Where a moral minority goes shopping

Grainy black-and-white reprints of shoppers queuing for their Co-op 'divi' made a risible case last week for the notion that this organisation is back in fashion and about to take food retailing by storm.

Yes, the Co-op once enjoyed Tesco-style dominance over food retailing, but that was before Sir Terry Leahy was even a twinkle in his parents' eyes.

Since then, the march of the supermarkets has seemed unstoppable.

But Martin Beaumont, chief executive of the Co-op group, argues that consumers are now more socially aware. Yes, they want competitive prices, but they also look to patronise 'socially responsible' companies.

Beaumont has proved this at the Co-operative Bank, where more than a third of new customers sign up because they support its ethical investment policy. He also senses he can benefit from a backlash against the huge profits of his High Street rivals.

He clearly hopes to pull off a similar trick in the food retailing sector.

The contention that supermarkets are profiteering is hard to justify. Even Tesco makes only 3.5p after tax on every pound of turnover.

But when it unveils profits of £1.6 billion and boasts of accounting for £1 in every £8 spent nationwide, consumers may worry that the company is simply becoming too powerful. And as Tesco spreads its net with small, local stores, there are others who think it is time the competition authorities called a halt.

The Co-op, with a market share of about eight%, is focusing on convenience stores. After the abortive £500 million takeover bid by Andrew Reagan in 1997, it has modernised its systems and stores.

Musgrave - the Irish group that owns Budgens and, like Co-op, is believed to be weighing a bid for Londis - reckons the convenience offerings of Sainsbury's, Tesco et al are persuading shoppers to buy more than the odd loaf or limp lettuce.

Waitrose has shown that shoppers are prepared to pay more for quality and ambience. The Co-op hopes to woo the ethically minded to cough up for Fairtrade coffee. If customers buy into its philosophy, they are likely to be loyal - and harder for Asda, Morrisons or Tesco to lure with their two-for-thepriceof-one deals. been strong since last summer, when Musgrave agreed the price. Observers believe it is now likely to fetch closer to £50 million.

Musgrave may be the front-runner, but the Co-op with its mutual history could be attractive to the group's owners.

On the trail of Simon Allso

FINANCIAL Mail has been swamped with calls and emails after our report on controversial businessman Simon Allso, who has appealed against the Department of Trade & Industry's compulsory liquidation of some of his companies.

I am particularly grateful to those who pointed out that Allso and close associates Colin Parker and Robert Turner are now using several companies under the Buzwell Management umbrella to acquire other businesses. Buzwell, formed in July 2003, had an expansive website expounding its philosophy. The site has mysteriously disappeared, but we would like to hear from anyone who has had dealings with Buzwell or Allso's former vehicle, Rodencroft.

No disguising the depth of Shell's crisis

FIRST came selected extracts from the explosive report into the failings at Shell that effectively perpetuated a cover-up on the size of its oil and gas reserves. Now the management would have us believe that this lapse was down to oversights by key individuals.

Human error of quite astounding proportions clearly played a major role. But if Shell is so confident that this explains its latest aberration, why has it moved so quickly to separate the roles of chairman and chief executive and to restructure the reporting lines in its finance and legal functions?

That doesn't sound like a company confident that two or three scalps will stop the rot. And though the company's arcane executive structure did not offer obvious routes for whistleblowers, there are ways for executives fearful that they are being forced to lie to bring matters into the open.

A call to any of the regulatory bodies investigating the group, or a nod and a wink to the Press, could have set that ball rolling.