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 consumers have 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 Analysis Chapter
The recession that struck the United Kingdom during 2008 had profound implications for the way consumers spent money. Although shoppers dealt a blow to most retail industries by cutting back their discretionary spending, supermarkets' revenue grew throughout the downturn in every year except for one. Consumer spending dropped in 2008 and 2009 but, apart from 2009-10, supermarkets managed to escape many of the problems that challenged other retailers.
Over the five years through 2014-15, industry revenue is expected to grow at a compound annual rate of 2.5% to £164.1 billion. The sudden shift in consumer behaviour brought on by the recession simply accelerated trends already underway in the industry... purchase to read more