Monday 17 August 2009

Competition !

Development plans to create new Aldi and Woolworths supermarkets in Wollongong's northern suburbs have brought wails of anguish from existing traders. Many claim that these new stores in Bulli and Woonona will force them to shut their doors and turn the existing shopping centres into ghost towns.

It might be a good idea to turn back the pages of history - and have a look at what happened in Helensburgh several years ago.

A proposal for a new Bi-Lo supermarket in that historic little mining town brought the same predictions of doom. It was claimed that a supermarket - with it's cheap priced groceries - would ruin the " village atmosphere " and send all it's competitors to the wall.

The protests were ignored. The supermarket was built - and absolutely nothing happened to decimate the existing shops in the town.

In fact, the shopping centre has expanded.

All that really happened is that the local grocery purchases changed from supermarkets in Miranda or Wollongong to the local store. They never were being made at the convenience shops.

If anything, the small shops got a bonanza because instead of shopping out of the area many locals used the new supermarket for their grocery purchases - and patronised the smaller stores for their non-grocery needs.

When lack of a supermarket caused them to shop in another area, their non-grocery needs were sourced on that suburbs small shops.

History is a better guide of what happens in similar situations !

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