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 Key Buyers Chapter
Four major supermarkets dominate the industry: Tesco, Sainsbury's, Asda and Morrisons account for 67.2% of industry revenue. Of these, Tesco is by far the market leader, claiming a 26.7% market share. Over the five years through 2014-15, the top four players have lost market share to smaller supermarkets. The vast majority of the other 61 supermarket chains operating in the United Kingdom are small regional entities, but the 15 largest firms are estimated to control over 95% of industry revenue.
There have been several mergers and acquisitions in the past decade. Morrisons' purchase of Safeway was the most prominent, but the Co-operative Group has also been absorbing small players... purchase to read more