Today’s newspapers and radio are full of the proposed competition investigation into supermarket monopoly.
So, as supermarkets (especially Tesco’s) are increasingly accused of abusing their growing monopolistic positions, we ask what’s the case in the local situation.
With Tesco trading for less than seven months, it’s too early to give any real indication of course. But is Rhuthun now part of the “supermarket state”, a kind of a free enterprise yet totalitarian nightmare, where the emerging Tesco will kill any competition? A sort of modern example of the pre-Truck Act 1831 company store*, where locals are condemned to spend their wages in one location?
Yes it is...
The most interesting thing about the arrival of Tesco’s in Rhuthun is that suddenly, the whole town is competing against Tesco. Or it’s perceived to be. It’s as if everything’s out of balance. When small shops change hands, there’s a competition among stores of the same genre. This is localised, some would say healthy. But when the likes of Tesco comes, suddenly the whole town is pitched against the newcomer. It’s less the fact that Tesco is competing against the town, though it is. It’s more the other way round – Tesco’s the threat and every established business now lives in fear. The town becomes defensive. In the next two years, Tesco has the power and the potential to weaken the town to the extent there is nothing left worth buying there.
And if you believe that Tesco Rhuthun doesn’t want to expand, think again.
No it isn’t...
There’s evidence to suggest that Tesco is bringing people into Rhuthun, people who have either forsaken Rhuthun or who would not normally shop here. The effect spreads from Tesco to the whole town. There are people now visiting Rhuthun from places like Dinbych/Denbigh, Corwen and Y Bala who would otherwise “big shop” in Dinbych, Y Rhyl or Wrecsam. Tesco is attracting Morrison’s Dinbych ex-patriots back into the town, together with people from Dinbych who, through Tesco, are newly discovering Rhuthun is a nice place to do business.
And if you believe that Tesco Rhuthun doesn’t want to expand, hope that it will.
* The Truck Act 1831 made it illegal for mill owners and other industrialists to pay their workers in tokens to spend in the company store rather than currency to spend anywhere.
So, as supermarkets (especially Tesco’s) are increasingly accused of abusing their growing monopolistic positions, we ask what’s the case in the local situation.
With Tesco trading for less than seven months, it’s too early to give any real indication of course. But is Rhuthun now part of the “supermarket state”, a kind of a free enterprise yet totalitarian nightmare, where the emerging Tesco will kill any competition? A sort of modern example of the pre-Truck Act 1831 company store*, where locals are condemned to spend their wages in one location?
Yes it is...
The most interesting thing about the arrival of Tesco’s in Rhuthun is that suddenly, the whole town is competing against Tesco. Or it’s perceived to be. It’s as if everything’s out of balance. When small shops change hands, there’s a competition among stores of the same genre. This is localised, some would say healthy. But when the likes of Tesco comes, suddenly the whole town is pitched against the newcomer. It’s less the fact that Tesco is competing against the town, though it is. It’s more the other way round – Tesco’s the threat and every established business now lives in fear. The town becomes defensive. In the next two years, Tesco has the power and the potential to weaken the town to the extent there is nothing left worth buying there.
And if you believe that Tesco Rhuthun doesn’t want to expand, think again.
No it isn’t...
There’s evidence to suggest that Tesco is bringing people into Rhuthun, people who have either forsaken Rhuthun or who would not normally shop here. The effect spreads from Tesco to the whole town. There are people now visiting Rhuthun from places like Dinbych/Denbigh, Corwen and Y Bala who would otherwise “big shop” in Dinbych, Y Rhyl or Wrecsam. Tesco is attracting Morrison’s Dinbych ex-patriots back into the town, together with people from Dinbych who, through Tesco, are newly discovering Rhuthun is a nice place to do business.
And if you believe that Tesco Rhuthun doesn’t want to expand, hope that it will.
* The Truck Act 1831 made it illegal for mill owners and other industrialists to pay their workers in tokens to spend in the company store rather than currency to spend anywhere.
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Tesco