Review: Tescopoly, Andrew Simms

It’s one of those books you see on the shelf that makes you roll your eyes. Luckily, I was pleasantly surprised. Dotted with statistics and a truly engaging writing style, Simms offers a provocative account of the British retail industry and how it is eating away at our independence. Tescopoly makes a number of arguments: firstly, how high streets are becoming ‘clone towns’; secondly, how supermarkets are unnecessarily invading your privacy; thirdly, the colonial-style global operations; fourthly, the detrimental impact on the environment; and fifthly, how to restore some order. I am only going to cover three of these here: communities, privacy and globalisation.

Communities

Libertarians and liberals rightly fear a state monopoly over services, and especially a cradle-to-grave-type government. This Orwellian picture has shifted, however, towards a new founder for dominance – namely, the supermarket. Tesco won’t just sort all your grocery needs out, but it will also provide: an in-store pharmacy, opticians, alcohol, junk food, healthy food, drugs, house decorations, lighting, music, DVDs, electrical appliances, clothes, plates, cutlery, crockery, washing machines, microwaves, garden furniture, loans, mortgages, credit card and other financial services, mobiles, holidays, insurance, photography centre, broadband, paperwork for a divorce or to make a will. Should we have a problem with this? Yes, if you believe in diversity of produce and freedom of choice. And especially if Tesco takes up to 50 pence out of every pound spent in local economies. The problem with providing all the services above is that it puts local, independent shops and retailers out of business. Local businesses are often governed by an 80/20 rule, in which 80 per cent of profit comes from 20 per cent of goods (p.26). This allows independent shops to stock niche and specialist goods, catering for a wide range of customers in a given community. If, however, a general retailer like Tesco takes away 80 per cent of profits by providing the 20 per cent of high-turnover goods, then independent businesses go bust. Allowing one super store to cater for all your needs might be convenient at first, but if you want variety then that convenience will be out of favour, especially due to supermarket power in terms of below-cost selling and price-flexing (pp.305-6). British towns are turning into ‘clone towns’ with identical high streets across the country.

Privacy

Another point raised in this book is something that could easily be mistaken for identity theft. Tesco boasts that it could produce the following consumer profile:

Mrs Smith is a young adult. She is a Premium shopper. She uses Watford Hypermarket for major monthly shops and Covent Garden Metro for daily requirements. She often shops late in the evening and buys upmarket products. She is particularly loyal to her cat food brand and fine fabric washing powder. She buys Hello magazine and sometimes country life. (p.98)

Tesco will also know her address, phone number and probably her email address. Imagine if Mrs Smith also held a Tesco bank account and her mobile was on a Tesco contract? Tesco holds a record of every single movement and conversation you ever make. All this from a little Clubcard! Neo-liberals will say it’s all for marketing purposes – yet I wonder whether or not Tesco knows a little bit too much about Mrs Smith. And a further note: there are 25 million registered Clubcards, which means that Tesco holds more files on its customers than the notorious East German Stasi ever held on its 16 million citizens (p.96).

Global Operations

A third point from Simms is the global reach of retail. Even the bastion of right-of-centre thinking, the Sunday Telegraph, has said that Tesco’s global operations is a form of ‘neo-colonialism’. To see why, take a look at the reception that Tesco inspectors got from a farm in remote Africa, witnessed by an investigative journalist:

The visit was the visit of a king. They [the community] slaughtered animals. They roasted a lamb. The schoolkids rehearsed welcome songs for three days and gave Tesco presents. Tesco gave nothing back. The adage ‘To those that have shall be given’ came to me. Why would poor Zimbabwean children give present to Tesco when they didn’t even have a school on the farm? (p.206)

The farmers assumed Tesco was a country and its staff were royalty. The low prices in our supermarkets have high costs elsewhere. Simms notes that we are indirectly financing a new form of slavery: a plantation worker in the Dominican Republic gets paid £2.48 for the day (the day being a start at 5am and bed the next morning at 2am); a girl in Bangladesh gets £9 per month to make those £3 jeans in a Tesco store. In a final example: for every £1 worth of fruit (a banana in this case), the producing country gets 12 pence (p.218). Free marketeers will tell me that this is competition in action. Really? Tesco will:

  • Request a financial contribution to place its products on promotional offers, to cover product wastage, to refurbish a store or to open a new store, to the costs of bar-code changes, or to help a specific promotion that Tesco could not afford.
  • Seek improvement in terms (of Tesco) as a condition to display their products, increase the product range or threaten to de-list the supplier.

That’s all well and good, and suppliers should just tell Tesco to stick their business. But seeming as 78 per cent of our goods come from supermarkets, suppliers do not have that choice but must sell to Tesco and others. This is not a ‘free’ market.

There are a few shortcomings to this book: i) no internal investigations of how Tesco works and hires its staff, ii) Simms seems fine to just use someone else’s work to offer solutions on how to tackle the problems, and iii) there is also too much focus on one supermarket. Nonetheless, this book is an essential guide for anyone wanting a broad picture regarding British retail. Read this book!

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One thought on “Review: Tescopoly, Andrew Simms

  1. Pingback: Tesco, you handsome devil, I have had enough of you | Colours on the Mast

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