Uk food

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Datamonitor’s “UK Food & Grocery Retailers 2011” is now available at ReportsnReports.com.

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Uk food

  1. 1. UK Food & Grocery Retailers 2011ReportsnReports.com adds Datamonitor’s “UK Food & Grocery Retailers 2011” to its store.IntroductionExpenditure in food & grocery is expected to grow 3.2% in 2011, driven mainly by inflation. Asconsumers remain highly price sensitive and the market remains competitive, grocers have taken muchof the impact of this inflation – with promotions becoming embedded in the market. Volume salesgrowth has slowed substantially, however grocers expansion continues at the expense of sales densitiesFeatures 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 technologiesHighlightsInflationary pressures and the impact on volumes have not halted grocers expansion plans. In fact, theyplan to significantly increase space – opening almost twice the amount in the next five years as wasopened between 2005 and 2010. As a result we expect sales densities at constant prices (excludinginflation) to decline from 2011 to 2015Promotional activity is intensifying in the quest to win share, as a culture of promotions becomesembedded in the market. Multibuys and price focused comparisons will push retailers to the limit ofprice cutting potential, and become unsustainable. Gaining loyalty and creating more complex valuepropositions will be necessary to differentiateOnline sales for food continue to grow along with increased competition. Limited delivery slots andassociated 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 shouldextend to food to address these concernsTable Of Contents
  2. 2. EXECUTIVE SUMMARYKey findingsMarket growth mainly driven by inflation as volumes suffer;Tough economic conditions result in market polarisation to value and premium ends;Growing space not always the answer…with scope for further market consolidation;Sales densities at risk;Tesco has most to lose from increased competition;Building customer loyalty will continue to be a focusOnline and delivery process remains a focus;Innovation in promotions vital to drive share;New technology will play a greater role in customer engagement.Main conclusions(Untitled sub-section)OUTLOOKSpace race continues as market conditions toughenInflation impacts volume growthImpact on volumesConsumer trendsPolarisation of demandFood & grocery retailers increasingly stretchedSpace race damages sales densitiesSpace expansion plans continue unabated despite difficult economic outlookLarge store expansion also continuesNew space starts to impact on real sales densitiesGrocers must manage expansion plans carefullyOnline shopping provides respite from space raceOnline growth continues ...but simply transfers sales from storesShopper numbers online grow, as do expectationsImproving delivery process will benefit food & grocery retailersPromotionsCulture of promotions embeds itself in retail environmentMultibuys becoming unsustainableMulti-buys extend across categories as meal deals become ubiquitousPrice focused comparison is a win/win for shoppersShopper focused innovation in promotions will win shareInnovation in promotions will be vitalIntegrating new technology to understand and engage with the consumerInvestment in new technology must be high on the agendaTesco leads in m-CommerceSocial media changes the way grocers engage with customers
  3. 3. Brand communities developNew technologies set to change retailer interaction with customersSummary – focus must be on retaining profitsGrowing space not always the answer …with scope for further market consolidationEfficient business management vitalBuilding customer loyalty will continue to be a focusMARKET ANALYSISGrowth improves, though volumes suffer for grocers and food specialistsGrocers continue to grow share, while off-licences and specialists lose outSmall stores see the highest growth rateSpace growth driven by supermarket expansion …though small stores increase productivityConsolidation sees