Monday 11 August 2008

Effects of competition

Oxted has long been a haven for the more independent shop, with national chains being far outnumbered by local businesses. I think it is too early to say that is going to change but I spotted today that the Costcutter on Station Road East has closed. (Now I accept that this is not a particularly local company but bear with me.)

I expect that the one factor that has contributed most to its demise was the re-opening of a Sainsburys in town. This is despite the Sainsburys being much smaller and without much of the range that Costcutter stocked. But the combination of long opening hours and better positioning clearly did for Costcutter, in the same way I expect that Sainsburys might have been the final straw for the greengrocers which has now been replaced (to some protests) by a Costa Coffee.

Only time will tell whether Costa will kill off other local rivals, but I sincerely hope not. The lesson here is that all businesses (whether independents or chains) need to to continue to adapt and change to meet their customers needs. Those that don't will die.

And sadly if to prove a point, I was today in an independent shop in Oxted today which I think has clearly not got it right. I was the only customer and I found it hard to find what I wanted. If it doesn't change I don't expect it will be there in 12 months time.