More than half of respondents to a freshinfo poll believe there is room in the UK marketplace for another supermarket chain.
Some 56 per cent of those who took part in the survey, which was carried out earlier this month following the announcement by Asco Ltd that it is opening stores on former Woolworths sites in north-west England, north Wales and Yorkshire, believe that a new player has a place.
One anonymous respondent said: “Why not? Let’s see if they can shake up a few people and not have them resting on their laurels. It is going to be very difficult for them as they are very regional. However, one thing we need is competition and ‘every little helps’.”
Fruit consultant Andrew Poulton said: “Yes, if they go for high street sites. High streets need regeneration and rates holidays for the first year are being considered in some areas, I believe. Not everyone can or wants to shop in out-of-town superstores.”
Other pollsters who left their comments wished the new retail team luck in what promises to be a difficult market and others welcomed the competition that Asco could bring to the market. One said: “Let’s give the so-called top four some competition. What support have they shown to the English grower? None. Where is the loyalty? Go for it.”
Others were less positive, listing 14 of the retailers that already operate in the UK and querying the role any new player could have. One said: “The problem is that the world is about globalisation. The fitter will survive. Look at all the local and national retail takeovers: Jacksons, Wm Low, Safeway and Somerfield. These were all mature businesses and who is to say that a new thorn in the side will not go the same way? May I suggest that it is the long game of the new retail outlet. They will do all the leg work to get back into city centres for a supermarket, like Asda, to take them over, as this is an area of weakness in their portfolio. From what I have read, I cannot see what point of difference the new outlet will offer and to compete, they will need deep pockets. There is room for a new supermarket but it needs an identity rather than a mirror."
But the issue of parking is uppermost in retail and marketing consultant Peter Wynne-James's mind. He said: "If I was Asco I would want to assess each Woolworths store on the basis of no parking, no business even, in the middle of a town. Generally, Woolworths sites have been successful as their merchandise has not been in direct competition with supermarket sites in town centres. Above all, Asco must analyse the spending power of each town and set this against the turnover of each existing supermarket in and out of town. If saturation levels have already been reached, then forget the idea of trading in the town centre, unless you can guarantee direct access to car parking which is more accessible than to your likely competitors."
