There is often talk of the negative aspects of economies of scale, a good example being supermarkets in the UK. People complain that supermarkets dictate and control prices so the poor suppliers suffer and that small shops can’t compete so we lose the cute little butchers, bakers and grocers.
I’ve not thought much on the matter before but since I recently moved to Norway I miss the big supermarkets and I think that the people who complain about them are just nostalgic, poorly informed or unrealistic! Who wants or has time to go to ten shops to do their food shopping? As for the farmers – a contract with one of the main supermarkets is worth millions and if farmers have to compete more then it will usually be better for the consumer. Intensive farming, now that will need a thread of its own!
Go to a large Sainsbury’s or Tesco and the choice is incredible, everything is very fresh, fruit and vegetables are perfectly formed*, you can get everything you need in one place and everything they sell is cheaper than in most small shops. Even smaller supermarkets such as Spar just can’t compete! It's just economies of scale - basic economics.
*Many restaurants take fruit and vegetables that supermarkets reject because the taste is not affected by cosmetic appearance. Many chefs also complain we are more concerned with the look rather than taste of food. If we are honest with ourselves though the presentation of our food is very important to how appetising we find it, the supermarkets are driven by consumer demand so why complain when they give us what we want!
I’ve not thought much on the matter before but since I recently moved to Norway I miss the big supermarkets and I think that the people who complain about them are just nostalgic, poorly informed or unrealistic! Who wants or has time to go to ten shops to do their food shopping? As for the farmers – a contract with one of the main supermarkets is worth millions and if farmers have to compete more then it will usually be better for the consumer. Intensive farming, now that will need a thread of its own!
Go to a large Sainsbury’s or Tesco and the choice is incredible, everything is very fresh, fruit and vegetables are perfectly formed*, you can get everything you need in one place and everything they sell is cheaper than in most small shops. Even smaller supermarkets such as Spar just can’t compete! It's just economies of scale - basic economics.
*Many restaurants take fruit and vegetables that supermarkets reject because the taste is not affected by cosmetic appearance. Many chefs also complain we are more concerned with the look rather than taste of food. If we are honest with ourselves though the presentation of our food is very important to how appetising we find it, the supermarkets are driven by consumer demand so why complain when they give us what we want!