SUPERSTORES AND THEIR IMPACT SEMKICHEV VALERIY, 4 BIR
PLAN • Types of superstores • What do they offer • Competition in Murmansk • Positive impact • Negative impact • British experience
TYPES OF SUPERSTORES • • Supermarket Department Store Hypermarket Shopping Mall
SUPERMARKET • Self-service • Large grocery store • Wide selection
DEPARTMENT STORE • Wide range of consumer goods • Different product categories (departments)
HYPERMARKET • Combination of supermarket and department store • Expansive retail facility • Wide range of products under one roof • Allows customers to satisfy all their routine shopping needs in one trip
SHOPPING MALL • Complex of shops representing merchandisers • Entertainment • Parking
WHAT DO THEY OFFER • All-under-one-roof retail • Considerably cheap • Service • Wide variety of products
SHOPPING MALL COMPETITION IN MURMANSK Since Murmansk is a relatively small city there is small number of competitors in terms of huge shopping malls, yet competition is very harsh These are the competitors: • Murmansk Mall • Forum • Volna • Severnoe Nagornoe
MURMANSK MALL
FORUM
VOLNA
SEVERNOE NAGORNOE
POSITIVE IMPACT • City development • Attraction of investments • Infrastructure • Workplaces
CITY DEVELOPMENT • Growth of a city • Financial success • Tourist attractiveness
ATTRACTION OF INVESTMENTS • Investments from merchandisers • New brands • New projects
INFRASTRUCTURE • Improvement of roads • Telecommunications • Electricity
POTENTIAL WORKPLACES • Huge number of new vacancies • Different level of required qualifications • Different spheres
NEGATIVE IMPACT • No competition means monopolization • Small business gets closed • Job loss • Interchangeable employees • Huge territory is occupied • Ecological Problems
SMALL BUSINESS GETS CLOSED • Small shops gets closed • Community business is destroyed • Local owners forced to quit • People forced to drive to superstores far from home
JOB LOSS • Small business owners forced to quit • Or even go bankrupt • Employees are forced to find new job • Number of workplaces created is less than destroyed
MONOPOLIZATION • Small business is destroyed • No fair competition • Corporations control prices
INTERCHANGEABLE EMPLOYEES • Human “resources” • Transient • Disposable • Low perspectives • Low salary
HUGE TERRITORY IS OCCUPIED • Potential territory of cultural meaning
ECOLOGICAL PROBLEM • Air pollution • Consolidated waste • Construction resources
BRITISH EXPERIENCE Across Britain, the high street is in decline. The effects ripple through the communities. A major factor in this decline is the relentless rise of large supermarkets. • Supermarkets lead to local shops closing • Supermarkets take money out of local communities • Supermarkets lead to fewer local jobs • Supermarkets harm the environment • Supermarkets rip you off
• In their Ghost Town Britain reports (2003), the New Economics Foundation (NEF) revealed that between 1995 and 2000 we lost roughly one fifth of our local shops and services including post-offices, banks, butchers and grocers. Furthermore, over the five years to 2002, around 50 specialist stores closed every week. • In 1960, small independent retailers had a 60% share of the food retail market. By 2000, their share was reduced to 6% while the multiples share increased to 88%
• With high streets disappearing and town centres shrinking, we are losing a focal point for community life and a place for meaningful interaction between people of different classes, cultures, ages and lifestyles. According to Caroline Lucas MEP, half the nation now shops in 1000 giant superstores.
• There a number of reports published illustrating the effect of supermarkets on local jobs. These are discussed in the Competition Commission report (2000). Whilst some claim that the number of jobs increases, the British Retail Planning Forum (1998), embarrassingly financed by the supermarkets themselves, discovered that every time a large supermarket opens, on average, 276 jobs are lost. It found that there is 'strong evidence that new out -of-centre superstores have a negative net impact on retail employment up to 15 km away'.
• Money spent in a supermarket is spirited away to shareholders and management staff, rather than staying in the community where it has been spent, supporting local businesses and their suppliers. • With no strong attachment to place, the supermarkets can easily use job cuts as a safety net for ensuring profits - unskilled labour is fairly dispensable. Whilst both Sainsbury and Asda have claimed that they will create 10, 000 jobs each during 2002, supermarkets also close unprofitable stores to protect profits.
• Supermarkets have overseen the near eradication of small-scale retailing entrepreneurs. Those who survive live in fear of supermarket special offers promoting goods cheaper than an independent retailer can buy from a wholesaler. • Only serious measures to clamp down on persistent below-cost selling or 'loss leaders' can halt this. France, Germany, Ireland Spain already have legislation to prohibit the selling of goods below the price paid by the retailer to the farmer.
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