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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Study shows need to increase retail capacity

12 September 2006

​​1 August 2005

There is scope for another large supermarket in the Island, according to an independent report on Jersey’s retail market published today by the Economic Development Committee. However, the Committee is now seeking the views of the retail industry and consumer interest groups on the likely impact of allowing any significant additional retail space in Jersey.

The study by retail consultants Experian reveals that the Island’s retail sector is overtrading (retail space is not sufficient to cope with the level of expenditure) and failing to capitalise fully on its potential. The need for new floor space, it says, is most acute in convenience goods – food and other consumables. There is also room for more space in the non-consumable sector (goods such as clothes and electrical goods) where the need is most pressing for bulky goods like furniture, carpets, DIY and electronics.

Deputy Mike Taylor of the Economic Development Committee explained that the report was commissioned to assess the current shopping dynamics in Jersey. He said, “Experian conclude that the structure of the retail market in Jersey, particularly on the convenience side, is significantly different from that in the UK and contributes to price differentials between Jersey and the mainland. A new entrant into the Jersey market could help alter this structure and release some economic benefits for the Island in terms of lower prices and improved productivity and that is why the Committee wants to consider the issues the report raises further.”

The study finds that the Island’s retail market could comfortably absorb another 125,000 sq ft of additional floor space for convenience goods. When various pipeline developments are taken into account this falls to 55,000 sq ft which still represents a supermarket that is roughly double the size of any currently in the Island. On the comparison goods side, there is scope for an additional 110,000 sq ft when pipeline developments are factored in, which would also equate to a development some 60 per cent bigger than that at Queen’s Road.

Deputy Taylor continued: “We are encouraging retailers and consumers to read this detailed study and give us their views on its implications. The committee feels that the report has potential positive implications for competition, lower prices, consumer choice and productivity – all of which are central to the States Economic Growth Plan. We would welcome input from all parties with an interest in these issues so we can gather further evidence of the likely consequences of additional retail space.

“Once the committee has views from all parties concerned it will consider what can be done to allow new retail space to be established – if this proves desirable – and whether there are any barriers to new entrants. This could include making the report available to retailers outside the Island and also ensuring that the Environment and Public Services Committee is fully aware of the potential economic benefits of more retail floor space.”

The report is available online and hard copies can be obtained from Andrew Jones on 705532. Interested parties are asked to put forward their views by 16 September to Andrew Jones, Economic Development Department, 26/28 Bath Street, St Helier, JE2 4ST. There will be a workshop later that month to allow discussion of the main issues arising.

ENDS

For more information, contact:

Deputy Mike Taylor, Economic Development Committee. Telephone 853076

Dougie Peedle, Economic Adviser. Telephone 603465
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