Suggestions from people who simply do not understand

There is this thing in economics called “economies of scale”. If you do things on a larger scale then it might be possible to have lower unit costs for each of the things done. It’s not a certainty, thus the “might” there. But retailing is one of those things where we do see it.

Cheap stuff is sold in high volumes from sheds on the edge of town. Small quantities in the centre of town are more expensive. That’s just the way the economics work out.

At which point we get this:

Sue Davies, the head of food policy at Which?, urged Rishi Sunak to ask grocery bosses gathering at No 10 on Tuesday to commit to doing more to hold prices down, “including stocking budget lines in convenience stores to ensure easy access to basic, affordable food ranges that support a healthy diet”.

Convenience stores are those small places in the centre of town. Where the volume of sales is small and upon a higher overhead and cost base. Therefore retailers do not sell budget items in them because the margins aren’t enough to contribute sufficiently to the costs of having the convenience store.

This is not something to be overcome by asking eveyone to be nice.

But apparently we’re to solve the problem - if we’ve even got a problem, for we might usefully suggest that those who are budget constrained go to the sheds - by so asking. Which isn’t going to work when facing the basic economics here, is it?

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