ECONOMIES OF SCALE

OK – on the surface a production line is economically more efficient – certainly for a complex piece of machinery like a car. However does the same rule apply to quality products produced on a small scale – artisan breweries and gin producers seem to be doing fine economically. I wonder if their workers feel the same? I suspect their is some pride in their product and hopefully wages are higher than those offered by large scale firms bought out by hedge fund managers. Cadbury’s at Keynsham was doing very nicely until bought out and production moved overseas, despite being profitable. Profit is a P word worse than the C word in my book.

However thoughts about the High Street was what triggered this meandering thought process. Are the supermarkets more efficient than the local shops? wages are lower – job satisfaction I would guess is lower, customer satisfaction is totally down to the lower prices. Supermarkets are coming to realise this with most opening local stores. With home delivery it makes a nonsense to drive into, for me Weston-super-Mare, to do a weekly shop. I now go for a monthly one, mainly to buy the quirky things from Waitrose being a middle class lefty person! The big supermarkets force farm prices down to sub profit levels at times, and I am sure encourage poor environmental practises at times.

It was not long ago that every village would have had a bakery, a butchers (or 2), a chemist, a general stores and a newsagent. I am not looking back with nostalgia but believe the service, the wages and job satisfaction probably outweigh the social cost of factory shopping. In my local shop your shopping will be taken to your car for you if you should need it, I will collect a paper for the guy who struggles to get around despite it being the Telegraph, and hold the dogs leads while a lady collects her shopping. The banter is not intrusive but genuine concern for well being. I am sure this is mirrored across the UK. The retail food market will need reinvention. Delivery of tins and essentials like cleaning materials where it is often quantity rather than quality. Specialist butchers and fishmongers who may also deliver in conjunction with supermarkets. Oh I am rambling now and have lost the thread! I think what I am saying is that many products are ubiquitous and do not need shops, just warehouses. But other products are invaluable in their uniqueness. The latter have lost out as business rents have increased and supermarkets have cornered the market.

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