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 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