Could a budget supermarket work in the island?

Throughout Jersey's election campaign, some politicians and candidates claimed budget supermarkets would be interested in operating in the island.

Political movement Value Jersey urged the next government to remove the "planning and regulatory barriers" it says are preventing cheaper supermarkets like Aldi and Lidl from setting up. "Find the land, cut the red tape" it has publicly said.

It has argued lower costs and increased competition from these retailers would help islanders cope with the cost of living crisis.

Critics have warned the economics and the logistics of a new supermarket in Jersey are not that simple.

Currently the supermarkets that have a presence in Jersey are Channel Islands Co-operative, Waitrose, Morrisons, M&S and Iceland.

Deputy Samantha Gleave, who has endorsed Value Jersey, said: "We know that Lidl and/or Aldi are in conversations with the island at the moment.

"We know that because that's already been announced by the economic sustainable minister - that was Kirsten Morel who's been also re-elected which is great."

Morel said he "believed" there had been budget supermarkets interested in Jersey but "it would be wrong to suggest any brand names".

He added supermarkets were private businesses talking to private landlords about potential sites, and these were not conversations the government had been involved in.

A statement from Lidl GB, which has been shared by Value Jersey, said: "We are always open to exploring new opportunities to bring our great value, high-quality products to more consumers.

"This includes Jersey, where we have noted recent interest. We will continue to review any potential sites that meet our requirements."

Aldi did not respond to a request for comment.

Value Jersey has argued the Lidl store in Orkney, which has been open since 2006, is evidence a budget supermarket could operate in Jersey.

It has pointed to the fact Orkney's population is roughly five times smaller than Jersey's as proof size is not a barrier.

Chief executive officer of the Channel Islands Coop Mark Cox called it a "crude" comparison.

He highlighted Orkney is about 10 miles (16km) from the Scottish mainland, whereas Jersey is roughly 85 miles (137km) from the UK.

He also explained Orkney's freight links are subsidised by the Scottish government.

Cox said: "The Channel Islands are an expensive place to do business and anybody that thinks that a budget supermarket could be here and offer the same price as in the UK, then I think that's slightly delusional.

"What we'd like to see is people talking about how can we support local businesses to bring down the cost of doing business, so we can bring down the cost of products for islanders. That's a more far more helpful debate."

Gleave acknowledged lower-cost supermarkets might be "slightly more expensive here" but emphasised the retailers' working models were about "undercutting existing suppliers".

"We're very confident that they would come here to deliver lower prices," she said.

Value Jersey candidates claimed planning regulations were a barrier for new operators, but former chair of the planning committee Philip Le Sueur said no supermarket from outside the island had submitted an application for a site in the past 12 years.

He called discussion about budget supermarkets on the island "populist", adding he didn't "see it as the panacea that's going to solve it [the cost-of-living crisis]".

Nick Trower, a commercial estate agent who has worked with a supermarket looking to operate in Jersey, said there were "numerous barriers", including planning policy, land availability, freight costs, licencing, staffing and the cost of building.

He said these barriers had been caused by government red tape.

"If there is anyone who can open up the doors to a cheaper supermarket relocating to the island, it would be the government themselves," he said.

Morel agreed the next government should remove barriers to business and encourage economic development via the new Island Plan.

He felt the idea of a discount supermarket in Jersey had been used as a "political tool" and not everyone agreed it would work.

Morel said: "I think there needs to be a lot more discussion, a lot more thought going into it, rather than just a conversation about cheap prices."

He said a new supermarket would only offer full benefit if it was European and utilised southern supply routes, which he argued would improve the island's resilience as well as offering greater choice.

He has previously revealed discussions between the government and a French supermarket have taken place.

The former minister added the need to support local food suppliers in the island "mustn't be lost in this conversation".

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