multiples take on larger proportion of store numbersFood & grocery expenditureVolume growth slowsEssential nature of food makes it the key driverCOMPANY DATA ANALYSISMarket sharesSmaller players squeezed as winners continue to leverage operational efficienciesKey operating statisticsSales and operating profitSpaceSpace allocation – grocers retreat from non-food to focus on core offerAdvertisingGrocers up spend as fight for market share escalatesASDAIncreased focus on quality, while it looks to smaller stores for expansion opportunitiesRecent key eventsConveying quality key to growthPropositionFinancialsSales growth slows downPrice positioning drives footfall and salesSpaceNetto stores will boost numbers significantlySpace allocationSales mixSector performance – food & grocerySales pick up but 2011 will remain toughMarket shares
  4. 4. Netto purchase gives boostOutlookImproving and not just expanding offer will prove challengingTHE CO-OPERATIVE GROUPSettling down after Somerfield acquisitionRecent key eventsEthical trend sets agendaPropositionFinancialsSales growth levels as Somerfield integration continuesGrowth settles to comfortable levelSpaceAmbitious expansion plans aheadSales densities dip in 2011Space allocationSector performance – food & groceryFood and grocery sales settle as integration nears completionMarket sharesSteady after leap in 2009OutlookFuture expansion must be tacticalICELANDSigns of slowdown in recoveryRecent key eventsDespite questions over future ownership, Iceland expandsPropositionFinancialsMargins remain high as growth begins to slowSlowdown in sales growth highlights trading pressuresSpaceSteady growth with usual formatSpace allocationSector performance – food & groceryFood and grocery sales continue to growMarket sharesMarket share continues to grow at slow paceOutlookIncreasing pressure will test Malcolm Walkers determinationMARKS & SPENCEREvolution not revolution for premium grocer
  5. 5. Recent key eventsBolland pursues evolutionary changePropositionFinancialsHealthy growth as promotions drive salesSpaceSteady rise in floorspaceSpace allocationSector performance – food & groceryFood & grocery sales rise 19.0% in five years to 2011Market sharesSteady as Waitrose diversifiesOutlookGradualist long term approach but consumer climate to get harderMORRISONSMorrisons moves to catch up with rivalsRecent key eventsMorrisons begins catch up in order to win sharePropositionFinancialsTrading performance defies recessionFair growth in both sales and profitSpaceSustains space growth despite recessionSpace allocationSales mixSector performance – food & groceryFurther growth in sector salesMarket sharesSteady as Morrisons plans to expandOutlookExpansion required to increase market shareOCADOSales growth limited by capacity constraintsRecent key eventsExtending range and capacity to reach new customersPropositionCarrefour link adds interest to rangeFinancialsSales growth continues as profits start to emergeCapacity constraints limit sales growth
  6. 6. Profits begin to emerge as sales make their markSector performance – food & groceryGains basket size while others are losingMarket sharesOutlookNew distribution centre will alleviate pressure in capacitySAINSBURYSRebranding to offer customers affordable indulgenceRecent key eventsInnovates in value while maintaining valuesPropositionAdded value widens propositionFinancialsExpansion feeds salesSteady increase in margins as sales continue to growSpaceAmbitious expansion continues with new locations providing solid growthSpace allocation – fresh focus emergesSales mixSector performance – food & groceryQuality and value builds food spendMarket sharesSpace drives share growthOutlookRepositioning brand as expansion continuesTESCOLooks to new ranges and Express store rollout for food & grocery sales growthRecent key eventsTries to differentiate as competition intensifiesPropositionFinancialsNew space drives sales growthNon-stop sales and profit growthSpaceSustains space growth despite recessionSpace allocationSales mixSector performance – food & groceryGrowth picks up after slowing in 2009Market sharesConvenience store rollout generates small rise in share
