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24 September 2014

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You are in: Jersey > My Island > Features > What cost for lower prices?

Supermarket shoppers

What cost for lower prices?

The Chamber of Commerce has raised serious concerns about the impact a third supermarket will have on the island’s existing small businesses and farm shops.

"It’s not just cheaper prices and everything else stays the same - it wouldn’t be like that."

Professor Leigh Sparks, retail expert

There are serious concerns about the impact that a third supermarket in Jersey will have on existing farm shops and small businesses.

Ahead of the Jersey Competition and Regulatory Authority’s consultation report the Chamber of Commerce has expressed worries about introducing another food retailer into the island.

Clive Spears, the president of the Chamber, believes that there's a number of issues which will not be included in the consulation paper but are important to consider.

Cold rememdies in a supermarket

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Bad for small business?

He thinks that the most serious concern is the impact that a third supermarket would have on convenience stores and farm shops.

“At the moment we have a small business fabric across the island that supports a fair element of local shopping, premium shopping and it supports the agricultural industry as well,” explained Mr Spears.

“I’m worried if a large supermarket comes in it can well tip the balance for a small business… I fear for small business and the pressure it’s put under.”

Farming fears

He is also worried about the effect on farming that a UK supermarket would have.

Recently the Minister for Economic Development reported some positive recovery in the agriculture industry and Mr Spears fears that a new supermarket will stunt that growth.

He said that the existing supermarkets in the island “take good intake from agriculture locally" but doesn’t believe a UK company would necessarily use local suppliers.

'It's not just cheaper prices'

Leigh Sparks, a leading retail professor from Stirling University, agreed with many of the Chamber of Commerce’s worries.

Meat fridge, Hazlehead Farm Shop

Do supermarkets impact on farm shops?

Like the Chamber of Commerce, the professor wanted to highlight that it’s not as simple as more competition, lower costs for consumers:

“It’s not just cheaper prices and everything else stays the same - it wouldn’t be like that.”

He described that there would be “knock on effects on other sorts of retailing and retail support industries that there are on the island”.

'Detrimental to Jersey' warns professor

Professor Sparks suggested that a new UK supermarket in the island would result in consumers changing their shopping habits which will have an impact on local shops, convenience stores and village centres.

He was impressed with the “strong development” of farm shops over the past few years and believes that potentially these local small businesses “could be damaged with a large new superstore”.

“I think that [a new retailer] would be detrimental to Jersey and to the farming market on Jersey,” he said.

Supermarket

Do you want to see a third supermarket provider?

Why is Jersey expensive?

The Chamber of Commerce believes that the JCRA consultation has not paid enough attention to why food prices are higher in Jersey than the UK.

“The reason is simply because it’s expensive to send all the food here in the first place”, Mr Spears explained, “so first of all it makes sense to sell what it is produced locally”.

“Yes, you could get some lower prices - but what are we going to exchange for that?” he asked.

last updated: 09/01/2008 at 16:29
created: 09/01/2008

Have Your Say

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Ashley F
Loving how all of a sudden this argument has popped up after Spar managed to monopolise the corner shop market. Why did no one stop that? They've ruined convenient local shopping for the whole island with their rubbish service and massively over priced goods. There must be something dodgy going on there. There's no way they just kept on buying up old independent mini markets and shops and NO ONE said anything about it. No Chance.Anyway. Yes, bring on Tesco, Asda, whatever. Quite frankly who cares about the local shop when you can get something cheaper elsewhere? If all you want a packet of biscuits at 8pm then you'll go to Herve's around the corner - if you want to do a weekly shop you'll go to the cheapest supermarket with the best range. That's the way it's always been and that's the way it will remain.

Sarah
Thanks Rita for agreeingI think you'll find that Iceland, M&S, and checkers are actually all owned by teh same people in which the states also have shares. Same as co-op. So where is the competition? We need a trader who has NO ties to present supermarkets on the island.

Joanna Gierszewska
With GST round the corner we HAVE TO get cheaper supermarker - or many people will have to leave because they cannot afford to live in Jersey. This is true not only for immigrants, local people too.

mr b
bring it on the more the better im sick of being ripped offed by jersey companies if the likes of tesco or asda can do things cheaper so be it if this happens i will feel for small companies but ther is no one to blame but them selfs

H Horse
If you read real newspapers, not the JEP or the ones with those photos on page 3, you will know that food prices are rocketing throughout the world, not just Jersey. The reasons include oil at over $100 per barrel, poor harvests due to global warming and too many humans. High fuel and food prices are here to stay - you cannot, for once blame our government.

