What the news suggested was that senior managers and executives took this decision based on the worryingly share increase of not so big supermarkets like Lidle and Aldi. Sainsbury's like Tesco now want to concentrate on making existing shops more appealing to customers.
Bits of memory recall from something I read in the UK Guardian newspaper tell me that this type of decision can be challenged. Aldi and Lidle have only a tiny portion of the market. So expecting them to grow exponentially or taking a bigger share from the big four is not realistic.
What the big four seem to be suffering is from a lack of understanding of the fact that people like you and I do not spend as much as we used to in supermarkets.
The reasons (and I write about what I read plus other bits)? Well, for a start the economic crisis. We have become more conscious, also because we do not want to throw away food that we do not consume (this might explain why the big four still take a big share via express shops). Second (and related to a express way of shopping), some of us have managed to squeeze some flexibility in our lives, so that we still shop but for fewer items when we need to.
This is not to say that we still have a big shopping during the week. Only that we leave things for later when we really need them. What is wrong with that?
Third, online shopping has also made us more aware. The consumer experience online is not leading to prefer online shopping but rather to avoid deception. Just think of the last time you bought something that looked good on the screen, only to find out it was not what you expected. Supermarkets have taken advantage of this type of 'natural' error by keeping your favourite shopping list online. I keep making mistakes by ordering the same without realising that I do not consume some of these 'preferred' ones.
So either physically or online, supermarkets seem to entice us to go back shopping but without considering fully the above reasons.
Ironically I go physically more often to supermarkets than I used to and I notice the following.
Lots of people (including myself) make the trip as an excuse to entertain myself and my kids. We go searching for a bit of fresh air and something nice to treat ourselves and our loved ones. We could do with some add ons, like for instance nicer spaces to seat and have coffee; a post office, a news agent; a dentist or a GP; children's entertainment; a venue to do a bit of sport, or listen to music.
We want to have a good experience, not only do the shopping.
But what are we getting instead? Petrol stations (inaccessible if you go by foot); travel exchange money shops; electronics shops; cardboard and plastics recycling (ok, this is handy but partially, as it is also inaccessible by foot); insurance salespeople; credit card salespeople; tons of alcohol piled up here and there.
And the list continues...
I think it is time supermarkets reinvent themselves. Fortunately the big four have become puzzled by what others are doing. So they need to look at themselves deep and hard.
I do not think they need to follow cost-based business models (like Aldi and Lidle's although they are also good at bringing nice products from the European continent).
Supermarkets need to turn your eyes to the communities around them.
And if they are going to use information technology, they should make it help us to have a pleasant and honest experience either online or offline.
