Table of Contents
Issues in the Market
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- Main themes
- Sector definitions
- Financial definitions
- Abbreviations
Insights and Opportunities
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- Ethical/organic
- Recession
- Internet
- Trust
Market in Brief
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- Economic uncertainty
- Economic background
- A safe haven in tough times
- Discounters gaining from trading down
- Tesco vs the rest
- Superstore dominance
- Sector size
- Forecast
Fast Forward Trends
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- Play Ethic
- What's it about?
- What we've seen
- What next?
- Instant Gratification
- What's it about?
- What we've seen
- What next?
Internal Market Environment
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- Key points
- Inflation
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- Figure 1: Inflation: All items and food and drink, 1988-2008
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- Figure 2: UK: Inflation, food and all items, 2007-08
- Competition
- The Media campaign
- The Competition Commission Inquiry
- Store formats – C-stores
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- Figure 3: UK: C-stores of the leading food retailers, 2008
- Store formats – hypermarkets
- Green issues
- Growing online sales
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- Figure 4: UK online food retailing sales, 2007
- 2008
Broader Market Environment
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- Key points
- Ageing population a major long term problem
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- Figure 5: UK population forecasts, by age group, 2003-13
- The economy
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- Figure 6: UK GDP growth, 1989-2008
- Consumers being squeezed
- Retail sales
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- Figure 7: UK: Year on year retail sales value growth, Jan 2008-Sept 2008
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- Figure 8: UK: Year on year retail sales volume growth, Jan 2008-Sept 2008
- Consumer confidence
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- Figure 9: UK: Nationwide Consumer Confidence Index, Jan 2005-Sept 2008
The Market in Context
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- Key points
- Food retailers – Key markets
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- Figure 10: UK: Consumer spending on selected major goods categories, 2003-07
- Food – by far the most important sector
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- Figure 11: UK: Spending on food as % all consumer spending, 2003-07
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- Figure 12: Food – estimated channels of distribution, 2007
- Alcohol and tobacco
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- Figure 13: Alcohol and tobacco – Estimated channels of distribution, 2007
- Non-foods
- Product mix
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- Figure 14: UK: Food retailers, estimated product mix, 2007
- Fuel and other non-retail items
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- Figure 15: UK Fuel sales of the major food retailers, 2007
- Food in context – Eating out
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- Figure 16: Spending on food relative to spending on eating out, 2003-07
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Tesco’s old age friendly store
- Sainsbury’s takes Tu into Homewares
- Consumer friendly technology
- Organic appeal?
- Green matters
- A finger in every pie
Sector Size and Forecast
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- Key points
- The future
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- Figure 17: UK: Food retailers’ sales, 2003-13
- Winners and losers
- The past
The Consumer – Where They Shop for Groceries
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- Key points
- Note on Research
- Timing of the Research
- Supermarkets used
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- Figure 18: Supermarket usage, July 2008
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- Figure 19: Profile of supermarket users, by age and socio-economic group, July 2008
- Winners and losers
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- Figure 20: UK: Food retailer usage changes, July 2008
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- Figure 21: UK: Where shoppers who have used stores less have migrated to, July 2008
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- Figure 22: Net change in customers, July 2008
- Profile of retailers by customer loyalty
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- Figure 23: Profile of shoppers whose usage is unchanged, July 2008
- Profile of customers using supermarkets more
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- Figure 24: Profile of shoppers whose usage has increased, July 2008
- Hard discounters
- Profile of customers using supermarkets less
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- Figure 25: Profile of shoppers whose usage has declined, July 2008
- Who is suffering
Factors Influencing Where People Shop for Groceries
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- Key points
- Key factors
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- Figure 26: UK: Key preferences in grocery shopping – summary findings, July 2008
- The environment
Consumer Attitudes towards Grocery Shopping
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- Segmenting consumers by attitudes to grocery shopping
- Methodology
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- Figure 27: UK shoppers, by attitudinal group, July 2008
- How have shopping habits changed in the last 12 months?
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- Figure 28: Changes in UK grocery shopping habits over the last 12 months, July 2008
- Online – small but growing rapidly
- Families switch to own label
- Value lines – selective shopping
- Premium lines
- The squeeze begins to bite
- But – have the supermarkets done anything to help?
