy an effective monopoly Aldi might have come here and set up a store in Douglas then you would see competitive pricing . 
Shoprite had many faults but it acted to keep Tesco competitive why else did they have the same prices across . It’s hardly a coincidence the minute that competition was removed prices have risen . 

Yes, I agree, but how do you do that?  There wasn't the legislative framework to challenge on monopoly grounds, so we have what we have and cannot be undone. 

So, shop around.  If some Tesco stores fail, then they will close.  That is not to say that they wouldn't have closed with Shoprite, but at least there is a replacement there.

 

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12 minutes ago, IOM said:

The alternative is a retail landscape with more competition and we should have found a way to encourage other retailers here . If Tesco had not been allowed to buy an effective monopoly Aldi might have come here and set up a store in Douglas then you would see competitive pricing . 
Shoprite had many faults but it acted to keep Tesco competitive why else did they have the same prices across . It’s hardly a coincidence the minute that competition was removed prices have risen . 

Aldi would already be on the rock were the company at all interested. Which big retailer is really interested in an island with the population of a decent town in the UK? So Tesco is more expensive - this is the joy of living on an island with  expensive freight links.

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Just now, GD4ELI said:

Aldi would already be on the rock were the company at all interested. Which big retailer is really interested in an island with the population of a decent town in the UK? So Tesco is more expensive - this is the joy of living on an island with  expensive freight links.

Am not sure about that . Aldi have a store right next to Booths in Carnforth . The population of Carnforth is 5600 . I suspect they have just never looked at the island because they have plenty of opportunities across . But put a call into them find a way of getting them over here . Even if they mark up for the logistics it will still be a very very competitive offer and keep Tesco in check . As it is they will for sure use the island as a cash cow . 

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4 minutes ago, IOM said:

Am not sure about that . Aldi have a store right next to Booths in Carnforth . The population of Carnforth is 5600 . I suspect they have just never looked at the island because they have plenty of opportunities across . But put a call into them find a way of getting them over here . Even if they mark up for the logistics it will still be a very very competitive offer and keep Tesco in check . As it is they will for sure use the island as a cash cow . 

Carnforth probably has a much larger catchment area than just the town population.  People in England are prepared to travel longer distances than we are used to here.  The logistics here may be too much of a headache for the likes of Aldi or Lidl, they possibly look at things from a central distribution hub and ours would add another day to the process. 

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3 minutes ago, Gladys said:

Carnforth probably has a much larger catchment area than just the town population.  People in England are prepared to travel longer distances than we are used to here.  The logistics here may be too much of a headache for the likes of Aldi or Lidl, they possibly look at things from a central distribution hub and ours would add another day to the process. 

Well another reference point is Kirkwall . It has a population of circa 10,000 and has Tesco ,Coop and Lidl . The Lidl model is very similar to Aldi so seems to work there with a population a lot smaller than here . 

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4 minutes ago, IOM said:

Well another reference point is Kirkwall . It has a population of circa 10,000 and has Tesco ,Coop and Lidl . The Lidl model is very similar to Aldi so seems to work there with a population a lot smaller than here . 

But you are still missing the larger catchment area and, likely,  proximity to a distribution hub. 

I don't know, not in that business, but I suspect they will apply certain criteria on population and distribution and pursue or discount pretty quickly. 

Why don't you ask them? 

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9 minutes ago, Gladys said:

 

Why don't you ask them? 

Because I’m not in a position where I can likely influence them but there are plenty of people who are and could. 

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17 minutes ago, Gladys said:

But you are still missing the larger catchment area and, likely,  proximity to a distribution hub. 

Doubtful that there’s a large “catchment area” around Kirkwall.   And the nearest distribution hub probably involves a sea journey.

eta: or have I missed your point, Glad?

Edited by Jarndyce
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1 hour ago, IOM said:

The alternative is a retail landscape with more competition and we should have found a way to encourage other retailers here .

Not going to happen in a million years. Sorry.

You are right that some of those who celebrated the Tesco take over will love to eat their words, but there isn’t an alternative for the island.

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Carnforth has a decent hinterland. That’s why there’s Booths there. And a Tesco Superstore. It’s just off the M6, gateway to the southern lakes, and Furness, and the western approach to the Yorkshire Dales ( Kirby Lonsdale ) . It serves Arnside, Silverdake, Milnthorpe, lots of villages to the east, then Bolton le Sands and Hest Bank to the south. The alternatives are Lancaster (including Morecambe ) or Kendal..

I suppose it’s catchment is nearer to 50,000 within a 10-15 minute drive.

As for Kirkwall, the huge difference from IoM is the SNP Scottish executive road pricing equivalency charging policy for freight on CalMac and other Scottish ferry operators. There’s not much in the way of supermarkets on the other inhabited islands, but there’s lots of ferries and weekly shopping is on Mainland catchment area about 20,000. Distribution costs aren’t much more than than Thurso, where there is a Lidl store.

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22 minutes ago, Jarndyce said:

Doubtful that there’s a large “catchment area” around Kirkwall.   And the nearest distribution hub probably involves a sea journey.

eta: or have I missed your point, Glad?

Not really, but there are likely different factors; part of Scotland, sea links may be easier/cheaper, some kind of subsidy?  They would not be there if it wasn't profitable and fitted with their model.  

My point is that it is pointless bringing up examples of other locations with small populations, unless we fully understand why they are there in the first place. 

ETA John has referred to shipping subsidies.

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