UK Food & Grocery Retailers 2011

Oct. 17, 2011 - PRLog -- Introduction

Expenditure in food & grocery is expected to grow 3.2% in 2011, driven mainly by inflation. As consumers remain highly price sensitive and the market remains competitive, grocers have taken much of the impact of this inflation – with promotions becoming embedded in the market. Volume sales growth has slowed substantially, however grocers' expansion continues at the expense of sales densities

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Features and benefits
•   Provides data and insight on the market size, sales and growth rates for the UK food & grocery sector, overall and at category level
•   It presents thorough profiles of key players operating in the sector: including operating statistics and market share analysis
•   Analysis of the key issues impacting the sector – inflation, polarisation, space expansion, online, promotions & integrating new technologies
Highlights

Inflationary pressures and the impact on volumes have not halted grocers expansion plans. In fact, they plan to significantly increase space – opening almost twice the amount in the next five years as was opened between 2005 and 2010. As a result we expect sales densities at constant prices (excluding inflation) to decline from 2011 to 2015

Promotional activity is intensifying in the quest to win share, as a culture of promotions becomes embedded in the market. Multibuys and price focused comparisons will push retailers to the limit of price cutting potential, and become unsustainable. Gaining loyalty and creating more complex value propositions will be necessary to differentiate

Online sales for food continue to grow along with increased competition. Limited delivery slots and associated charges are the key concerns preventing usage of the online shopping channel – click & collect may provide the solution to both of these issues. The focus on click & collect in non-food should extend to food to address these concerns


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