Industry Analysis & Industry Trends
The performance of supermarkets is dependent on consumers' incomes and their willingness to spend. Many of the products they sell are considered non-discretionary – the kind of spending that consumers are unlikely to abandon unless faced with severe poverty. Given that large supermarkets can buy cheaply and sell at low margins, this means supermarkets can actually benefit from poor economic conditions like those that have been prevalent over much of the past five years.
Over the five years through 2014-15, industry operators have exploited the fact that often consumers wanted to minimise their spending and have taken revenue from independent convenience stores, department stores and specialised food retailers... purchase to read more
Industry Report - Industry Products Chapter
A wide variety of fresh foods, like fruit, vegetables, meat and delicatessen products, have been a mainstream part of the supermarket business for more than 20 years. There have been few substantive changes to the business model since then. The UK Supermarkets industry has more packaged fresh food (e.g. vacuum-packed vegetables) than many other developed countries, primarily because UK agriculture is relatively small-scale. For similar reasons, frozen food contributes a substantial slice of industry revenue. Packaged non-perishable foods like cereal and pasta generate about one-third of supermarkets' food revenue. Sales in this segment are expected to remain relatively constant over 2014-15... purchase to read more