Food retailing is by far the largest retail sector accounting for almost half of all retail sales. It is also the most concentrated in Europe, if not the world, with just four major players dominating the sector and taking the lion’s share of main supermarket shopping trips.
For this reason it is a focus for attention by the competition authorities and a constant target for small store action groups.
The success of the majors has come from being responsive to changing tastes and from expanding their product offers. In food they have expanded their ready prepared products and developed organic, premium, value and fair trade ranges. In non-food they have introduced clothing brands and other ranges including electricals, housewares, home entertainment, toys, stationery and services including finance and telecoms where they have the space to merchandise them with authority.
But the UK is at the beginning of a major downturn. The economy as a whole is expected to be in recession in the second half of the year having been flat in the second quarter and down in the third and that is likely to translate into a retail recession by early 2009. How should the grocers react, how will consumers react?
Main report themes:
Consumers have been trading up, seeking ever more aspirational goods. How should/will the grocers react if that trend reverses?
Concentration and competition in the aftermath of the Competition Commission report.
Are green and ethical issues important to consumers, or are they more of a stick for the media to beat the retailers with?
How important is the online offer and how much further can it go.
