The pressure increases for lower prices

Tuesday 9th December 2008, 3:00PM GMT.

THE high rate of response to the Economic Development survey on the need for a third supermarket is an indication of the strength of Islanders’ feelings on this matter.

More than a thousand people responded to the survey – which represented a 60 per cent response rate – and 84 per cent of them were in favour of more competition among supermarket outlets. And three-quarters of those in favour of a new supermarket would favour a branch of a British chain rather than one allied to any of the continental superstores.

There is, of course, always the danger of questionnaire bias in surveys of this sort. In this case, the implicit link between greater supermarket choice and lower prices might well have skewed responses.

That said, the survey result can hardly be called marginal. Such a solid outcome cannot be dismissed by those who, because of vested interests or other reasons, favour the status quo. Equally, Economic Development cannot ignore what has been revealed by their exercise. At the very least, they must now explore what can be done to match public opinion with action on this front.

But they must proceed with caution. Economically speaking, these are volatile and uncertain times. If the recession bites and lasts, we could find ourselves encouraging another supermarket to set up shop here only to discover that the Island marketplace is insufficiently robust to support three major players.

There is, meanwhile, the point view of the Jersey Chamber of Commerce. Not unreasonably, its members are concerned about the impact of a third supermarket on smaller traders. Protectionism presents its own dangers, but there can be no doubt that this would be a poorer place if smaller shops were forced to the wall by their inability to compete with retail giants.

In the past, Jersey consumers have, on average, been much less sensitive to price than their UK counterparts. This attitude might have to be modified in coming months as we all look for ways to make our money go further. We should not be surprised, therefore, if pressure for new shopping opportunities – such as Primark as well as a third supermarket – increases over and above the substantial level indicated by the recent survey.