AN extraordinary week for the world of retailing. The Tesco story is grim and fascinating in equal measure. Here is the one of the world’s biggest retailers almost brought to its knees because of its obsession to be the biggest – at whatever cost. Put simply, Tesco is a bully. In order to maintain its position it has bullied suppliers, many of them small businesses, into accepting terms that made no business sense. There are inevitably many other factors, but across the retail sector the relationship between supplier and retailer is absolutely key. Both must have a shared vision of success.

Nonetheless, Tesco’s dominance is an inescapable fact. It employs over 300,000 people in the UK and accounts for almost £3.00 of every £10 spend on food.  How it reacts now to the pincer movement provided by Waitrose and M&S at one end, and the likes of Aldi and Lidl at the other will be provide a compelling story.

Elsewhere, Home Retail Group (HRG) have announced that they are to close 25% of their Homebase stores, citing the public’s lack of interest in DIY. Given that Homebase’s earnings grew 2% last year whilst Argos (also owned by HRG) grew 57%, you can partly understand the decision.

Not that B&Q are immune. A fascinating development in Ipswich is the current proposal to split the existing B&Q in half, and locate a Morrisons store in the other half. But, the latest news is that the local Council is likely to veto the move next week.

B&Q have also announced that they are to install wi-fi in all their stores by the end of next year. Good move or bad? With smart phones providing price-comparision apps you can imagine a shopper eyeing up a new kitchen, but then finding it cheaper at a clearance sale at the next door Homebase!

All of which is interesting, but how relevant is it to small independent retailers?

Back in the 1990s B&Q were Public Enemy No1 to all specialist retailers. A seminal moment came in 1992 when B&Q offered the first petrol lawnmower at under £100. It was a rubbish machine, but that didn’t matter, a benchmark price had been set. Nor was it a level playing field. The ‘sheds’ had massive budgets to splash on national press and TV, huge car parks and were open 7 days a week. Not only that, Flymo and Qualcast were slugging it out on TV which drove consumers into the big box stores. Small retailers could not compete on a level playing field.

As a response, a number of dealers decided to expand, open branches and consequently over-stretched their resources which resulted in a number of high-profile failures.

Today, all that has changed because of the internet. Specialist retailers often see their fellow dealers as the biggest competition. The bricks and mortar ‘sheds’ only tend to be a nuisance during the weeks of Easter and into Spring – after that their focus shifts to furniture and BBQs.

I suppose the lesson of all this is – stay in control and stay focussed.  The opportunities for specialist retailers today are immeasurably better than they were during those ‘shed’ dominated days.