  7. 7. OutlookOrganic growth remains tough, but Tesco expands ranges and rolls out even more storesWAITROSEFlexes formats as reach extendsRecent key eventsNew stores and renewed online services spur growthPropositionAdapting to polarisation to premium and value ends of the market lets customers indulge or saveFinancialsBuilding on sales growth through ongoing expansionBuilding profits steadily as expansion restrains growth ratesSlight fall in operating margin as expansion pressurises profitabilitySpaceConvenience and new territory adds spaceSpace allocationSales mixSector performance – food & groceryGrowth gathers pace as offer hits the right noteMarket sharesBalance of affordable indulgence wins shareOutlookAmbitious plans will provide potential to build on growthHARD DISCOUNTERSAldiAldis profitability under threat as Big Four step up competitivenessTrading recordStore portfolioMarket sharesOutlookLidlValue credentials should prove popular as economic recovery faltersTrading recordStore portfolioMarket sharesOutlookSMALLER GROCERY PLAYERSBoothsNiche upmarket appeal provides continued growthRecent key eventsFinancials
  8. 8. StoresOutlookFarmfoodsImpressive growth underlines appeal of frozen foodFinancialsStoresOutlookSYMBOL GROUPSBenefits from local shopping as independents seek refuge from grocers(Untitled sub-section)CostcutterRebranding imminent as tensions with Nisa Todays continueRecent key eventsFinancialsOutlookTie-up with Nisa-Today’s mutually destructiveMusgraveGrowth slows as Waitrose & Morrisons threatenRecent key eventsFinancialsOutlookPremier (Booker)Develops range to continue expansionRecent key eventsFinancialsOutlookSparOwn brand development bolsters success of store refurbishmentsRecent key eventsFinancialsOutlookSmaller playersBest-one (Bestway)Lifestyle (Landmark Group)Nisa-Today’sMace (Palmer & Harvey McLane)APPENDIXDefinitionsMethodologyFinancial Statistics – VATTrading Profile
  9. 9. Physical DevelopmentComputer RoundingFurther readingAsk the analystVerdict consultingDisclaimerLIST OF TABLESTable: Retailer charges for online grocery shopping 2011Table: Grocers & food specialists definition 2011Table: Sales via grocers & food specialists 2001–11eTable: Channels of distribution 2006–11eTable: Total grocery market size by retailer type 2001–11eTable: Total grocery space by retailer type 2001–11eTable: Annual sales densities by retailer type 2001–11eTable: Total grocery store numbers by retailer type 2001–11eTable: Total food & grocery market consumer expenditure 2001–11eTable: Total food market consumer expenditure 2001–11eTable: Non-durable household goods consumer spends 2001–11eTable: Soft drinks market consumer expenditure 2001–11eTable: Alcoholic drinks consumer expenditure 2001–11eTable: Tobacco products consumer expenditure 2001–11eTable: Shares of the total market held by food & grocery specialists 2006–11eTable: Leading grocery retailers operating statistics 2010/11Table: Leading grocery retailers store profiles 2010/11Table: Grocery space allocation – retailers A–F 2011Table: Grocery space allocation – retailers A–F (continued) 2011Table: Grocery space allocation – retailers G–M 2011Table: Grocery space allocation – retailers G–M (continued) 2011Table: Grocery space allocation – retailers N–W 2011Table: Grocery space allocation – retailers N–W (continued) 2011Table: Advertising media expenditure 2005–10Table: Retailers advertising spend across all media 2010Table: Asda company overview 2011Table: Asda retail proposition 2011Table: Asda UK key operating statistics 2006–11eTable: Asda store portfolio 2001–11eTable: Converted Netto stores opened as at August 18, 2011Table: Converted Netto stores scheduled openings (as at August 18) for 2011Table: Asda space allocation 2011Table: Asda space allocation ( continued ) 2011Table: Asda estimated sales mix 2010Table: The Co-operative Group company overview 2011
