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Supermarkets in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Supermarkets Market Research Report | SIC G47.110 | Mar 2017

Produce profit: Discount and premium supermarkets have hurt mid-market operators' profit

The Supermarkets market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

Report Snapshot
Market Share of Companies
Aldi Stores Ltd Aldi Stores Ltd market share
Asda Asda market share
Sainsbury's Sainsbury's market share
Tesco Tesco market share
WM Morrisons Supermarkets plc WM Morrisons Supermarkets plc market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • The rise of discount supermarkets has weakened the grip of the Big Four players
  • Many players have brought down their costs by asserting greater control over the supply chain
  • Supermarkets are moving into the convenience market by opening up more small-format outlets
  • ... purchase to read more

Industry Analysis & Industry Trends

The Supermarkets industry has undergone radical change over the past five years. The lingering effects of the economic downturn, extensive changes in consumer shopping habits and the aggressive expansion of the discount supermarkets Aldi and Lidl have shaken up the industry considerably. In March 2014, Tesco and Morrisons sparked a price war by announcing large price cuts on numerous items. Asda and Sainsbury's followed suit, announcing similar cuts to prices over the rest of the year. This price war was primarily designed to stall the advance of discount supermarkets, which have benefited from rising market shares in recent years... purchase to read more

Industry Report - Industry Investment Chapter

The Supermarkets industry has a moderate level of capital intensity. Using wages as a proxy for labour and depreciation costs for capital, IBISWorld estimates that for every £1.00 spent on labour, industry operators spend 21p on capital. Even though wages absorb a relatively small amount of total revenue, capital is not a major expense either, since there is little need for equipment beyond some lifting equipment and in-store checkout equipment.

Wages in the industry are low primarily due to the low skill requirements of its staff. Most employees operate checkouts, provide customer service or restock shelves. Ave.. purchase to read more

Additional Insights for the Supermarkets Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets Industry are

  • Ability to control stock on hand
  • Attractive product presentation
  • Availability of car parking
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Demand from department stores in the Supermarkets industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Supermarkets Industry?

    Supermarkets sell a range of groceries and food, including fruit, vegetables, bread, canned goods, toiletries, dairy goods, alcohol, cleaning products and cigarettes. Off licences, greengrocers and symbol group and non-affiliated independent convenience stores are not included in this industry.

    Industry Products
    Meat, fish and delicatessen itemsFruit and vegetablesDairy productsBeverages Frozen foodOther foodGeneral merchandise
    Industry Activities
    Grocery retailingFruit and vegetable retailingBakery product retailingDelicatessen product retailingGeneral merchandise retailing

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Demand from department stores
  • Demand from e-commerce and online auctions
  • Population
  • Current Performance
  • The retail landscape
  • Squeezing the middle
  • Discount options
  • The EU referendum
  • The online market
  • External competition stacks up
  • Supply chains and slotting fees
  • Chart: Revenue Growth
  • Industry Outlook
  • A wider selection
  • Consumer habits
  • Technological advances
  • Table: Supermarkets Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Confectionery Wholesaling
  • Fruit & Vegetable Wholesaling
  • Meat Product Manufacturing
  • Meat Wholesaling
  • Potato Crisps & Snacks Production
  • Products & Services
  • Beverages
  • Meat, fish and delicatessen items
  • General merchandise
  • Other food
  • Frozen food
  • Fruit and vegetables
  • Dairy products
  • Chart: Supermarkets Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Top income quintile
  • Second income quintile
  • Third income quintile
  • Fourth income quintile
  • Bottom income quintile
  • Chart: Major Market Segmentation for the Supermarkets Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Marketing
  • Rent, utilities, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Supermarkets Industry
  • Industry Globalization
    Major Companies
    Tesco plc
    Sainsbury's Supermarkets Ltd
    Asda Stores Limited
    Wm Morrison Supermarkets plc
    Aldi Stores Ltd
  • Table: Tesco plc - financial performance
  • Table: Sainsbury's Supermarkets Ltd - financial performance
  • Table: Asda Stores Limited - financial performance
  • Table: Wm Morrison Supermarkets plc - financial performance
  • Table: Aldi Stores Ltd - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Supermarkets Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Multichannel Retailing
  • Allowing customers to purchase goods using several different channels. These can include the internet, mobile phones and physical stores.
  • Radio Frequency Identification (Rfid)
  • A chip incorporated in product packaging so that products can be identified and tracked throughout the supply chain.
  • Slotting Fee
  • The fee supermarkets charge manufacturers to put their products on shelves in stores.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Supermarkets:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Supermarkets market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Supermarkets, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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