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 SWOT Analysis Chapter
The lack of new entrants, the widespread acceptance of the industry's products and the stagnant rate of technological change indicate the industry's mature life cycle phase. Although the number of supermarkets in the United Kingdom is expected to grow in the 10 years through 2019-20, very few companies are likely to enter the industry. This is a reflection of industry consolidation occurring over the five years through 2014-15 and is a clear indication of the industry's maturity.
Brand awareness is high nationwide, as most major supermarkets have existed for decades. One international competitor, Aldi, is relatively new in the United Kingdom, but well established in Europe. Consolidation in the industry is increasing... purchase to read more