Supermarket onslaught threatens Stokey shopkeepers

Munir of Akdeniz grocers Photo: Jamie Elliott

Independent shopkeepers say the arrival of three supermarkets chains on Stoke Newington High Street is pushing down profits and making it hard for their businesses to survive.

Customers are being tempted away by low supermarket prices, discounting of basic foodstuffs and strong advertising. Many of the goods stocked by independent retailers are now available more cheaply in the newly opened stores.

“We can’t sell a lot of the things we used to, like biscuits and tinned food, even though we still stock them,” says Munir, who helps run family owned Akdeniz grocers and general store which now finds itself directly opposite a recently opened Tesco Express.

“Takings are down by as much as 10% and we can’t compete with the supermarkets on basics like milk because they buy it in such huge quantities.”

Tesco was the first supermarket to arrive on Stoke Newington High Street, 18 months ago, followed by Sainsbury’s and then Iceland.

Sainsbury’s took over the site of a family run Cost Cutter store which held a half-price fire sale before closing at short notice.

According to neighbouring shop-keepers, Sainsbury’s had made the Turkish owners of the Cost Cutter store an offer they could not refuse.

Baker Hassan Abbas, of Akdeniz Bakery, has seen a big fall in income since the arrival of the big stores.

“Our takings are down between five and ten per cent. All the things we sell have been affected, but especially savoury snacks and pastries which we used to sell a lot of. I see people coming out of the supermarkets with things they would have bought us.”

The timing of the arrival of new competition could not have been worse.

“The credit crunch has made business tough, but these supermarkets have made it a lot more difficult. We are only surviving now, not making a good living like we used to.”

A couple of month’s ago, Tesco ran a discounted milk promotion. Two pints cost only 75 pence. At Akdeniz grocers and other independent shops, the same size carton costs £1.20.

So what can the small shops do to compete? Has Munir at Akdeniz grocers thought of clubbing together with other shop owners to buy milk and other basics together to bring the price down?

“No,” he says. “The problem is there are lots of different owners and no-one has suggested it.”

A few doors down from the new Sainsbury’s, however, one shopkeeper tells a very different story. Yogi Patel, owner of Paramount Fruiters – a grocers that specialises in West Indian produce – says his business has actually benefited from the extra competition.

“I’ve been here 20 years and this place is probably doing better now than it ever has,” he says. “In the beginning takings were hit but I responded by reorganising the shop, displaying my goods better and competing hard on price.”

Mr Patel spent over £17,000 up-grading his shop.

“It was a lot of money to invest, but it’s been worth it,” he says. “I’ve got a bigger range than the supermarkets that have opened round here and I give better customer service.”

Unlike some other grocers in the area, Mr Patel belongs to a buying group, Nisa Today, which allows thousands of small stores to club together to purchase stock to help them compete on price.

“Being a member of Nisa means I can sell basics like milk even cheaper than the supermarkets,” he says.

If you would like to take action on supermarkets contact Tescopoly or if you are a retailer looking to join a bulk buying scheme see Nisa-Today’s .