Paphos – March 2005
It all started just before last Christmas.
As the big supermarkets readied themselves for the annual consumer stampede, so the government prepared to pass a bill regulating working hours which would restrict the stores from working late, weekends and Wednesday afternoons.
The law was ignored and the stores that broke it got landed with a CYP 50 pounds fine.
No, really, there’s no typo there – it was fifty pounds, what you and I may spend on half a trolley’s worth these days.
But, it doesn’t end there. The big boys, 50 of them including E&S, Papantoniou, Chris Cash & Carry, Orphanides and many others, threatened to change their status to that of kiosks which have far more flexible opening hours. Hence the feeble ‘ΠΕΡΙΠΤΕΡΟ’ (‘kiosk’) banners flapping imposingly at every shop’s entrance.
The supermarkets are angry that kiosks and bakeries are allowed to break the law on what goods they can sell. In effect they have transformed themselves into 24 hour mini-markets.
The reaction against the smaller shops from the Cyprus Hypermarket Association had initially prompted the Pancyprian Kiosk Association (PASYPE) and the Convenience Store Union (SYKADE) to stop the sale of the state lottery tickets as a protest against the government’s Labour ministry bill which restricted their store areas to 50 square metres and prohibited them from selling essentials such as coffee, alcohol, biscuits and basic toiletries.
In early March the two associations began selling the lottery again as a goodwill gesture to the ministry but threatened to step up their campaign (whatever that means) if the bill is not ‘reconsidered’.
In the mean time, kiosks also got some banners printed. The funereal white lettering on black canvas reads: ‘If the bill goes through, this shop will close’.
Sad though you may be at your friendly corner kiosk closing down, consider also the aforesaid ‘bakeries’ that have invested a hefty sum in their island-wide shop fronts that may now have to shrink to 50 square metres and hope there is a massive demand for pumpernickel bread between one and five in the morning.Why did the Hypermarket Association complain? Why did they bring attention to what would surely have become a lucrative ‘investment’ for themselves as they see their power grow on a scale similar to that of the big fish in the U.K., Europe and North America?
Why didn’t they just open mini-markets of their own and take advantage of the government alleged inactivity, use their economic prowess and obliterate the competition?Underlying the whole argument here is essentially that the hypermarkets, here as well as abroad, are dictating terms to elected governments, farmers and ultimately consumers.
In the U.K. the ‘big five’- Tesco, Sainsbury’s, Asda, Safeway and Somerfield account for approximately 80% of grocery sales. They wield enormous economic power. Their buyers force down prices by negotiating bulk contracts with farmers. They dictate the size and breed of animal. These supermarkets are in the business of making super profits, not providing cheap food.
These same supermarkets have moved into the ‘convenience’ sector. An economic growth area, as cash-rich, time-poor consumers are on the rise. Tesco alone has acquired hundreds of these stores. The traditional cornershop simply cannot compete on price and range.
As these hypermarkets travel throughout the nation, growing as they devour the smaller retailers, so too do they start to eat up each other. Wal-Mart’s recent ‘merger’ with Asda makes it a retail equivalent of a superpower. In 2002 its profits exceeded that of Exxon. In effect, it has become the biggest company in the world.Naomi Klein’s ‘No Logo’ had a great impact on the thinking consumer. A self-proclaimed ‘call to arms’ against unrestrained globalisation, Klein’s bestseller exposed Wal-Mart’s ‘stack ‘em high – sell ‘em low’ policy for what it was: providing less choice to the consumer by effectively removing any competition (and range of choice).
I have no choice but to buy the same tasteless, water-filled tomatoes every week. Local bananas have to make way for better looking, less tasty imported ones.As Cypriot and ex-pat consumers begin to take more of an interest in where their food comes from and what choices are available to them, so too will the hypermarkets have to find a way to respond in a convincing manner.
We will also lament the loss of the local store that was once a social gathering point. Gone are the days the shopkeeper knew your name, your kid’s favourite football team and had the time to tell you a bad joke or two.
Now I have become a ‘loyal customer’, a bonus card holder that looks forward to reaching the 10,000 points I need to get a food processor or 4 slot toaster!Our outdoor ‘markets’ are becoming more useful as tourist attractions, located as they are in inconvenient, congested central areas. Even the vendors have become tourist-savvy, knowing they can more easily sell a bag of oranges to a couple from Solihull looking for a photo opportunity than a busy housewife or discerning caterer.
As the big supermarkets readied themselves for the annual consumer stampede, so the government prepared to pass a bill regulating working hours which would restrict the stores from working late, weekends and Wednesday afternoons.
The law was ignored and the stores that broke it got landed with a CYP 50 pounds fine.
No, really, there’s no typo there – it was fifty pounds, what you and I may spend on half a trolley’s worth these days.