  10. 10. Table: The Co-operative Group retail proposition 2011Table: The Co-operative Group UK key operating statistics 2006–11Table: The Co-operative Group trading record trading record 2002–11Table: The Co-operative Group store portfolio 2001–11Table: The Co-operative Group space allocation 2011Table: The Co-operative Group space allocation ( continued ) 2011Table: Iceland company overview 2011Table: Iceland retail proposition 2011Table: Iceland UK key operating statistics 2006–11Table: Iceland trading record trading record 2001–11Table: Iceland store portfolio to March 2001–11Table: Iceland space allocation 2011Table: Iceland space allocation ( continued ) 2011Table: Marks & Spencer company overview 2011Table: Marks & Spencer retail proposition 2011Table: Marks & Spencer UK key operating statistics to March 2006–11Table: Marks & Spencer UK trading record 2001–11Table: Marks & Spencer UK store portfolio 2001–11eTable: Marks & Spencer UK store portfolio (food) 2001–11eTable: Marks & Spencer store breakdown by type at March year end 2009/10 and 2010/11Table: Marks & Spencer space allocation 2011Table: Marks & Spencer space allocation (continued) 2011Table: Morrisons company overview 2011Table: Morrisons retail proposition 2011Table: Morrisons UK key operating statistics 2006–11Table: Morrisons trading record 2001–11Table: Morrisons store portfolio to January 2001–11Table: Morrisons space allocation 2011Table: Morrisons space allocation ( continued ) 2011Table: Morrisons estimated sales mix 2010/11Table: Ocado company overview 2011Table: Ocado retail proposition 2011Table: Ocado UK key operating statistics 2006–11eTable: Ocado trading record 2002–11eTable: Sainsburys company overview 2011Table: Sainsburys retail proposition 2011Table: Sainsburys UK key operating statistics 2006–11eTable: Sainsburys trading record trading record 2001–11Table: Sainsburys UK store portfolio 2001–11eTable: Sainsburys space allocation 2011Table: Sainsburys space allocation ( continued ) 2011Table: Sainsburys estimated sales mix 2010/11Table: Tesco company overview 2011
  11. 11. Table: Tesco retail proposition 2011Table: Tesco UK key operating statistics 2006–11Table: Tesco UK trading record 2001–11Table: Tesco UK store portfolio 2001–11Table: Tesco space allocation 2011Table: Tesco space allocation ( continued ) 2011Table: Tesco estimated sales mix 2010/11Table: Waitrose company overview 2011Table: Waitrose retail proposition 2011Table: Waitrose UK key operating statistics 2006–11Table: Waitrose trading record trading record 2001–11Table: Waitrose store portfolio 2001–11Table: Waitrose space allocation 2011Table: Waitrose space allocation ( continued ) 2011Table: Waitrose estimated sales mix 2010/11Table: Aldi UK key operating statistics to December 2006–11eTable: Aldi UK sales record to December 2001e–11eTable: Aldi UK store numbers to December 2001e–11eTable: Aldi space allocation 2011Table: Aldi space allocation ( continued ) 2011Table: Lidl UK key operating statistics 2006e–11eTable: Lidl UK sales record 2001e–11eTable: Lidl UK store numbers 2001e–11eTable: Lidl space allocation 2011Table: Lidl space allocation ( continued ) 2011Table: Booths overview 2011Table: Booths planned store openings 2011–13Table: Farmfoods overview 2011Table: Costcutter overview 2011Table: Musgrave overview 2011Table: Booker (Premier) overview 2011Table: SPAR overview 2011Table: Grocers & food specialists definition 2011LIST OF FIGURESFigure: Key issues in food & grocery 2011Figure: Food & grocery price inflation vs Volume growth 2009–13eFigure: Food & grocery volume growth forecasts 2009–13Figure: Polarisation in food & grocery 2011Figure: Factors influencing choice of grocer 2011Figure: Waitrose Love Life marketing campaign 2011Figure: Real household disposable income 2009–15eFigure: Sales growth of Aldi and Lidl vs Big Four average 2006–11e
