Is there a supermarket problem?

Supermarkets have been taking a lot of stick recently.  There is a growing sense of unease among consumers that the dominant position of the big chains, especially Tesco, who have more than a 30 percent market share of all grocery purchases, will eventually work against them.  The move by these chains into the niche occupied by small privately owned or franchised convenience stores adds to the concerns.  Vigorous local campaigns opposing the development of new supermarkets and chain-operated convenience stores provide evidence of this growing unrest.  Sam Norton, Rector on Mersea Island, is amongst those taking a stand.

In response, the Office of Fair Trading is reconsidering the decision made last year not to instruct the Competition Commission to carry out a full-scale investigation into the supermarket chains’ dominance of the UK grocery business.

If you stand outside any supermarket on a Saturday, I suspect most people will agree that they can find everything they need, by way of groceries and many other products, under one roof, at the right price, supplied to them in a convenient manner.  People on lower incomes in particular benefit from the special offers and cheaper unbranded “value” products.  Competition between chains, in towns like Colchester applies pressure to hold prices down.  So what’s the problem? 

In what is a very serious and complex debate, I want to highlight briefly three problems.  First, the benefits we enjoy are effectively “paid for” by those at the bottom of the supply chain.  Many imported goods come at the price of poor pay and unacceptable working conditions for agricultural workers, sweat shop production facilities in the far-east and unfair pressure to prevent the organisation of trade union groups.  To be fair, most supermarket chains do have some form of ethics policy which some are better at implementing than others. 

Secondly, in the UK, farmers receive about 9p for every £1 spent on their produce in supermarkets.  Out of the payment received will come the cost of seed, labour, fertilizer and pesticides, diesel, purchase and maintenance of equipment and buildings, insurance, administration, etc.  This leaves precious little income to support their families.  It is hardly surprising that land is taken out of production and many people are leaving or are unwilling to go into farming.  If Britain’s food production infrastructure becomes seriously weakened, what happens when the cost of oil makes it uneconomical to import food from halfway round the globe?

Thirdly, there is the wider impact on the community.  Supermarkets tend to drain business away from all but the very best local shops, forcing many to close.  People living in rural communities have little option other than to travel to the nearest market town for all their routine shopping needs, making life increasingly difficult for poorer or less mobile members of these communities, especially where poor public transport adds to the difficulties.

Our calling, as members of the church, includes a duty to respond to human need by loving service and to seek to transform unjust structures of society (3 & 4 of the 5 Marks of Mission).  In this year of the Bishop of Colchester’s Discipleship Challenge, we need to consider how and where we spend our money on everyday purchases, in addition to our more direct offerings made in the Lord’s service.  A willingness to accept a little inconvenience, to pay a little more for fair-traded goods and local produce, to support and encourage local businesses that provide essential services for the most disadvantaged members of our communities are just a few small but meaningful signs of our love that we as disciples are called to show to those around us.

Eric Fisher
Rural Affairs Adviser
Colchester Area

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