Sainsbury’s franchise

October 5, 2011 § Leave a comment

People in New Cross are complaining about the proposed opening of a new smaller sainsbury’s. They want to keep the local business in business.

This issue has been around for years and years. People say they want a separate butchers, bakers, patisserie etc. Personally I think the odd one is charming but I’m quite happy to go to a supermarket because it’s quicker.

But an option for sainsburys to please these people is this. Sainsbury’s can make a francise of separate butchers etc. The businesses would be run by the independant butcher – but they would stock some sainsbury’s goods as well as their own and give a certain amount of profit to them. There would be next to no sainsbury’s branding in the shop, apart from a small sign somewhere to certify that it’s part owned by sainsburys. That way the business can have the shop their own way and make a more individual experience for the shopper.

That way, the shopper is happy because they get something different from boring sainsburys and specialised knowledge from the staff. The staff are happy because they don’t have to compete with sainsburys for business and they get business support too. Sainsburys are happy because they reach a new part of the market and don’t have to be so involved in day to day running of some shops but still make money.

The problem with all this is that people who don’t want to team up with a supermarket are going to lose out. We are moving ever more towards big business and if we’re honest, that is new cross’ and other people’s real objection. Small businesses cannot survive the way they are now. But if they’re losing they must change to survive in my opinion.

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