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Small shop closures are progress, says ex-Tesco boss

  • 3 February 2013
  • From the section UK
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Sir Terry Leahy
Image caption Sir Terry Leahy was instrumental in the rise of Tesco to become Britain's biggest retailer

The former boss of Tesco has described the rise of supermarkets and closure of small shops as "part of progress".

Speaking on BBC Radio 4's Desert Island Discs, Sir Terry Leahy also called some High Streets "medieval", saying the way people lived their lives had changed.

Sir Terry said seeing boarded up local shops was sad, but this happened because consumers were choosing to shop at the bigger supermarkets.

The benefits of out-of-town stores outweighed the downsides, he added.

When asked if he thought it was just "tough" that a family butcher had to close because it couldn't compete with the "three-quid chicken" sold at the supermarket, he said: "Small benefits for thousands of families can be a big loss for the family of the butcher but you can never be casual about it.

"You have to ensure the better organisations come through."

Sir Terry got his first job at a Tesco in Wandsworth, London, when he was 17-years-old so he could support himself during sixth form college.

The third of four sons, he grew up in a prefab on an estate in Liverpool. His father was a greyhound trainer and his mother was a nurse.

He said he couldn't please everybody when it came to views on supermarkets over small High Street stores.

"If you talk to people, 95% of the population quite like supermarkets but 5% don't, but in Britain this (5%) is three million people so they have a right to say what they think.

"I felt very strongly inside that Tesco was doing the right thing, in terms of how it was conducting its business, how it was serving ordinary people and how it was employing ordinary people but I realised I wasn't winning the argument for some people."

Large chains

The British Independent Retailers Association said 98% of the the UK's £150bn grocery industry was controlled by just nine stores.

But deputy chief executive Michael Weedon claimed there could be a silver lining for smaller businesses.

He said as large chains such as HMV and Blockbuster closed, more retail premises would become available at cheaper rents.

Among the tracks Sir Terry chose to take with him to a desert island were The Beatles' I Want To Hold Your Hand, Simon & Garfunkel's Homeward Bound, Depeche Mode's Just Can't Get Enough and Pachelbel's Canon in D.

He said he would also take The Complete Works of Charles Dickens and his luxury item would be tea.

As chief executive, he made his name transforming the supermarket from a lacklustre brand into Britain's biggest retailer.

Desert Island Discs with Sir Terry Leahy was broadcast on BBC Radio 4 at 11:15 GMT on Sunday 3 February

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