Days of Future Passed

When asked the price of a loaf of bread this week, the Prime Minister admitted that he didn't really know. His ignorance wasn't due to him not doing any shopping. It was refreshing to learn that he bakes his own bread. A debate ensued as to whether you could replicate the 47p loaf which the retail behemoth Tesco churns out. Unsurprisingly, the Tesco price could not be matched because they are baking in much larger numbers. The comparison ends there. The taste of a home baked loaf is without compare irrespective of your baking experience. This morning brought depressing news for the retail giants Tesco and Sainsbury. The former has seen a plunge in their quarterly profits as customers seek greater value for money elsewhere. The problem for Tesco is that their larger stores with massive cost bases are situated a long way out of town. As such, customers have to drive there to shop. Driving has seldom been more expensive than it is today and people are starting to think twice about every journey. This explains why Sainsbury has reported a rise in quarterly profits. Not because of their large out of town stores but because of their town centre smaller shops. This confirms my long standing view that the High Streets of the UK are due for a renaissance. The retail madness of the last 20 years as bigger and bigger stores have opened was always destined to end in tears. Today's news appears to confirm my view and I look forward to the return of a community driven High Street on the street where I live. The new retailers of Lidl and Aldi have merely filled the gap vacated by the demise of Kwik Save. That gap will always be in the market because it is affordable for the great many who have to watch every penny. They will augment rather destroy the High Streets though and therein lies the difference.