New figures published by the Office of National Statistics, indicate the small independently owned retailers are being forced into administration due to the rise of the ‘power brand’ supermarket chains.
The research shows that supermarket chains such as Tesco and Sainsbury’s have grown during the recession while the number of small independent retailers who are having to close their doors has risen exponentially. This is thought to be a consequence of the fact that supermarkets no longer only sell food, they also sell books, CDs, clothes and even Televisions, and due to the fact that they can order such huge quantities, they are able to offer discounts that smaller retailers cannot compete with.
Also, the report suggests that the high street – the historical home of smaller independent shops – is becoming increasing saturated with larger retailers. Mark Thomas, small business director at finance company EMG comments;
“The growth of supermarket giants have blown small retailer out of the water. They cannot compete on price, choice or advertising and as a result the UK’s high street is suffering massively. Something needs to be done to deal with the meteoric rise.”