- Objections to online
- Loyalty cards
- Postscript – celebrities
Brand Elements
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- Brand map
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- Figure 29: Attitudes and usage of food retailer brands, September 2008
- Tesco
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 30: Attitudes towards the Tesco brand, September 2008
- Sainsbury’s
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 31: Attitudes towards the Sainsbury’s brand, September 2008
- Asda
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 32: Attitudes towards the Asda brand, September 2008
- Morrisons
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 33: Attitudes towards the Morrisons brand, September 2008
- The Co-operative Movement
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 34: Attitudes towards the Co-op brand, September 2008
- Aldi
- What the brand is trying to achieve
- What the consumer thinks
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- Figure 35: Attitudes towards the Aldi brand, September 2008
- Brand qualities of food retailers
- Tesco dominates, Asda and Sainsbury strong runners up; M&S a powerful niche player
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- Figure 36: Personalities of various food retailing brands, September 2008
- Experience of food retail brands
- Tesco dominant, M&S is the strongest for occasional visits
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- Figure 37: Consumer usage of various food retail brands, September 2008
- Brand intentions for food retail brands
- Tesco has nowhere left to go, Waitrose excites most interest
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- Figure 38: Consumer usage of various food retail brands, September 2008
- Brand momentum for food retail brands
- M&S losing ground
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- Figure 39: Momentum of various food retail brands, September 2008
- Brand motivation for food retail brands
- M&S ranks highest for its café
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- Figure 40: Motivation for choosing various food retail brands, September 2008
- Brand satisfaction for food retail brands
- M&S and Waitrose the most satisfying
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- Figure 41: Satisfaction with various food retail brands, September 2008
- Brand commitment to food retailer brands
- Tesco and Asda have the strongest core of loyal shoppers
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- Figure 42: Commitment to various food retail brands, September 2008
- Round up
Retail Competitor Analysis
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- Key points
- Leading retailers
- Tesco, the largest and still gaining
- Winners and losers
- Hard discounters
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- Figure 43: UK: Leading food retailers, 2007/08
- Evaluation
- Market shares
- Pitfalls
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- Figure 44: Leading UK food retailers, estimated non-retail share of sales, 2007
- Market leaders
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- Figure 45: Leading UK food retailers, market shares, 2007
Aldi (Europe)
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- Figure 46: Aldi (Europe): Sales as share of all food retailers' sales in Europe, 2003-07
- Figure 47: Aldi (Germany): Sales as share of all food retailers' sales in Germany, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 48: Aldi (Europe): Estimated group sales performance, 2003-07
- Store portfolio
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- Figure 49: Aldi (Europe): Outlet data, 2003-07
- Retail offering
- Market positioning
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Asda Stores
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- Figure 50: Asda Stores Ltd: Sales as share of all food retailers in UK, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 51: Asda Group: Financial performance, 2003-07
- Store portfolio
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- Figure 52: Asda Group: Outlet data, 2004-08
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- Figure 53: Asda Group: Outlet numbers by store type, 2005-08
- Retail offering
- Market positioning
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Co-operative Group (Food)
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- Figure 54: Co-operative Group (Food): Sales as share of all food retailers’ sales in UK, 2003-07
- Figure 55: Somerfield: Sales as share of all food retailers’ sales in UK, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 56: Co-operative Group (food): Financial performance, 2003/04-2007/08
- Somerfield
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- Figure 57: Somerfield: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 58: Co-operative Group: Outlet data, 2004-08
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- Figure 59: Somerfield: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
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- Figure 60: Co-operative Group: Own brands, 2008
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Iceland Foods
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- Figure 61: Iceland Foods Ltd: Sales as share of all food retailers in UK, 2003-07
- History
- Financial performance
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- Figure 62: Iceland Foods: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 63: Iceland Foods Ltd: Outlet data, 2003/04-2007/08
- Retail offering
- Market positioning
- Brands
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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J Sainsbury
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- Figure 64: Sainsbury’s Supermarkets: Sales as share of all food retailers in the UK, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 65: J Sainsbury: Group financial performance, 2003/04-2007/08
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- Figure 66: Sainsbury’s Supermarkets, 2003/04-2007/08
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- Figure 67: Sainsbury’s Supermarkets: Sales growth, 2004/05-2007/08
- Store portfolio
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- Figure 68: Sainsbury’s Supermarkets: Outlet data, 2004-08
- Figure 69: Sainsbury’s Supermarkets: Outlets by size, 2004-08
- Retail offering
