FROM time to time, the issue of supermarkets dominance crops up – usually when a big chain comes to town.

Over the years in Wyre Forest, there have been a number of such occasions –a new Tesco superstore in Stourport, Asda in Kidderminster and more recently, a Tesco Express in Areley Kings.

My natural instinct is to favour smaller independent retailers over the big corporations. But I, like many, find myself drifting into a Tesco out of convenience, a Lidl out of curiosity, or a Coop because they are actually quite good value.

A few years ago I did a comparison test. One week I did a weekly shop for a normal week’s supplies in Tesco and it took 90 minutes, wasn’t much fun and cost around £140. The following week I went to a middle-sized town centre where I knew there were enough independent retailers to meet my needs. It took an hour, cost £100, was enjoyable and the food, frankly, was significantly better. But despite the fact that the town centre won on all four criteria, I still ended up using the big store.

And that is the problem. The reality is that the only reason these superstores do well is because people use them. On first opening, I am sure there is an element of market capture, where the new store will undercut local competition to attract trade before hiking prices when the competition dies off. But a new superstore will come and compete against the existing dominant brand and so price competition continues – to the benefit of the consumer. And if one brand gets to dominate the market completely, the OFT steps in.

Residents in Areley Kings are understandably worried that a new Tesco will kill off local traders. But it is, of course, local residents who can decide which trader will win by who they decide to shop with.

I, like many of my colleagues across the political divide, am genuinely unsure what is the right answer. Should we favour smaller traders, but at a potential cost to the consumer from reduced competition? Or should we encourage competition to help cash-strapped families? Or is there another answer? I am seeking suggestions and will meet residents in Areley Kings this weekend. But please do share your thoughts with me if you have any ideas.

CONTACT YOUR MP

  • Email: mark.garnier.mp@parliament.uk
  • Telephone: 020 7219 7198 or 01562 746771
  • Write: 9a Lower Mill Street, Kidderminster, DY11 6UU, or House of Commons, Westminster, London