Back to index of Nerve 8 - Spring 2006

Tescopoly

Tesco’s dominance of the UK grocery market continues and with its latest move into the US announced it seems there’s no stopping it. The tale of one community in Liverpool and its fight with this retailing power indicates that the local is most certainly global.

By Madeline Fuller

In December 2005 Tesco won its appeal against the rejection, months earlier, of its expansion plans by Liverpool’s planning committee. The decision will allow the retailer to increase the size of its Mather Avenue store in Allerton by more than 50%. The decision has angered council members and residents who have fought the plans from the outset two years ago.

Josie Mullen, councillor for Knotty Ash said: “I’m going to ask for an enquiry. The whole planning process in terms of how you can fight, and the fact local people cannot appeal due to huge costs, is an absolute travesty of justice.”

The plans mean the loss of existing hockey pitches that belong to Liverpool University. This will soon be the site of a petrol station.

Residents had been positive about winning their case at the public enquiry. Initial rejection of the plans had been based on several considerations. It was felt that the expansion would have a negative impact on business in the area, increase traffic and noise pollution, would be visually detrimental and would result in a loss of open space.

Pam Leadbeater - Liverpool branch chairman of Campaign for the Protection of Rural England - explained why she thought the plans should be rejected: “It is an encroachment upon open space and there are environmental implications. The pond towards the back of the development is full of wildlife.”

Tesco spokesman Shaun Edgeley said: "We always take into account the views of local people when building or extending stores. We have made some significant changes to the scheme in light of residents’ concerns, including more landscaping, moving the PFS [petrol filling station] and making the extension smaller."

Following announcement of the appeal, residents opposed to the application drafted their argument, unaware that a second application for expansion on the site would be considered. Ms Mullen said: “Everyone was prepared for the first application but we did not know about the second and were left with a few days to prepare.” She added: “Planning officers should have defended the committee’s reasons - the enquiry could only go on the evidence presented by the planning officers.”

A study by Friends of the Earth asserts that: “Decisions made by local councils to accept new supermarket stores are in many cases not made on the grounds of retail need, but because of weak planning system and the power imbalance on a local level makes it increasingly difficult for them to refuse.”

Earlier this year, Tesco was accused of near monopoly in Inverness when it announced plans for its fourth store there. Friends of the Earth’s claim that the planning system was being manipulated has been rejected by Tesco’s finance director, Andrew Higginson, who said that Tesco was in no position to manipulate what is a very long, bureaucratic process.

However, Friends of the Earth argues that: “The key questions are not about illegal activity, but about an erosion of democracy; the inability of local authorities to make a decision against supermarkets.”

In a report published earlier this month, a cross-party group of MPs warned that consumers will suffer if supermarkets are allowed to continue their expansion as they are now. It also points to the effects of this development on local communities. Tesco corporate affairs director Lucy Neville-Rolfe has said of the report: "My conclusion is that the consumer is the best regulator and there is room in a thriving market for anyone who satisfies customers."

The report comes as the Office of Fair Trading decides whether to refer the food retail industry to the Competition Commission for a full investigation. Its decision is expected soon.

To say ‘it’s what the consumer wants’ is a clichéd response used every time retailers defend expansion. It views individuals in only one sphere of life - presenting them as only consumers.

Yes, we are all consumers, but we are many other things as well. We are residents, dog-walkers, sportsmen and women, students, children…with different interests and concerns. Decisions cannot continue to be defended on the assumption that one sphere of human activity trumps all others.

Tesco controls more than 30% of the grocery market in Britain and it is estimated that it has accumulated enough land to develop 180 new stores - subject to planning permission being granted if indeed it is applied for. What the case study of Allerton highlights is that communities wishing to oppose such expansion will have a long and difficult fight on their hands.

For more on campaigns to stop Tesco’s expansion see: www.tescopoly.org