Industry Analysis & Industry Trends
The economic downturn has had a lasting effect on the Supermarkets industry in the United Kingdom. Given that large supermarkets can buy cheaply and sell at low margins, this means that in some cases supermarkets can actually benefit from poor economic conditions like those that have been prevalent over much of the past five years. This has been particularly evident for discount supermarkets. In March 2014 Tesco and Morrisons sparked a price war by announcing large price cuts, with Asda and Sainsbury's following suit over the past year and announcing similar cuts to prices. This is expected to have a negative influence on industry revenue growth. Consequently, revenue is expected to grow at its slowest rate since 2009-10... purchase to read more
Industry Report - Industry Key Buyers Chapter
The four major supermarkets that dominate the industry, which are Tesco, Sainsbury's, Asda and Morrisons, are expected to account for 65.4% of industry revenue in 2014-15. Of these, Tesco is by far the market leader, claiming a 25.7% market share. Over the five years through 2014-15, the top four players have lost market share to smaller supermarkets. The vast majority of the 61 supermarket chains operating in the United Kingdom are small regional entities, but the 15 largest firms are estimated to control over 87% of industry revenue.
There have been several mergers and acquisitions in the past decade. Morrisons' purchase of Safeway was the most prominent, but the Co-operative Group has also been absorbing small players... purchase to read more