Industry Analysis & Industry Trends
Companies operating in the Meat and Meat Product Retailing industry specialise in the sale of fresh and cooked meat. Businesses typically purchase produce from UK farms or suppliers. Over the past five years, operators have faced a challenging environment. Growing levels of external competition from supermarkets have hampered revenue growth, as supermarkets offer similar products at cheaper prices. However, scandals surrounding meat contaminated with horsemeat in supermarkets has supported revenue growth. Traces of horse DNA were found in beef burgers sold by several major supermarkets in 2013. This scandal continues to have a lasting influence on consumer preferences and attitudes towards the meat industry... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld determines the capital intensity of an industry by comparing capital costs with wage costs. The Meat and Meat Product Retailing industry has a moderate level of capital intensity. Wages are estimated to account for 12% of industry revenue in 2016-17, while depreciation costs, which can be used as a proxy for capital, are estimated to account for 1.3% of revenue. Therefore, for every £1.00 spent on capital, industry participants typically spend £6.34 on wages. The move towards e-commerce, which some operators have already adopted, is expected to add to capital expenses, increasing capital intensity over the next five years.
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