Rita
Yet again another excuse with regards to having a new supermarket!!! when will it end? they always use the same lame excuse it cost a lot to ship to jersey why? there is no way the co-op or indeed the seemingly endless shops called stampers checkers etc all owned by the same people and who also are heavily involved in the government(convenient).. how have these supermarkets survived and if it cost's a lot to ship over here how come w are still paying more for local produce than they pay in the uk? when"our local produce" has to be shipped to the uk? no one seems to want to give an answer to these questions they are just concerned there pockets wont keep getting lined! as i have said many times with regard to this issue FREEDOM OF CHOICE NOT DICTATORSHIP

Ross
We definately need a UK supermarket over here. We have been ripped off for to long in this island. If Tesco or Asda etc come over they would use local products and therefore help local people out. Everybody has different tastes and there would still be people who use farm shops.

Timmy
Will Rondels Farm Shop new development bE the same size as a TESCOS!!!

Mark
The size of the farm shop at sion, will soon be the size of nexr supermarket? also I thought farm shops should sell farm produce, not tooth paste etc!!!

Michael
Yet again we find ourselves in a situation where we feel the need to have our decisions made for us!

If a third supermarket comes to the island and they are overpriced... don't use it! As for using local products... if a tesco (or Asda or any other big chain) opens up a store here and uses UK products I MIGHT buy them. After all - if the shipping costs are going to be so big to change a loaf of bread from the usual UK price of about 25p to the Jersey price of over £1 I will be very surprised, or if milk changes from normal UK prices to the extortionate prices for Jersey milk I shall be astonished also.

Somehow I believe that if a UK chain opens their store here they may well be astonished at how much they can get away with charging us compared to their prices in the UK - and no doubt they will use the "shipping cost" excuse to raise their prices in line with what we pay.

But this is off the point of my rant... we are supposed to this in a FREE society where choices can be made by THE PEOPLE. We will vote with our feet either for or against the new supermarket once it is open. Why should a few people make the decision for everyone when only a few people bother to vote for these people when they stand for election?

If, for example, Maufant stores had heavy investment and started selling a full "supermarket" line of produce at lower prices than the co-op would we really begrudge them of being good at what they do? So why do we feel that someone from outside the island who can do the same can be judged differently?

kate
please not a Tesco supermarket in Jersey. We have had 3 separate supermakets in Jersey before and prices were still high.

We had Le Riches the Co-Op and Safeways (before C I Traders took bought it) Tescos will not reduce prices and anybody who has read into the background of Tesco and how they manage to ruin the farmers incomes after they have been signed up to them would certainly not want a Tesco in Jersy.

Jersy should stand up for no to Tesco as many areas in England are now doing as they realise how domineering and manipulative supermarket giants are.

The expense of shipping always annoys me the price of container goods to Jersey is not that high but is always used as an excuse for higher prices. How come food prices are much the same whatever area of the UK you live in what about transport costs from Lands End to John O Groats?

If I were a local farmer there is no way that I would sign a contract with Tescos they dont care about their suppliers just how much profit they can squeeze out of them.

Gregga
I'd love to see another big supermarket retailer. But hopefully one from the continent - wouldn't want a UK one. Love to see the variety of product that a Carrefour or similar would offer. Yum.

Rita
TABSi dont think you can class M&S as a supermarket. i am not knocking them as there porducts are very good but who can afford to shop there on a weekly basis? certainly not me and even then they dont supply all the things a "Normal" supermarket supply the average person could not afford to shop in M&S for a family.. so i wouldnt class them as a "third Supermarket". sorry

Rita
Whilst some of the "experts" points are valid i dont agree with most of them! and Sarah is quite right in what she say's WHY can't we have another supermarket a bit of competition never hurt anyone.. or should i say the states we live in a democratic society dont we? so why not the freedom of choice to shop where we want?

we lost Morrissons some time ago for what reason? because of the outrages charges of shipping to the island i know this for a fact!!! but whilst it was here what a difference they made no i am all for another supermarket here the sooner the better why do we have to be domminated by the co-op or le riches as the only supermarkets in jersey or spar if you can afford to shop there..

If another supermarket was ALLOWED why couldnt they have a stipulation to use local produce where possible providing they dont charge ridiculas prices..

what i dont understand about this island we pay more for out local produce than they do on the mainland i have seen this for myself perhaps someone could answer this for me?

Tabs
I would say that we've pretty much got three supermarkets already. Have you seen the number of M&S food stores there are in the island? 4 or 5 now I think!

Sarah
Yet more excuses as to why we cant have a supermarket that we can ALL afford to shop at. And lets none of us forget that the states have a finger in the pies of checkers and co op so its not exactly in THEIR interest to have someone else. Tesco prides it self on using LOCAL products. Something tells me the states are worried the people might actually be able to afford things if another supermarket comes over although knowing them it would be waitrose

Monfort Tadier
Whilst I think that the concerns raised by the Chamber of Commerce need to be investigated, I think it is the other large supermarkets who are the most worried. If people are already buying (local) produce from the smaller outlets, at a higher price, I do not see why a third supermarket will change that.Regarding shipping cost - let's have a French/Continental supermarket such as Carrefour, Lidl, Score. This will bring the shipping costs down, as well as provide more variety and better produce

Jenny P
I would welcome a third supermarket as long as it was forced to sign an agreement that a set percentage of products it sold were locally produced.

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