The Guv'nor Dennis Griffiths
Stopping below-cost sales would help us all
As any regular reader of this column will know I am not a massive fan of supermarkets. But I am, if nothing else, a fair man. So when I heard earlier this week that the big four are struggling a
little bit I wondered if I could help.
According to news reports, Aldi and Lidl food sales are up 25% to 35% as they are selling their food products cheaper than the big four supermarkets at the present time — so their food sales must be dropping accordingly. As the big four have greater buying power than Aldi and Lidl they should be buying in their food products much cheaper.
So here is my suggestion to the large supermarket chains. Stop selling alcohol below cost price. You may think this incredible, but you may also consider selling it at a reasonable profit. Then you will not have to pass on the millions of pounds lost to food products. You will then become cheaper than the smaller supermarkets.
There will, of course, be repercussions from this action.
1. The selling price of your alcohol will, of course, increase (but you will still be far cheaper than a public house).
2. It will probably reduce binge drinking.
3. A recent report found that admissions to our hospitals due to alcohol-related illnesses have doubled this year. As sales in pubs have dropped drastically, this rise can be attributed to below-cost selling in supermarkets. So higher prices in supermarkets must be good news for the nation's health.
4. The licensed trade, now in tatters, will still not be on a level playing field, but at least we will be on the same field.
5. Supermarkets will have to start paying more VAT on their alcohol sales as we in public houses have to. But on the bright side this will fund the Government purse and may stop the Chancellor increasing duty as promised — duties that in the past supermarkets have not put on alcohol but passed onto zero-rated goods.
6. Inflation will decrease due to lower food prices.
Come to think about it, the repercussions will not be so bad, will they?