- Market positioning
- Brands
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- Figure 70: Sainsbury’s Supermarkets: Own brand portfolio
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Marks & Spencer (food)
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- Figure 71: Marks & Spencer (food): Sales as share of all food retailers in UK, 2003-07
- Recent history
- Financial performance
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- Figure 72: Marks & Spencer (food): Like-for-like sales performance, 2007/08-2008/09
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- Figure 73: Marks & Spencer (food): Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 74: Marks & Spencer (food): Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Wm Morrison Supermarkets
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- Figure 75: Wm Morrison group: Sales as share of all food retailers' sales in UK, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 76: Wm Morrison group: Financial performance, 2004/05-2007/08
- Store portfolio
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- Figure 77: Wm Morrison Supermarkets: Outlet data, 2004-08
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- Figure 78: Wm Morrison Supermarkets: Store portfolio by size, 2003, 2007 and 2008
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Musgrave
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- Figure 79: Musgrave (Ireland): Sales as share of all food retailers’ sales in Ireland, 2003-07
- Figure 80: Musgrave (UK): sales as share of all food retailers’ sales in the UK, 2003-07
- Recent history
- Financial performance
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- Figure 81: Musgrave: Group financial performance, 2003-07
- Figure 82: Musgrave: Estimated retail sales by market, 2003-07
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- Figure 83: Musgrave: Percentage of retail sales by brand, 2007
- Store portfolio
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- Figure 84: Musgrave: Main formats outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
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- Figure 85: Musgrave: Breakdown of brand lines, 2008
- Product offer
- Operational issues
- e-commerce and home shopping
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Ocado
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- Figure 86: Ocado Ltd: Sales as share of all food retailers in UK, 2003-07
- History
- Financial performance
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- Figure 87: Ocado Ltd: Group financial performance, 2003-07
- Retail offering
- Operational issues
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Schwarz Group
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- Figure 88: Schwarz Group: Estimated sales as share of all food retailers’ sales in Europe, 2003-07
- Figure 89: Schwarz Group: Estimated sales as share of all food retailers’ sales in Germany, 2003-07
- Figure 90: Schwarz Group: Estimated sales as share of all food retailers’ sales in France, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 91: Schwarz Group: Estimated group sales, 2003/04-2007/08
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- Figure 92: Schwarz Group: German operations’ share of group sales, by fascia, 2003/04-2007/08
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- Figure 93: Schwarz Group: Estimated share in group international sales by market, 2007/08
- Store portfolio
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- Figure 94: Schwarz Group: Store portfolio, Germany vs international, 2003/04-2007/08
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- Figure 95: Schwarz Group: Store formats, 2008
- Recent developments
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- Figure 96: Schwarz Group: Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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SPAR International
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- Figure 97: SPAR (Europe): Sales as share of all European food retailers’ sales, 2003-07
- Strategic evaluation
- History
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- Figure 98: SPAR International: Year of entry by country
- Financial performance
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- Figure 99: SPAR International: Retail sales by country, 2003-07
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- Figure 100: SPAR International: Estimated European sales exclusive of sales tax, 2007
- European operations
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- Figure 101: SPAR (Austria): Sales as share of Austrian food retailers’ sales, 2003-07
- Figure 102: SPAR (Belgium): Sales as share of all Belgian food retailers’ sales, 2003-07
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- Figure 103: SPAR (Croatia): Sales as share of all Croatian food retailers’ sales, 2005-07
- Figure 104: SPAR (Czech Republic): Sales as share of all Czech food retailers’ sales, 2003-07
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- Figure 105: SPAR (Denmark): Sales as share of all Danish food retailers’ sales, 2003-07
- Figure 106: SPAR (France): Sales as share of all French food retailers’ sales, 2003-07
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- Figure 107: SPAR (Germany): Sales as share of all German food retailers’ sales, 2003-07
- Figure 108: SPAR (Greece): Sales as share of all Greek food retailers’ sales, 2003-07
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- Figure 109: SPAR (Hungary): Sales as share of all Hungarian food retailers’ sales, 2003-07
- Figure 110: SPAR (Ireland): Sales as share of all Irish food retailers’ sales, 2003-07
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- Figure 111: SPAR (Italy): Sales as share of all Italian food retailers’ sales, 2003-07
- Figure 112: SPAR (Netherlands): Sales as share of all Dutch food retailers’ sales, 2003-07
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- Figure 113: SPAR (Norway): Sales as share of all Norwegian food retailers’ sales, 2003-07
- Figure 114: SPAR (Poland): Sales as share of all Polish food retailers’ sales, 2003-07
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- Figure 115: SPAR (Russia): Sales as share of all Russian food retailers’ sales, 2003-07
- Figure 116: SPAR (Slovenia): Sales as share of all Slovenian food retailers’ sales, 2003-07
