Sainsbury's targets farmers' markets

SAINSBURY'S is trying to cash in on the growing popularity of farmers' markets by introducing branches offering a wider range of fresh and specialist foods.

The stores are called Sainsbury's Markets and offer delicatessen goods, cheeses, meat, fish and breads, along with fresh take-away food.

Items are sold from traditional glass counters that have been moved to the front of the stores, where they form a U- shape so staff can move out to interact with customers.

The firm, locked in a battle for custom with fellow giants Tesco and Asda, is trying to tap into the increasing public affection for farm-fresh foods.

But farmers' groups, small indpendent stores and analysts insist the stores are an attempt to crush the competition. The Central London stores - in Pimlico and Chelsea - have triggered complaints from local independents that they are being driven out of business.

The Chelsea outlet opened earlier this year. Pimlico has a farmers' market on Saturdays, but many small food stores claim to have lost trade since the Sainsbury's Market opened last month.

They say one reason for the boom in farmers' markets is that producers are paid such poor prices paid by big food retailers. The markets' selling point is direct contact with consumers and letting farmers keep a bigger share of what shoppers pay.

Sue Thomson, of the National Association of Farmers' Markets, said: 'Sainsbury's has seen something that is popular and is trying to jump on the bandwagon. Its operation is not the same as a farmers' market, which puts producers in touch with consumers. People increasingly want to know where their food comes from - and how it is produced.'

Tim Lang, Professor of Food Policy at City University in London, said the market format was 'interesting' but part of a larger move by the major stores to grab custom from small businesses.

He added: 'It is a classic story of desperate supermarkets crushing small entrepreneurs and shops by trying to expand their market share by creating upmarket niches.'

He urged consumers to look beyond the market stall trappings, saying: 'In reality this doesn't really look or even feel like a real market. This is not the real thing, there is no evidence of any real craft on the site. This is just a supermarket with a different fascia.'

Mark Handley, of London Farmers' Markets, said of the Sainsbury's stores: 'I suppose imitation is the sincerest form of flattery. But they are not guaranteeing farmers any better payments, not guaranteeing customers that products are different from any other store. Apart from new paintwork, new flooring and new lighting, this is just like any other store.

'We have recently had the British apple harvest. But when I visited the Pimlico store it was selling Gala apples from New Zealand, when they grow in abundance in this country.'

But Sainsbury's Diana Hunter, who develops store formats, insisted real markets, specialist food shops and delicatessens could survive alongside the new stores.

She rejected claims that the company was driving small rivals out of business, saying: 'We can operate alongside farmers' markets and delicatessens to give shoppers a choice.'