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Fears for small shop owners
Concern over Tesco Express opening – but loyalty card proves a winner
TRADERS fear a Tesco Express store due to open in Highbury will force shops out of business and steal custom from others.
They spoke out as the 56th business signed up for a new borough-wide loyalty card scheme aimed at supporting small shops, restaurants and bars in Islington.
Tesco Express is opening a branch opposite Highbury Magistrates’ Court in Holloway Road towards the end of the year.
Dominic Sutton, owner of Mother Earth natural food shop in nearby St Paul’s Road, said the opening of the Tesco store would undoubtedly mean some shops shutting and others losing business.
“We will be affected because we sell organic milk,” he said. “Tesco can sell that quite a bit cheaper.”
Mr Sutton, who employs nine staff, said it was too easy to underestimate the impact of a new chain store in the area.
“The effect can be quiet subtle,” he added. “A new store can draw people away from your area even if you are not in immediate competition. Businesses cease to be viable and people stop coming to a particular parade of shops.
“All you have left are cafés, luxury goods and estate agents. Your choice of shops disappears.”
He called for government planning polices that allowed local authorities to rebuff supermarkets which threaten small shops.
Mr Sutton spoke at an event to mark the latest addition to a borough-wide loyalty card campaign aimed at giving customers discounts when they support independent outlets.
In six weeks 150 customers have paid £4.99 for an annual card giving up to 20 per cent discounts on food and services. In one case, a DVD rental shop is offering new-release films hired on a week night at £1.99 instead of £3.95, almost half price.
Many pubs and restaurants are offering 20 per cent off lunches. UK Websaver – part of a nationwide scheme – was launched six weeks ago by 23-year-old City University business graduate Andre Hess.
He said: “Small shops, from The Mall in Camden Passage to Holloway Road and Archway, are under threat.
“Our scheme takes the big store loyalty card and makes it work for small shops.
“We’ve even got an optician offering discounts on glasses and a treatment shop offering a 15-minute extra free massage when you book for the hour.”
Tesco maintain that rather than threaten smaller independent shops their supermarkets actually bring in more customers to an area.
Top five discounts:
• Apollo Entertainment, 81 Chapel Market:
47 per cent discount on new DVD rentals (Mon-Thu).
• Express Internet Café, 15 Liverpool Road:
Buy one hour internet usage, get half hour free.
•The Barnsbury Grocer, 237 Liverpool Road:
20 per cent discount on purchases over £15.
• Rooburoo Indian Restaurant, 21 Chapel Market:
two lunches for the price of one.
• The Chapel Bar, 29a Penton Street:
Anytime ‘happy-hour’ prices |
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