Concerns raised over Shoprite sell out to Tesco

Tue, 10 Oct 2023

Several MHK’s and local businesses have raised their concerns for where this will leave local producers following the news that Shoprite have sold all of their stores to supermarket giant, Tesco.

Davisons ice cream took to social media and expressed its concerns over the supermarket sell out, it said the sale ‘isn’t particularly good news for the Isle of Man food producers’.

Adding: 'Shoprite Isle of Man along-side Robinson's Fresh Foods are some of the best supporters for locally produced products, especially when it comes to starting off in the industry, and without that stepping stone to help producers get a foot in the market it’s going to be hard for anyone thinking of coming in.'

It has called for Isle of Man Food and Drink to look into ‘some form of agreement to allow local producers the chance to get there products in to stores across the Island’.

David Ashford MHK for Douglas North took to social media to explain that his primary concern is that the impacts the sale could potentially have on other local businesses.

He said that the Department of Enterprise and Department of Environment, Food and Agriculture ‘need as a matter of urgency to now be engaging with both local suppliers and Tesco on how that is going to be achieved’.

Ashford also highlighted that there appears to have been little to no prior consultation with government about this merger before it happened.

Fellow Douglas North MHK, John Wannenburgh commented on the potential redudencies saying: “Circa 280 staff in the stores and warehouse will move across to Tesco. Circa 60 staff at head office across finance, marketing and buying will be put on notice of redundancy and 13 will be immediately affected.”

The Chamber of Commerce have said it 'understands why this news is of great concern to the business and wider community'.

It said: “For generations the owners, management team and staff at Shoprite have been at the heart of the Island’s community. During that time the business has been a major employer, and supported the local economy by choosing to partner with many on-Island suppliers and service providers.

“As always, Chamber is here to offer whatever support we can to members – including Shoprite and the company’s suppliers – who are affected by this news. Looking ahead, we welcome the new owners’ long-term commitment to operate the nine stores under the Tesco brand – and to support the local food and drink sector. Chamber is keen to see partnerships with IOM businesses continue as Tesco moves forward.”

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