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2 July, 2008
I NOTE the frequently expressed concern regarding the impending
opening of that trading anti-christ, Tesco.
I agree entirely that it is highly probable, nay, inevitable, that
traders operating on Shetland, both indigenous and branches of
national chains, will experience a change in market conditions when
this new and indeed powerful entity is unleashed upon the local
scene.
Of course if everyone on Shetland boycotts Tesco then things will
stay pretty much as they are. The current traders will see no
adverse effect on their turnover. The Co-op will thrive as it has
done for the last six weeks or so.
Boots didn't cause Laings to shut down. Mackays didn't close Aspects
or Smiths, nor indeed did Bodens, M & S Online or Next, although I
am sure that they have had an increasing impact over the last five
years. Amazon will have doubtless affected the Shetland Times
bookshop and any number of online electrical/photographic retailers
will have caused concern and change to The Camera Shop(s), Bolts,
Frank Williamsons etc. Clive continues to operate despite Play.com,
CDWow and HMV Online. And yes, of course there have been trading
casualties - Televiradio, Viking Computers and many others besides.
But then that's the nature of commerce. Those who sell to the public
must compete for their clients in an ever-changing marketplace. 'Twas
ever thus, even in my own field of operations.
Some years ago, concern was expressed by many bar/hotel operators
about the effect Clickimin would have on their operations, with its
bars and multiple food outlets. It has been integrated and has
itself changed this aspect of its operation fairly dramatically
since its opening. In the intervening decade(s) we have seen many
hospitality (bar/restaurant) enterprises open and several close. Who
decided which would succeed and which would fail?
You did.
I doubt if anyone will be able to suggest that Tesco's business plan
is not “robust". Methinks, indeed, that this is perhaps the problem.
It is feared that Tesco will flourish - but at the expense of
others. But then, I repeat myself, that's the nature of commerce.
And who will decide if Tesco is to flourish?
You will.
If the citizens of Shetland cross the portal into that fresh,
hallowed, selling ground and are tempted by its shiny wares, then
free market forces will have expressed themselves in this democracy
in which we live. Tesco will have, as is their right, invested their
wealth, risked their money and will reap reward or failure
accordingly. We will have choices to make about what and where we
buy and we will make them.
In the area of hospitality I have already mentioned the Clickimin
event of some years ago. Since then, we have seen many publicly
funded forays into this area - Bonhoga, Hays Dock at the Museum and
soon Mareel with its exceptionally busy food and drink operation -
£400,000 per annum is touted I believe.
Of course, if Tesco fail, it’s their money that's lost and their
money that has to pay its running costs regardless.
But people's concern isn't about what will happen to poor old Tesco
if they fail, it’s about the effect on other businesses when Tesco
succeed. Spare a thought therefore about where the £400,000 isn't
being spent when it’s spent at Mareel. In an era of economic
slowdown, it’s not new money, it’s someone else's present turnover
(and that includes Hay's Dock).
If it's considered wrong for a private investor to promote a new
enterprise if it might affect the viability of existing businesses,
then why is it right for a publicly funded one to do just that?
Also, Tesco isn't really very new, it's just a brand change.
I happen to believe that Tesco has a right, should its shareholders
wish it, to invest in new ventures as it sees fit. And I also
believe that Shetland Island Council has the same right, should it's
"shareholders" so wish it.
Tesco invests/risks Tesco's money, the SIC invests/risks ours. The
council's decision is harder in that it must also consider the
non-financial benefits, the social advantages which will accrue from
its investments. Tough job, no question.
I love cinema, music, good food and wine and (shame on me) I love
commerce. I hate prejudice, bigotry and hypocrisy. Please let the
Tesco goose and the Mareel gander be judged by the same rules.
Joe Rocks
Busta House Hotel
reservations@bustahouse.com |
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