Shop Hours and Competition

Quick points

(1) Multinational chain store coporations want extended trading hours. Forcing all shops to be open longer will destroy the smaller, "family run" shops. This will result in a clear benefit for the larger shops -- less competition, more market control, more profits.

(2) Coles have recognised that they cannot defeat Woolworths. Instead, they aim to gain market share at the expense of smaller, "family run" shops.

Logic and waffle

Why do shopkeepers want longer shopping hours? Is it to allow their customers more choice in when they shop?

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Well, even the kindest of us would not expect that rich businesses want changes solely to benefit their customers. So what is the benefit to the shopkeepers?

Do they expect us to spend more money in their shops because we have more time to spend it? That's possible. Though I would hope that extended shopping hours would lead to more time to choose... More time to browse and compare. Total spending may go up -- but there is (I hope) a limit to how much people are willing to spend just because there is a shop open.

Does every shopkeeper support extended shopping hours? Not really...

Extended shopping hours are supported, largely, by the larger shops and chains. By the businesses which can easily afford a few extra staff, if there are commercial -- or strategic -- benefits.

Then there are the "small" shopkeepers. The family-run businesses. Where the shop is your life and the rest of life fits in between shop-open hours. How will they cope with longer shopping hours? They won't...

Imagine that you are a small trader, owner and manager and sales assistant etc etc etc... for a local shop. You work long hours: behind the counter when the shop is open, in the office, stock room, etc when the shop is closed. Now imagine that the shop is open for more hours each day...

You must now spend more time behind the counter. You have a choice: less time planning, managing, restocking, etc -- or less time for a life outside the shop.

Sure, you could hire extra staff. An easy decision for a chain store -- just tell Personnel to hire more staff. For the sole trader, hiring and managing staff is just one more burden.

So what happens? You want time for a life of your own. You sell the shop to a multinational conglomerate. They demolish your shop and build extra parking at their not-quite-so-local shopping centre. You get a job there, as a sales assistant.

And that is the basis for wanting longer shopping hours: competition. Or, rather, reduction of competition.

Larger companies have all the office organisation set up to hire more staff, to be open longer hours. Their smaller competitors cannot handle the extra work; they will be forced to close. The result will be, less competition for the larger shops, larger market share for the larger shops, in the long run more profit for the larger shops and less choice for us, the customers.

Footnote on Coles

Coles are opening a "new style" of store. Flasher, with more emphasis on fresh produce. Why are they doing this?

Coles' major competitor is Woolworths. Coles -- according to their boss, as reported in the paper -- are not able to take market share from Woolworths. Instead, they will compete with the local butcher, the local deli, the local grocer...

You thought that competition was good? Only when it can be destroyed...

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