  12. 12. Figure: Iceland – More for your Money marketing 2011Figure: Grocers space – 2005, 2010 and 2015eFigure: Morrisons convenience store concept 2011Figure: Grocers superstores (25,000sq ft and above stores) space growth 2006–15eFigure: Growth in space and decline in sales densities % 2010–15eFigure: Online impact on food & grocery expenditure growth 2006–15eFigure: Growth in online spend per head on food & grocery 2010–2015eFigure: Factors that would make customers more likely to use home delivery 2011Figure: Evolution of promotions 2011Figure: Tesco twitter offers 2011Figure: M&S Dine in for £10 deal – the original grocer meal promotion 2011Figure: Sainsburys Brand Price Match sample voucher 2011Figure: Sainsburys Feed your Family for £50 campaign 2011Figure: Tesco fuel promotion 2011Figure: Key issues in integrating new technology for the food & grocery sector 2011Figure: Tesco mobile app 2011Figure: Waitrose Christmas QR promotion 2010Figure: Sainsburys Facebook page with back to school marketing 2011Figure: Asdas twitter account 2011Figure: Total grocers & food specialists retail sales and year-on-year change 2001–11eFigure: Channels of distribution – share of grocers & food specialists market by retail sales 2006–11eFigure: Change % in total grocery market sales by retailer type 2011e on 2006Figure: Change % in total grocery space by retailer type 2011e on 2006Figure: Change % in annual sales densities by retailer type 2011e on 2006Figure: Change % in total grocery store numbers by retailer type 2011e on 2006Figure: Sources of growth in food &grocery expenditure 2001–11eFigure: Change % in food & grocery expenditure by category 2006–11eFigure: Shares of the total market held by food & grocery specialists 2011eFigure: Retailers share of total market held by food & grocery retailers 2006 and 2011eFigure: Retailers share of market in food & grocery products 2006 and 2011eFigure: Change in operating profit % 2010/11 on 2009/10Figure: Change in sales area % 2010/11e on 2009/10eFigure: Average space allocation by category 2011 vs 2010Figure: Asda fascia 2011Figure: Converted Netto store South Harrow 2011Figure: Asda UK sales and growth 2006–11eFigure: New store interior of former Netto store 2011Figure: Conversion of Netto stores 2011Figure: Asda sales density to December 2006–11eFigure: Asda food & grocery sales (incl VAT) in calendar years 2006–11eFigure: Asda share of total market held by food & grocery retailers 2006–11eFigure: Asda share of market in food & grocery products 2006–11eFigure: Asda Clapham Junction store interior July 2011
  13. 13. Figure: The Co-operative Group fascia 2011Figure: Join the revolution website 2011Figure: New Truly Irresistible range 2011Figure: The Co-operative Group UK sales and growth to January 2006–11Figure: The Co-operative Group operating profit to January 2006–11Figure: The Co-operative Group sales density to January 2006–11Figure: The Co-operative Group food & grocery sales (incl VAT) in calendar years 2006–11eFigure: The Co-operative Group share of total market held by food & grocery retailers 2006–11eFigure: The Co-operative Group share of market in food & grocery products 2006–11eFigure: Selection of The Co-operatives value range 2011Figure: Iceland fascia 2011Figure: Iceland revised advertising campaign 2011Figure: Iceland UK sales and growth to March 2006–11Figure: Iceland operating profit to March 2006–11Figure: Iceland sales density to March 2006–11Figure: Iceland food & grocery sales (incl VAT) in calendar years 2006–11eFigure: Iceland share of total market held by food & grocery retailers 2006–11eFigure: Iceland share of market in food & grocery products 2006–11eFigure: Iceland free home delivery 2011Figure: Marks & Spencer Simply Food fascia 2011Figure: Marks & Spencer UK sales and growth to March 2006-2011Figure: Marks & Spencer UK operating profit to March 2006–11Figure: Y-o-y change % in M&S quarterly divisional sales in UK Q1 2010/11–2011/12Figure: Marks & Spencer sales density (food) to March 2006–11eFigure: Marks & Spencer food & grocery sales (incl VAT) in calendar years 2006–11Figure: Marks & Spencer share of total market held by food & grocery retailers 2006–11eFigure: Marks & Spencer share of market in food & grocery products 2006–11eFigure: Marks & Spencer plan 2013–15Figure: Innovative food items, M&S Marble Arch store 2011Figure: Morrisons fascia 2011Figure: Morrisons family butcher offers 