Industry Analysis & Industry Trends
Supermarkets' performance is reliant on consumers' incomes and their willingness to spend. The industry has reached a level of ubiquity that very nearly sets it aside from ordinary economic fluctuations. With expected revenue of £132.3 billion in 2012-13, supermarkets represent a sufficiently large enough share of national retail spending to be nearly immune to the effects of a recession. Most products sold by supermarkets are considered non-discretionary: the kind of spending that consumers are unlikely to abandon unless faced with severe poverty. Combined with the ability of large supermarkets to buy cheaply and sell at low margins, this means that supermarkets can actually benefit from poor economic conditions like those occurring over the past five years... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Although supermarket numbers in the United Kingdom are expected to grow by more than 2.0% per annum over the 10 years through 2016-17, the number of companies operating supermarkets is expected to decline by just under 0.5% per annum. The ongoing consolidation occurring in the industry 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, while being relatively new in the United Kingdom, has been well established in Europe for some time. Consolidation in the industry is increasing. Safeway's sale to Morrisons in 2008 is an example of the failure of a major supermarket chain resulting in it being co-opted by a competitor... purchase to read more