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Published: 15 July 2010
by JOSH LOEB

WHETHER it’s habitats wrecked by intensive farming, food producers paid a meagre price or the scandal of excess packaging, the practices of supermarket giants regularly fill newspaper column inches, plaguing consumers with guilt. 

But most of us, tempted by low prices, continue handing over our money to the chains when we go shopping.

Now there’s an alternative. As of last month, Lamb’s Conduit Street in Holborn has been home to a pilot project that aims to make the weekly shop a less guilt-ridden experience.

The People’s Supermarket, a co-operative, not-for-profit company, claims to match or almost match the prices in high street chains on certain products.

Where possible, it sources food direct from producers located close to the shop, reducing the distance food must travel and thereby cutting pollution. Crucially, it invites local people to get involved in the running of the shop – indeed, to become shareholders. 

If successful, the model may be copied elsewhere.

“The idea came from New York,” says Kate Bull, a former retail consultant who co-founded the supermarket with TV chef and restaurateur Arthur Potts Dawson. 

“They have something called the Brooklyn Park Slope Co-operative, which has been running since 1974. It has in the region of 12,000 members and turns over £32million dollars a year. It was set up by a group of people who felt they couldn’t get cheap, good food in their area – food at a price that is fair for growers as well as producers.”

The membership concept is integral to the running of the People’s Supermarket. Anyone can shop there, but members – who pay a £25 yearly fee – are entitled to a 10 per cent discount. They must volunteer to work a minimum of four hours a month in the shop and are invited to attend meetings and vote on aspects of its policy. 

“Membership is currently sitting at 230,” says Kate. “If we can get 400 that will give us enough cover for every shift in the store. We need to have someone from 7.30 in morning to 10 at night in order to be able to open from 8am-8pm.”

The business model works, says member David Barrie, because there is no return to the shareholder other than the 10 per cent discount and all profits go towards further slashing prices. 

“We have exceptionally low overheads,” he says. “Basically we’re exchanging time for discounts. Probably 75 per cent of the shop is stuff that has been recycled.”

The highest costs for most supermarkets are their employees and head office, explains Kate. “They also spend a huge amount on advertising. We have no head office and we only have a few paid managers to comply with legal requirements. The Esmee Fairbarn Foundation gave us prior funding for two years for a general manager. We have also had support from Camden Council and our landlord is behind what we are doing.” 

The business cost around £200,000 to set up – money which came from grants and foundations. It has also received around £293,000 worth of goods and services paid “in kind”.

However, the supermarket does not have the backing of a commercial bank as it is seen as “too risky”. 

Environmentally friendly, community-led and commercially sustainable, the People’s Supermarket is “at the forefront of what the coalition is calling the Big Society”, says Kate. However, it has received no government support.

“We’re not stuck on organic because that has various mixed messages,” says Kate. “We stock seasonal British produce as a priority, then seasonal European. For food not grown in Europe such as bananas, we will stock the fair trade variety. For produce from mainland Europe we have to go to wholesale markets, but food is bought according to our guidelines. 

“We’ve tried to make it feel like a mainstream shop – not too righteous. It’s about looking at the whole of what you do, not just being inward looking and saying we want to maximise profit.”

• The People’s Supermarket is at 72-78 Lamb’s Conduit Street, WC1. It is looking for members, particularly anyone who would be able to undertake plumb­ing and building jobs in the store as part of their four hours of voluntary work per month. The supermarket is currently advertising two paid roles: General Store Manager and People’s Manager. To apply, drop into the store and ask for Kate Bull or send a CV to the shop saying which role you are applying for