OK, she’s rather overplaying her hand here but fair enough:
But our habits have changed. The recession and prolonged squeeze on incomes has forced us all to remember prices rather more comprehensively. We don’t want the illusion of “choice” that 30-40,000 lines offer, especially when so many of them are just variations on the same theme of highly processed fats, sugars, and salt disguised by additives. We don’t want expensive, cosmetic but tasteless fruit and vegetable perfection. Supermarkets may offer 30-40% of their goods on promotion, but our budgets are limited: we can’t spend any more. Besides, we’ve clocked that their two-for-one offers have all too often disguised longer-term price rises.
Many of us have reverted to the common sense that we used to take with us when we shopped before we were seduced by their complex global supply chains. Strict shopping lists, far fewer impulse buys, smaller baskets of purchases, more frequent provisioning, more locally produced food. We have become, as the industry crudely describes it, promiscuous. Who needs any one grocery brand to define their social position? Much cheaper to shop as and when you need things, rather than fill a trolley with a week’s supplies, a fifth of which will go to waste. Far easier to click online and have shopping delivered than crawl through traffic, battle over parking, wander round aisles looking for products that are constantly moved to make us buy things we never intended to buy. We are unlikely to fall for that particular sell again.
Consumer tastes have changed, producers are having to alter their business models to accommodate this.
this is a colossal market failure.
Dear God the woman’s a cretin. In what manner is producers having to change their behaviour in order to accommodate changing consumer preferences a market failure?
It’s the fucking market in operation fer cryin’ out loud.
A key trigger to current disruption has been the decoupling of the usual relationship in recession between falling incomes and falling costs. When there’s a downturn, you would normally expect supermarket costs to fall too. Instead, driven by global commodity inflation and energy prices, they have been rising rapidly, just when incomes have been stagnating.
Umm, you don’t think the 25% or so devaluation of the pound had anything to do with it?
The supermarket model was built on cheap energy in an era of low oil prices that will never return.
Bit of a hostage to fortune that, isn’t it? After all, there’s a real possibility (possibility only) that we’re about to see a collapse of the oil price.
In a further blow, the internet has thrown up new competitors.
It’s a real market failure, isn’t it?