2011Figure: Morrisons pay-day price crunch promotion 2011Figure: Morrisons UK sales and growth to January 2006–11Figure: Morrisons operating profit to January 2006–11Figure: Morrisons sales density to January 2006–11Figure: Morrisons food & grocery sales (incl VAT) in calendar years 2006–11eFigure: Morrisons share of total market held by food & grocery retailers 2006–11eFigure: Morrisons share of market in food & grocery products 2006–11eFigure: Concept of M local store design 2011Figure: Ocado logo 2011Figure: Reflets de France range 2011Figure: Ocado UK sales (ex VAT) and y-o-y growth in years ending in November 2006–11eFigure: Ocado operating profit to end November 2005–10
  14. 14. Figure: Ocado food & grocery sales (incl VAT) in calendar years 2006–11eFigure: Ocado share of total market held by food & grocery retailers 2006–11eFigure: Ocado share of market in food & grocery products 2006–11eFigure: Sainsburys fascia 2011Figure: Sainsburys Switch the Fish campaign with Jamie Oliver 2011Figure: Feed your family for £50 meal planner 2011Figure: Fresh Kitchen – Sainsburys food-to-go concept 2011Figure: Sainsburys UK sales and growth to March 2006–11eFigure: Sainsburys operating profit to March 2006–11Figure: Sainsburys sales density to March 2006–11eFigure: Sainsburys food & grocery sales (incl VAT) in calendar years 2006-11eFigure: Sainsburys share of total market held by food & grocery retailers 2006–11eFigure: Sainsburys share of market in food & grocery products 2006–11eFigure: Sainsburys 2011 tagline Live well for lessFigure: Sainsburys UK coverage 2011Figure: Tesco fascia 2011Figure: Flash in the Pan concept 2011Figure: Tesco UK retail sales (ex VAT) and growth to February 2006–11Figure: Tesco UK operating profit to February 2006–11Figure: Tesco sales density to February 2006–11eFigure: Tesco food & grocery sales (incl VAT) in calendar years 2006-11Figure: Tesco share of total market held by food & grocery retailers 2006–11eFigure: Tesco share of market in food & grocery products 2006–11eFigure: Waitrose brand 2011Figure: little Waitrose fascia 2011Figure: Waitrose Brand Price Match marketing 2011Figure: Waitrose Brand Ambassadors & Hestons Christmas Pudding 2010Figure: Waitrose UK sales (incl VAT) and growth 2006–11Figure: Waitrose operating profit 2006–11Figure: Waitrose sales density to January 2006–11Figure: Waitrose food & grocery sales (incl VAT) in calendar years 2006-11Figure: Waitrose share of total market held by food & grocery retailers 2006–11eFigure: Waitrose share of market in food & grocery products 2006–11eFigure: Marketing campaign backs expansion inside M25 2011Figure: John Lewis filter on waitrose.com HomeDirect tab 2011Figure: The Waitrose way – corporate social responsibility 2011Figure: Aldi fascia 2011Figure: Like brands only cheaper ad campaign 2011Figure: Aldi share of total market held by food & grocery retailers 2006–11eFigure: Aldi share of market in food & grocery products 2006–11eFigure: Lidl fascia 2011Figure: Selection of Lidl product reviews and awards 2011Figure: Lidl share of total market held by food & grocery retailers 2006–11e
  15. 15. Figure: Lidl share of market in food & grocery products 2006–11eFigure: Dedicated MediaCity UK website 2011Figure: Booths partnership with Slow Food UK 2011Figure: Farmfoods new store branding 2011Figure: Farmfoods new location requirements 2011Figure: Costcutter fascia 2011Figure: Local Saver loyalty card 2011Figure: Budgens & Londis fascias 2011Figure: Budgens Price Crash meal solution 2011Figure: Budgens fresh fish offer – sea to shelf in 36 hours 2011Figure: Premier fascia 2011Figure: Euroshopper 2011Figure: SPAR fascia 2011Figure: SPAR Our very own range 2011Latest Research Reports:  Challenges Affecting the Food and Beverage (F&B) Packaging Market  Tea and Ready-to-Drink Tea in the U.S., 4th EditionAbout Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support toour customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsContact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog

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