Tesco at Little Lever - Dossier - Point No 8

Point No 8

Market Share

Here we come to what may be the second most important reason why Tesco want to occupy this proposed development – that is - to increase their market share of Zone 6 convenience spending.

Examining the BRLS figures of where Zone 6 convenience spending occurs, these show that in March 2008 the proportion of that spending in any Tesco store (excluding Metro) was 6.9%.(See Appendix)

This compares with Asda’s market share of Zone six spending of 45.87%

Nationally, Tesco’s market share is slightly short of 30%.

On the assumption that the new development would successfully trade up to capacity, calculations show that the new store could increase Tesco’s market share of Zone 6 spending to 24.11%.

Conclusion

Taken together with Point 1 above, the Committee might be minded to conclude that Tesco’s motives are more to do with their own commercial advantage and less to do with an altruistic attitude to the residents of Little Lever.

 ‘Nothing wrong with that’ you might say, but, respectfully, you are representing the electors of this part of the Borough – not the commercial interests of Tesco.