Stellios opens his easyFoodstore with 25p offers!
Just when the incumbents felt that the discounters had started to become really annoying, this happened. The undoubted king of the discounters, Stelios Haji-Ioannou decided it was time to join the fun with his easyFoodstore - a business selling a range of just 76 products against 30,000 at a large supermarket, and no meat or fresh fruit and veg available.
His rationale? "I have a feeling that there is a gap in the food retail market – a niche below some of the current budget operators such as Aldi and Lidl,” he said.
More here from the Telegraph and also from the Daily Mail
Monopsony power
According to newspaper reports, EasyFoodstore gets its cheap goods from Euro Shopper, a brand of the Dutch non-profit buying alliance AMS. This is a good example of the cost reductions that come from bulk buying, purchasing economies of scale - otherwise known as monopsony power.
Don't assume however that everything is cheaper in an EasyFoodStore! Often individual items can be found significantly lower in price at other discount outlets or via the economy own label brands of the major supermarkets.
Should big four stores worry about launch of 25p easyFoodStore by the easyJet king? https://t.co/aOTFpJFxbF pic.twitter.com/H4F8I1ztPD
— Food Manufacture (@FoodManufacture) February 3, 2016
Shoppers stripped the easyFoodstore so thoroughly it had to close early on its opening day https://t.co/TxPAtHUgF1 pic.twitter.com/JnfxdIBA8d
— Daily Mail U.K. (@DailyMailUK) February 3, 2016
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Graham Watson
Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.
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