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 the past five years.
Over the five years through 2013-14, industry operators have exploited the fact that consumers wanted to minimise their spending and taken revenue from independent convenience stores, department stores and specialised food retailers... purchase to read more
Industry Report - Industry Locations Chapter
The geographic spread of revenue is more closely correlated to population than wealth, but there is a slight positive relationship between higher consumer income and increased spending in supermarkets. London, the nation's epicentre of all things retail and commercial, is the region that spends most on supermarket goods, contributing 15.4% of total revenue. This compares with 12.4% of national population and 21.1% of national GDP. A similar trend is apparent in the South East.
Indeed, regions of the United Kingdom that generate a higher share of industry revenue are those with the lowest per capita GDP. However, there are exceptions... purchase to read more