MSYS WHAT'S ON
RSA are part of the MSYS Action Group and are very excited about plans for this year. A centrepiece of activity will be National Independents Week starting on June 2.
To apply for your free point of sale kit you must call the MSYS action no NOW!! Call 0161 440 278

COMPETITION COMMISSION REPORT ON GROCERY MARKET – IT’S BUSINESS AS USUAL FOR THE SUPERMARKETS
The Competition Commission’s long awaited report on the grocery market holds few surprises. There will be few tears in the boardrooms of the “Big 4” supermarket chains - the Commission has decided that what we need for the 21st Century is more supermarkets and to juggle the fascias around a bit. However, whilst the Commission was deliberating, there has been a crucial shift in the way the world works. The rocketing cost of the food on grocery shelves and the £5 per gallon cost of petrol makes its findings very dated already.
Ken Parsons, Chief Executive of the Rural Shops Alliance, commented, “this report was a major opportunity to curb the power of the large supermarket chains and to allow smaller shops to compete on a level playing field. Instead, the Commission is allowing the likes of Tesco to use their raw market power to continue their unfair buying terms. The consequence in the long term will be a lot of local communities facing the closure of their much-valued independent local shop.”
The Competition Commission itself shows the gulf between the prices that the Big 4 obtain and that provided by suppliers to smaller wholesalers and symbol groups – the gap is a massive 16%. (See table 5.1, page 91 of the Report) Clearly part of this difference is down to the economies of larger order sizes, but the Commission then tries to attribute the rest to an unconvincing set of factors, such as larger firms training their buyers better. This really cannot be allowed to pass. It is raw negotiating power, pure and simple. The Commission then proceeds to say that these differences in supplier prices do not significantly affect competition.
These differences do matter. Customers see small shops in both rural and urban locations as having high prices, the owners try to keep prices low at the expense of profitability and hence they under invest in their businesses and end up taking less than the national minimum wage for their own labours. It is an unsustainable model. These shops are very important indeed to those members of the community without cars. They can live with fair competition but not the current situation.
A major opportunity has been missed. Local communities up and down the country will become the poorer when their local shopkeeper finally concedes defeat and closes, not because he is inefficient, but because the Competition Commission has failed to understand the significance of its own figures.
We have a situation where the Big 4 are being allowed their head, there will be an ombudsman to try to protect suppliers; who is there to look after the independent retailer?

BRITISH FOOD FORTNIGHT – 20 September to 5 October 2008
Now in its seventh year British Food Fortnight (BFF) is the biggest national celebration of the diverse and delicious range of food that Britain produces.
Plan now how you are going to champion British local food during the BFF event. Consumers really are looking to buy local food with provenance and the BFF would be an excellent way to exploit this significant opportunity.
‘How to Take Part’ packs are available from: info@britishfoodfortnight.co.uk

RESPONSIBLE RETAILING - AGE RELATED PRODUCTS
Sales should be refused if customers are unable to prove they are:
16 or older if the product is Lottery
18 or older if the product is Tobacco or Alcohol or Fireworks or Solvents
You are advised to train staff in relation to ‘age related’ products and to use a ‘refusals register’
‘No ID No Sale!’ – material is available at: www.noidnosale.com
Challenge 21; ‘Under 21?’ – material is available at: www.wsta.co.uk
Contact RSA on 01305 259911 for help on any aspect of ‘age related’ responsible retailing.