Outline Nature of Supermarket Power on High Streets and Beyond Essay Example

observed, supermarkets are increasing their influence by establishing local branches on high streets to attract aspiring "Repressed" individuals from the Seduced group. Consequently, this shift has a negative impact on retail shops on high streets, particularly those selling groceries.

Supermarkets have quickly gained complete dominance in the market, which could potentially result in a monopoly. This level of control allows supermarkets to manipulate prices and market conditions by exerting power over their suppliers. The extent of this control is evident in the significant sales generated by supermarkets compared to traditional shopping areas. According to the federation of small businesses, four major supermarket chains—Tesco, Sainsbury’s, Asda, and Morrisons—make up 60-70% of grocery shopping in the UK. What is even more concerning is that Portas (2011) claims that over 8000 supermarkets account for 97% of all grocery shopping in the UK.

The closure of small stores in high streets is happening rapidly as shown by the graph. It illustrates a decline in stores, ranging from 8% to 51% (depending on the specialty), since 2001. However, superstores have experienced a 35% increase. These statistics challenge the belief that supermarkets only harm high streets. Instead, according to Wrong (1997), there is a more nuanced perspective suggesting that the impact of supermarkets can be seen as either zero-sum or positive sum. A zero-sum situation would involve balancing gains and losses for all parties involved or even resulting in an overall loss.

The debate between supermarkets and high street shops is a common one, as argued by critics like Tescopoly. The Partick-Linwood example discussed in Making Social Lives (p61) showcases both perspectives. In Partick, the local community believes

that the arrival of a Tesco superstore will have negative repercussions on small retail shops in the town center. However, in Lindwood, the situation is viewed positively as the superstore would bring employment opportunities and attract visitors, ultimately revitalizing the struggling town center.

Supermarket power over High Streets cannot be generalized, as the consequences vary for each situation. However, it is undeniable that supermarkets possess market power and buyer power, resulting in two types of consumers: the Seduced and the Repressed. While this power is often viewed as having a negative impact, some argue that supermarkets also have a positive impact, known as positive sum. This includes revitalizing abandoned areas and improving the quality of life in countries with high poverty rates by creating jobs and bringing prosperity.