By Ed Haigh
Terry Leahy is right. The CEO of Tesco is a brilliant businessman who has achieved phenomenal success, and when he defends that success by saying that he is ‘just giving customers what they want’, he is spot on. People are panic-buying 24 hours a day at Tesco because they do what they do so incredibly well. Have you been in there recently and seen some of their deals? They’re amazing. Seriously.
His detractors level just about every accusation under the sun at him, to which he responds with eloquent, rational arguments. Some accusations are trickier to explain away than others, but virtually none can trump the ‘giving customers what they want’ response, and he knows it. Even the accusation that has been designed specifically to trump his trump card, that ‘customers don’t have a choice’ doesn’t really hold as much water as people pretend it does. There is choice. You have to look a bit harder in some areas than you used to, but if you’re willing to put in even a little bit of effort, the choice is there. BigBarn now lists 7,400 other choices on this website. The fact of the matter is that people are shopping at Tesco because they want to. They’re shopping at Tesco because they like it.
And that tends to be where the argument fizzles out a bit. At the hard end of the debate, at precisely the moment it should get interesting, all the politicians, all the campaigners, all the journalists and all the business people step down from their soap-box and quietly disappear. Why? Because nobody from any organisation, especially not businesses, political parties or the media, dare make the obvious next statement in the argument for fear of committing commercial, political or social suicide. Nobody dares to say that the customer, especially when that customer is a third of the British population, is wrong.
One third of the people in this country are wrong. In fact, now that we’re saying it, let’s go one step further. One third of the people in this country aren’t just wrong – they’re not even intelligent enough to know that they’re wrong. And all of those people are in the palm of Mr Leahy’s hand. He just has to fill his shelves with the things they want, at the price they want, and trot out little adverts about every little helping, and people think he’s on their side. That he understands. Which, of course, he does. He understands so well, in fact, that he has just announced profits of £2.55 billion for the last year. All from giving the customer what they want.
Well, perhaps the vast majority of customers shouldn’t be allowed what they want. What they want destroys themselves and their children. It cripples the health service, the countryside and the planet. It’s just an idea, but perhaps they should be stopped from doing that. Perhaps it would be better for everybody if Mr Leahy stopped giving customers what they want.
There are signs that he is starting to see things differently. The NFU has done some fantastic campaigning on behalf of dairy farmers, and Tesco has responded by raising its milk prices. It’s safe to assume that’s not what most customers would want, but it has been done anyway. Is it an indication that Tesco is starting to accept the fact that with power comes responsibility? We hope so. That’s what we want.
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