Race to the bottom?

Cleveleys is a district centre sandwiched between Blackpool and Fleetwood on the Fylde coast in the north west of England. With one of the country's highest penetrations of elderly people it has also been home to one of the best discounter retail operations around. Locally founded B&M Bargains has gone from strength to strength and the once the originators sold out it has expanded. Such was the pull of B&M Bargains that one could get coach trips from nearby Lancashire towns to visit the store.



But now B&M faces increased competition in the centre: Wilkinsons and Home Bargains, the latter occupying the former Woolworths store. So what's to choose between them? On a visit earlier today, not a lot seems to be the answer. What appears to have happened is that the trade has been spread between the three where B&M once used to be the king pin.



So where to now for these three? Price wars result in customers becoming ever cannier, and all retailers destroying their margins until the last man is left standing. Then the survivor can raise prices. But retailing has low barriers to entry so a new retailer may join the fray.



Interesting times.