Tesco leaves traders 'on the brink' (From Watford Observer)

Tesco leaves traders 'on the brink'

12:51pm Sunday 13th April 2008 in

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Supermarker giant Tesco is set to open two new shops in Watford, prompting local traders to fear their businesses could be pushed to the brink of extinction.

A Tesco Express will occupy a retail unit to be built underneath 16 one and two-bedroom flats on the corner of Whippendell Road and Harwoods Road, which will open in November.

Plans are also in motion for another Express store at 226-228 St Albans Road, Watford, and on the site of a former car showroom in Watford Road, Croxley Green.

Baljit Gill, 29, who opened Gills Superstore in Whippendell Road 18 months ago, said his new business now faced a "make or break" situation.

He said: "Trading is already competitive. Every shopkeeper is fighting for trade at the moment. We're already working at a very low price margin. If I'd have known I wouldn't have bought the shop.

"At the end of the day, I'm a businessman. It's about survival. I won't survive if I don't make money."

Tesco already operates five stores in and around Watford - an Extra superstore in Waterfields Retail Park and Express shops in Prestwick Road, South Oxhey; Harcourt Road in Bushey; High Road, Bushey Heath; and Katherine Place, Leavesden.

An application from Martin Grant Homes to build 16 flats and a shop, with 23 parking spaces, in Whippendell Road was approved in September 2005.

Only two objections were received, neither about the retail space, but traders claim they were "let down" by Watford Borough Council which approved the plans.

And once a plan for a retail unit is approved, the council has no control over who occupies the site and, as a result, it is not required, or in a position to, inform local residents.

Mrs Bharti Patel, 32, has run Urmi News for three-and-a-half years. She has just spent £50,000 upgrading her shop.

She said: "It's not ideal when I've just spent so much money to bring customers in. It's so competitive, I have to bring my profit margin down.

"If Tesco come down here we are finished, literally. We cannot compete with them.

"It's not possible to survive."

Mohammed Akhtar, owner of Medina Stores for 20 years, said: "Over the years, trade has gone away when supermarkets come in. One store will open and 20 will close."

Ashvin Patel, owner of Prajco, added: "This will really affect my business badly.

"I have provided a local community service for more than 20 years. I cannot sell things in my shop cheaper than I buy them. How do I survive?"

Tesco representative Carol Leslie said: "With Express stores, they are convenience stores so their catchment is a kilometre away from the site.

" It focuses on people walking to the store. It might seem in Watford there are a lot but the catchment area is very small.

"Retail is very competitive. It always has been, it always will be. We understand with any change there is going to be concern. But we find with Express stores can act as anchors.

"They can keep people in the area and have a knock on effect where other services in the area can benefit."