Don’t blame supermarkets for high street decline, says Sainsbury’s boss King
Justin King has waded into the debate over the future of the British high street, blaming traditional retailers for failing to adapt to the changing needs of society.
Delivering the annual City Food Lecture at the Guildhall in London on Wednesday, the Sainsbury’s boss will deny that supermarkets are to blame for the decline of traditional high streets.
“Where high streets are in trouble it is usually because they are not providing what the local population wants,” he will say.
“Supermarkets have reflected society and changes in society. Many shoppers do not have the time to potter between the butcher, the baker and grocer.”
King will argue that empty shops could be converted into residential space or classrooms.
“We must be brave enough to shrink the high street and allow empty shops to be converted for other uses, such as residential, where there is over-capacity.”
James Lowman of the Association of Convenience Stores rejected King’s criticism of small retailers.
“Any suggestion high streets are either not wanted by customers or are not a key part of the future of our retail sector is completely out of touch with our future consumer and community needs,” Lowman said.
Should the high street be allowed to die? Vote in this week’s poll on thegrocer.co.uk.
Readers' comments (5)
Dave Cooke | 13 Feb 2012 13:28
The Government had a hand to play in promoting out of town centres too - through incentives and planning regulation. Customers shopped with their feet - better prices, choice, 24hrs, and service. With huge economies of scale gained, it was a certainty that the multiple grocers would force out all other shops on price.
Why don't you also ask for Joanna Blythman's views? In her book, Shopped, she paints a very compelling picture of the "donought effect" created by the changes in modern retailing.
However, it’s not anyone’s fault – just evolution. We’ll be pointing figures at the internet soon…
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Terry Wildman | 13 Feb 2012 13:40
Don't forget too the huge cost of parking in most town centres. This is purely driven by local authorities, and whilst complaining about the effect that "out of town" shopping centres are having on their high streets, the same LA's are increasing the cost of parking...clearly not seeing that they are not helping! As the correspondent above states...it's evolution, and as anyone who works in retail knows, if you're not changing, you're going backwards!
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Terry Hayes | 13 Feb 2012 16:56
Justin is bound to say that lets face it. If the supermarkets had not opened out of town the High St would still function. I can show you towns/villages that retain supermarkets that are still OK.
Now the supermarkets in a underhand way are cutting down on staff by having automatic tills.
Justin lets at least be honest. My choice of supermarket is Sainsbury and I pass others to go to it so its not personal just the truth.
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David Smithson | 14 Feb 2012 18:12
If Justin thinks town centres should be converted in to residential properties where is he and his competitors going to build their convenience stores?
I have spent 42years in retail - 21 with Sainsburys and 21 in convenience.
If we all keep refitting offering a full range of quality fresh foods and chilled wines we will still be here in another 20 years time!
Please remember Sainsburys was the dominant retailer in the 70s and 80s then lost it to Tesco! Do Tesco's results suggest another chapter?
Beware of traditional retailers Mr King.
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Allan Green | 21 Feb 2012 15:08
Whether we like it or not the supermarkets can under cut any high street business. More and more business are going out of business due to the supermarkets promoting lost leaders to get people into their stores. The local baker, butcher whatever cannot use lost leaders to the extent that the supermarkets do.
Eventually the supermarkets will close down the high street to meet there own selfish needs
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