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A new battleground in store wars | A new battleground in store wars |
(about 7 hours later) | |
The Highlands and Islands have emerged as a new frontline in the UK supermarket store wars. | The Highlands and Islands have emerged as a new frontline in the UK supermarket store wars. |
Chains such as Aldi, Asda, Lidl, Sainbury's and Tesco are in a trolley dash to open new outlets in the region. | Chains such as Aldi, Asda, Lidl, Sainbury's and Tesco are in a trolley dash to open new outlets in the region. |
Experts said the activity in the north of Scotland had made it one of the most interesting retail market battlegrounds in the country. | Experts said the activity in the north of Scotland had made it one of the most interesting retail market battlegrounds in the country. |
Discount supermarket Aldi alone has ambitions to open nine new stores across the area. | Discount supermarket Aldi alone has ambitions to open nine new stores across the area. |
Tesco has just lodged detailed plans for a site at Holm, Inverness, and Highland councillors will consider its proposals for Tain on Tuesday. | Tesco has just lodged detailed plans for a site at Holm, Inverness, and Highland councillors will consider its proposals for Tain on Tuesday. |
In autumn, public inquiries will be held on Asda's plans for its first two stores in the Highlands. | In autumn, public inquiries will be held on Asda's plans for its first two stores in the Highlands. |
Because the supermarkets are running out of sites on the mainland, and there are now very few towns without a wide choice of shopping, they are moving into the these last bastions of wilderness Ronan HegartyThe Grocer magazine Supermarkets sweep north | Because the supermarkets are running out of sites on the mainland, and there are now very few towns without a wide choice of shopping, they are moving into the these last bastions of wilderness Ronan HegartyThe Grocer magazine Supermarkets sweep north |
Leigh Sparks, professor of retail studies at the University of Stirling, said there was a "mixed bag of reasons" for what was happening. | Leigh Sparks, professor of retail studies at the University of Stirling, said there was a "mixed bag of reasons" for what was happening. |
He said Tesco's often criticised domination of Inverness may have attracted rival chains to consider a market they had previously ignored. | He said Tesco's often criticised domination of Inverness may have attracted rival chains to consider a market they had previously ignored. |
The Grocer magazine has also been watching and reporting on the Highlands and Islands. | The Grocer magazine has also been watching and reporting on the Highlands and Islands. |
News editor Ronan Hegarty said: "The supermarkets spend a lot of time and money on research before they decide on a site. | News editor Ronan Hegarty said: "The supermarkets spend a lot of time and money on research before they decide on a site. |
"But they've pretty much squeezed every inch out of Britain's mainland." | "But they've pretty much squeezed every inch out of Britain's mainland." |
He added: "The Highlands and Islands is one of the more interesting battlegrounds at the moment and something we've picked up on recently. | He added: "The Highlands and Islands is one of the more interesting battlegrounds at the moment and something we've picked up on recently. |
"Because the supermarkets are running out of sites on the mainland, and there are now very few towns without a wide choice of shopping, they are moving into the these last bastions of wilderness." | "Because the supermarkets are running out of sites on the mainland, and there are now very few towns without a wide choice of shopping, they are moving into the these last bastions of wilderness." |
According to Prof Sparks, a number of different factors are driving empire building in the north and islands. | According to Prof Sparks, a number of different factors are driving empire building in the north and islands. |
Events of several years ago such as Tesco beating Sainsbury's in the takeover of William Low supermarket sites have a part to play too. SUPERMARKET FACT FILE Lidl have seven stores in the Highlands, but none on the Western IslesTesco has three stores in Inverness and others in Dingwall, Aviemore, Wick, Thurso and will soon have a presence in Ullapool and StornowaySainsbury's plans to open in Nairn, Nairnshire, would be its first store in the Highlands and IslandsMorrisons, another of the UK's major chains, has stores in Inverness and AlnessAsda does not have a presence in the Highlands and Islands, but has plans to open twoAldi hopes to open the shop it is building in Inverness by Christmas | |
He said: "Tesco, with the purchases they have made, and the presence they have got, are exploiting areas where they can get permission on sites. | He said: "Tesco, with the purchases they have made, and the presence they have got, are exploiting areas where they can get permission on sites. |
"Sainsbury's history in Scotland goes back to its bidding war with Tesco for Willie Low. | "Sainsbury's history in Scotland goes back to its bidding war with Tesco for Willie Low. |
"Tesco gaining Willie Low gave them sites pretty much all over Scotland. | "Tesco gaining Willie Low gave them sites pretty much all over Scotland. |
"Sainsbury's are having to build a network of sites from scratch and making it much harder to get that critical mass of stores." | "Sainsbury's are having to build a network of sites from scratch and making it much harder to get that critical mass of stores." |
Discount supermarket Lidl has been building distribution centres to support a future "large network" of stores, Prof Sparks said. | Discount supermarket Lidl has been building distribution centres to support a future "large network" of stores, Prof Sparks said. |
The past month has seen a number of firsts, with a major development that would include the first Sainsbury's store in the Highlands getting outline planning permission. | The past month has seen a number of firsts, with a major development that would include the first Sainsbury's store in the Highlands getting outline planning permission. |
Tesco, meanwhile, is also poised to open its first stores on the Western Isles, Skye and Ullapool in the north-west Highlands. | Tesco, meanwhile, is also poised to open its first stores on the Western Isles, Skye and Ullapool in the north-west Highlands. |
An application by Lidl for a shop in Portree on Skye was approved by the local planning committee last week. | An application by Lidl for a shop in Portree on Skye was approved by the local planning committee last week. |
Its discount store rival Aldi is building a new outlet in Inverness and has plans for more. | Its discount store rival Aldi is building a new outlet in Inverness and has plans for more. |
Even Tesco's domination of the market in Inverness - earning it the nickname Tesco Town - has a role in the ongoing Highlands and Islands gold rush. | Even Tesco's domination of the market in Inverness - earning it the nickname Tesco Town - has a role in the ongoing Highlands and Islands gold rush. |
Prof Sparks said: "In the last two-three years with the Competitions Commission and publicity in the press, Inverness and Tesco has been given as an example of market domination. | Prof Sparks said: "In the last two-three years with the Competitions Commission and publicity in the press, Inverness and Tesco has been given as an example of market domination. |
"Tesco have got bad press because of it, but they went in where others did not want to go. | "Tesco have got bad press because of it, but they went in where others did not want to go. |
"Others saw what Tesco were doing and looked at the Highlands as more of an opportunity." | "Others saw what Tesco were doing and looked at the Highlands as more of an opportunity." |
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