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- Figure 117: SPAR (Spain): Sales as share of all Spanish food retailers’ sales, 2003-07
- Figure 118: SPAR (Switzerland): Sales as share of all Swiss food retailers’ sales, 2003-07
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- Figure 119: SPAR (UK): Sales as share of all UK food retailers’ sales, 2003-07
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- Figure 120: SPAR International: Sales and outlets by country outside Europe, 2001 and 2006-07
- Store portfolio
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- Figure 121: SPAR International: Outlet data, 2003-07
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- Figure 122: SPAR International: Sales per m² by country (Europe), 2007
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- Figure 123: SPAR International: Store formats, 2008
- Retail offering
- Market positioning
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Tesco
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- Figure 124: Tesco (Europe): Sales as share of all food retailers in Europe, 2003-07
- Strategic evaluation
- History
- Financial performance
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- Figure 125: Tesco Plc: Group financial performance, 2003/04-2007/08
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- Figure 126: Tesco (UK): Sales as share of all food retailers in UK, 2003-07
- Figure 127: Tesco (Czech Rep): Sales as share of all food retailers in Czech Republic, 2003-07
- Figure 128: Tesco (Hungary): Sales as share of all food retailers in Hungary, 2003-07
- Figure 129: Tesco (Ireland): Sales as share of all food retailers in Ireland, 2003-07
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- Figure 130: Tesco (Poland): Sales as share of all food retailers in Poland, 2003-07
- Figure 131: Tesco (Slovak Rep): Sales as share of all food retailers in Slovak Republic, 2003-07
- Store portfolio
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- Figure 132: Tesco Plc: Outlet data, 2003/04-2007/08
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- Figure 133: Tesco: UK store formats, 2007/08
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- Figure 134: Tesco: European store formats, 2007/08
- Figure 135: Tesco: Asian store formats, 2007/08
- Retail offering
- Market positioning
- Brands
- Product offer
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- Figure 136: Tesco UK: Sales by product, 2006/07 and 2007/08
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Waitrose
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- Figure 137: Waitrose Ltd: Sales as share of all food retailers in UK, 2003-07
- History
- Financial performance
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- Figure 138: Waitrose Ltd: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 139: Waitrose Ltd: Outlet data, 2003/04-2007/08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Retail Advertising and Promotion
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- Key points
- Trends in total spending on advertising
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- Figure 140: Main media advertsising: Leading supermarkets, 2004-08 (H1)
- Figure 141: Total advertising spending, 2004-08 (H1)
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- Figure 142: UK: Spending on advertising as % total sales, 2007
- Advertising media
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- Figure 143: Leading retailers’ advertising spend, by medium, 2007
- Figure 144: Leading retailers’ advertising split by media, 2007
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- Figure 145: UK: Total supermarket spend on advertising, by media, 2004-08 (H1)
Appendix: Where They Shop For Groceries
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- Figure 146: Regular shoppers, by demographic, July 2008
- Figure 147: How regular shoppers have changed their shopping habits in the last year, July 2008
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- Figure 148: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
- Figure 149: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
- Figure 150: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
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- Figure 151: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
- Figure 152: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
- Figure 153: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
- Figure 154: Demographics for how the frequency of shopping at each outlet has changed in the past 12 months, July 2008
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Appendix: Factors Influencing Where People Shop for Groceries
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- Consumer preferences: Detail demographics
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- Figure 155: Key preferences for grocery shopping, by detailed demographics, July 2008
Appendix: Consumer Attitudes towards Grocery Shopping
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- Figure 156: Shopping habits of attitudinal groups, July 2008
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- Figure 157: How the habits of the attitudinal groups have changed in the last year, July 2008
- Consumer attitudes: Detailed demographics
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- Figure 158: Attitudinal statements, by gender and age, July 2008
- Figure 159: Attitudinal statements, by socio-economic group and income, July 2008
- Demographics of the attitudinal groups
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- Figure 160: Attitudinal groups, by detailed demographics, July 2008
- How attitudinal groups have changed their supermarket behaviour over the last 12 months
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- Figure 161: Detail shopping habit changes of attitudinal groups, July 2008
- Proportion of attitudinal groups who are regular shoppers of each outlet
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- Figure 162: Attitudinal groups, by regular shopping locations, 2008
- Proportion of regular shoppers of each outlet who belong to each attitudinal group
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- Figure 163: Proportion of regular shoppers of each outlet who belong to each attitudinal group, July 2008
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