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15
Nov
Supermarket wars: Who will be the winners and losers when Tesco opens in Ripon?
The retail landscape in Ripon will change on Thursday (November 20) when Tesco opens a supermarket.
Ripon is already well served with supermarkets: there’s a Sainsbury’s, Morrisons and Aldi, as well as an M&S food hall.
So the arrival of the UK’s largest supermarket in the heart of such a small city is bound to shake things up, and cause some to suffer.
The loser, however, isn’t likely to be Tesco. It is by far Britain’s largest supermarket with 28.2% of market share. Sainsbury is second with 15.7%, followed by Asda with 11.6%, Aldi with 10.6% and Morrisons with 8.2%.
Sarah Johnson, retail expert and director of Flourish Retail, says:
That scale gives Tesco a clear advantage in pricing, promotions and perception. With Clubcard prices and Aldi price match, Tesco is seen as both affordable and familiar. When a new store opens, there’s often a ‘curiosity dip’ for competitors as shoppers head there to compare prices and experience. Even loyal customers at other supermarkets are likely to visit at least once out of interest.
Aldi in Ripon
'One-stop destination'
Booths, which previously occupied the space Tesco now fills on Marshall Way, was known as the ‘Waitrose of the north’ because of its upmarket reputation. Its main rival was widely considered to be M&S — and it is perhaps no coincidence that its Ripon demise came shortly after M&S expanded its food hall at St Michael’s Retail Park.
Tesco’s arrival, says Ms Johnson, shifts the mix in Ripon “toward a more mainstream, value-led offer”. She adds:
Tesco often adds categories such as clothing and home to draw in customers and boost footfall, helping it become a one-stop destination and reducing how often shoppers visit rival supermarkets.
Clare Bailey
Clare Bailey, who runs the Retail Champion website, agrees Tesco is likely to blow a hole in traditional shopping patterns.
Shoppers, she says, often go to bargain outlets such as Aldi or Lidl for basic items and elsewhere for luxury products. Tesco provides the option to do both at once.
She says:
Tesco is good at bridging the gap because they have prices that match the discount supermarkets, but they are also beginning to encroach on the likes of M&S in the luxury areas. It’s a one-stop shop.
Both experts feel Sainsbury’s, which is based in the Market Place, and Morrisons, which is out of the city centre on Harrogate Road, will most feel the impact of Tesco muscling in on their turf.
Shoppers have frequently complained about empty shelves at Morrisons, and it may have to up its game.
Empty shelves at Morrisons
'Good for Ripon'
Although rival supermarkets might suffer, the arrival of Tesco is, says Ms Bailey, good news for Ripon.
Tesco offers two hours parking in the Marshall Way car park for anyone spending £5 in-store, and all vehicles are entitled to 30 minutes free parking regardless of whether or not they spend at the supermarket.
She says:
Tescos that are near to town and city centres can help the wider economy if people park for free because they often do other things and spend elsewhere once they’ve parked.
Ultimately. Tesco is giving consumers choice. It’s good for them and it's good for Ripon.
What happens in Ripon could be reflected in Harrogate, which is also due to get its first Tesco supermarket soon.
The run-up to Christmas will be a good time to tell what impact its arrival in this area of North Yorkshire is having.
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