But, it doesn’t end there. The big boys, 50 of them including E&S, Papantoniou, Chris Cash & Carry, Orphanides and many others, threatened to change their status to that of kiosks which have far more flexible opening hours. Hence the feeble ‘ΠΕΡΙΠΤΕΡΟ’ (‘kiosk’) banners flapping imposingly at every shop’s entrance.
The supermarkets are angry that kiosks and bakeries are allowed to break the law on what goods they can sell. In effect they have transformed themselves into 24 hour mini-markets.
The reaction against the smaller shops from the Cyprus Hypermarket Association had initially prompted the Pancyprian Kiosk Association (PASYPE) and the Convenience Store Union (SYKADE) to stop the sale of the state lottery tickets as a protest against the government’s Labour ministry bill which restricted their store areas to 50 square metres and prohibited them from selling essentials such as coffee, alcohol, biscuits and basic toiletries.
In early March the two associations began selling the lottery again as a goodwill gesture to the ministry but threatened to step up their campaign (whatever that means) if the bill is not ‘reconsidered’.
In the mean time, kiosks also got some banners printed. The funereal white lettering on black canvas reads: ‘If the bill goes through, this shop will close’.
Sad though you may be at your friendly corner kiosk closing down, consider also the aforesaid ‘bakeries’ that have invested a hefty sum in their island-wide shop fronts that may now have to shrink to 50 square metres and hope there is a massive demand for pumpernickel bread between one and five in the morning.Why did the Hypermarket Association complain? Why did they bring attention to what would surely have become a lucrative ‘investment’ for themselves as they see their power grow on a scale similar to that of the big fish in the U.K., Europe and North America?
Why didn’t they just open mini-markets of their own and take advantage of the government alleged inactivity, use their economic prowess and obliterate the competition?Underlying the whole argument here is essentially that the hypermarkets, here as well as abroad, are dictating terms to elected governments, farmers and ultimately consumers.
In the U.K. the ‘big five’- Tesco, Sainsbury’s, Asda, Safeway and Somerfield account for approximately 80% of grocery sales. They wield enormous economic power. Their buyers force down prices by negotiating bulk contracts with farmers. They dictate the size and breed of animal. These supermarkets are in the business of making super profits, not providing cheap food.
These same supermarkets have moved into the ‘convenience’ sector. An economic growth area, as cash-rich, time-poor consumers are on the rise. Tesco alone has acquired hundreds of these stores. The traditional cornershop simply cannot compete on price and range.
As these hypermarkets travel throughout the nation, growing as they devour the smaller retailers, so too do they start to eat up each other. Wal-Mart’s recent ‘merger’ with Asda makes it a retail equivalent of a superpower. In 2002 its profits exceeded that of Exxon. In effect, it has become the biggest company in the world.Naomi Klein’s ‘No Logo’ had a great impact on the thinking consumer. A self-proclaimed ‘call to arms’ against unrestrained globalisation, Klein’s bestseller exposed Wal-Mart’s ‘stack ‘em high – sell ‘em low’ policy for what it was: providing less choice to the consumer by effectively removing any competition (and range of choice).
I have no choice but to buy the same tasteless, water-filled tomatoes every week. Local bananas have to make way for better looking, less tasty imported ones.As Cypriot and ex-pat consumers begin to take more of an interest in where their food comes from and what choices are available to them, so too will the hypermarkets have to find a way to respond in a convincing manner.
We will also lament the loss of the local store that was once a social gathering point. Gone are the days the shopkeeper knew your name, your kid’s favourite football team and had the time to tell you a bad joke or two.
Now I have become a ‘loyal customer’, a bonus card holder that looks forward to reaching the 10,000 points I need to get a food processor or 4 slot toaster!Our outdoor ‘markets’ are becoming more useful as tourist attractions, located as they are in inconvenient, congested central areas. Even the vendors have become tourist-savvy, knowing they can more easily sell a bag of oranges to a couple from Solihull looking for a photo opportunity than a busy housewife or discerning caterer.
Until the slogan war is over, the consumer can only yawn disdainfully and try to elicit a smile from a soulless cashier as a good portion of his wages bleeps through the laser.
In our own ‘local’ hypermarket, shoppers are forced to enter battle over the twenty or so baskets that are available, probably to the amusement / bemusement of very bored staff. As I wander from cashier to cashier looking for used baskets like a search for fresh eggs hidden away in straw, I can’t help but think that they really have got this market cornered…
In our own ‘local’ hypermarket, shoppers are forced to enter battle over the twenty or so baskets that are available, probably to the amusement / bemusement of very bored staff. As I wander from cashier to cashier looking for used baskets like a search for fresh eggs hidden away in straw, I can’t help but think that they really have got this market cornered…
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