A supermarket price war may be on its way. A supplier from Asda reported earlier this week that they have negotiated a 10% to 12% price rise for its produces but Asda are not increasing the prices of this product, hitting there profits hard.
The company plans to absorb the heavy increase in food costs, estimated suggest cost could rise a huge 30%. This is all good news for our suppliers but the consumer could see a massive increase in prices after a price war if Tesco and Sainsbury’s enter this arena.
Deathofthehighstreet sees that suppliers and producer are getting a fair deal which is very pleasing but if smaller stores have to pay increased prices for their goods then prices will rise if supermarket ensue a price war this could be the next phase in the decline of our high streets. Deathofthehighstreet will watch this develop over the coming days and weeks.
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How much longer will our corner shops exist?
Supermarkets are taking over the high street, selling everything from food, clothing and electrical goods. There is nothing left for the little man to sell, they are monopolising our high streets. In the years to come only the charity shop will be left in between two supermarkets and the high street as it exists will cease to exist.
The link below highlights why this blog was created and if you are interested.
- http://www.timesonline.co.uk/tol/news/uk/article732524.ece
The dominance of Tesco in facts
- 2,000 small shop close every year due to supermaket dominance
- One in 240 of the population are employed by Tesco
- £5,000 a minute in sales
- 6% of the country's mail is accounted for by Tesco on the day it sends out details of its clubcard promotions
- One of every Pounds eight spent on Britain's High Streets is spent at Tesco.
- Only four out of 121 UK postal districts are without a branch of Tesco - Harrogate (Yorkshire), the Shetland and Orkney islands, and the Outer hebrides.
- Tesco plans to open 124 new stores in the UK before the end of the financial year.
- The make £77 of profit every second.
- Tesco had global sales of £41.8 billion last year.
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About Me
- Johnny
- Sutton, Surrey, United Kingdom
- Im a journalism student studying at City University. I have just started my second year an want to explore how the intetnet and especially social networking sites are changing the way journalists operate.
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The end?
How much longer will our corner shops exist?
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