Last week I looked at the way disruptive change is happening in the electricity supply industry. Today it’s time to look at supermarkets. Here in Herefordshire the new Cattle Market development has just opened. I had been very much against it. The last thing Hereford needs is yet more shops, especially when there are so many empty ones already. We need to wean ourselves off identifying ourselves as consumers and off our debt fuelled excessive and wasteful consumption patterns. That said one of the new stores is a branch of Waitrose, which operates under a different business model from the big four; Tesco, Asda, Sainsburys and Morrisons.
Waitrose doesn’t have shareholders. It is part of the John Lewis Partnership and all its staff are partners in the business, sharing in the profits via an annual bonus paid as an equal percentage of salary. This means that the 91,000 people who work for the group should in theory be much more motivated, engaged and enjoy their work more than staff in other supermarkets. Looking at carbon emissions and other sustainability criteria, Waitrose out-performs the big four, but not Marks & Spencer or the Coop. Next time I go shopping I’ll pop into Waitrose and see if I can have a chat to one or two of the staff in our new store and see what they think about all of this.
It seems important to me that we need alternatives to the shareholder-driven profit-maximization principle behind our big companies, be they supermarkets or electricity suppliers. We want organisations that are more ethical, more concerned to help reduce their environmental footprint, more concerned to help put funds into charitable causes and into treating their staff well and not into the endless greed of shareholders. I and many others are switching our purchasing power to reflect these preferences. I see Waitrose’s market share has risen pretty steadily over the last 20 years, and is now just under 5% of the UK grocery spend: plenty of scope for them to grow, and for more ethical and innovative new entrants to the market.
Displacing the big incumbents in the supermarket sector may prove a slower process than in the electricity supply sector…but disruptive change is coming. Let’s work to make it as positive as possible!