• Save
Bryan roberts, Planet Retail
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Bryan roberts, Planet Retail

  • 1,170 views
Uploaded on

Bryan roberts, Planet Retail, presentation at Building Supermarkets 2010.

Bryan roberts, Planet Retail, presentation at Building Supermarkets 2010.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,170
On Slideshare
1,170
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Five largest have over 80% market share – others inc Waitrose Iceland, Discounters & Farm Foods.Other others includes multiples, symbols, independents etc
  • Five largest have 54% market share – around 55 companies with grocery sales of over £100 million

Transcript

  • 1. Update on market activity
    Building Supermarkets, July 2010
    Planet Retail Ltd
  • 2. Agenda
    • Overview & introduction
    • 3. Where the Big 4 (Big 5?) are going
    • 4. Whither the discount threat?
    • 5. ‘New’ entrants & partnerships
    • 6. Likely drivers & impact on store development
    • 7. Conclusions & outlook
  • Overview & introduction
  • 8. Introduction
    • We need to think beyond ‘supermarkets’.
    • 9. Big 4 (Big 5?) all pursuing multi-channel .
    • 10. Discounters here to stay despite short-term ‘problems’.
    • 11. Non-traditional food retail is where the growth is.
    • 12. Drivers for development set to include convenience, non-food, planning constraints & e-commerce.
  • UK food retail – the traditional view
  • 13. UK food retail – the non-traditional view
  • 14. Strategies of the major players
  • 15.
    • Typical new grocery space per year: 2.5 million sq ft.
    • 16. 2010 best case: 5 million sq ft.
    • 17. Clearly no slowdown in the pace of development!
  • 18.
    • Rolling out Tesco Direct desks in many larger stores to offer full non-food range.
    • 19. Tesco Bank and Tesco Mobile desks also appearing in larger stores.
    • 20. Aim of reaching 2,000 Express c-stores (1,100+ currently).
    • 21. Lack of public ambitions for Homeplus.
    • 22. Tesco Extra annual growth likely to slow to a trickle.
    • 23. 2 dark stores trading so far (more to come).
  • 24.
    • Organic growth plans for 2010 split 50/50 between new stores & extensions (10 each).
    • 25. Five year target of increasing Asda Livings from 25 to 150 units.
    • 26. Netto deal has enabled Asda to smash target of 100 smaller supermarkets (up from current 25).
    • 27. 193 8,000 sq ft Asdas will come on stream regulators permitting.
    • 28. Non-food leadership will require more substantial investment/acquisitions.
    • 29. Service counters, Click & Collect gaining pace, new dark store for London to join existing unit in Leeds.
  • 30.
    • On track for 2.5 million sq ft, or 15%, of gross new space growth in two years to March 2011.
    • 31. New openings focused on North & Scotland.
    • 32. Smaller supermarkets & c-stores a focus of growth.
    • 33. Expansions of existing stores.
    • 34. Online & financial services a priority.
    • 35. Looking to build on progress in non-food.
    • 36. Benefiting from Nectar loyalty scheme with 17 million members.
  • 37.
    • Not the same level of non-food space pressure, although the chain is opening Techno centres and has piloted a Peacocks concession in Bradford store.
    • 38. Small stores now very much an acceptable alternative to standard big boxes as it journeys from “National to Nationwide”.
    • 39. No e-commerce offer to accommodate (yet?).
    • 40. Sustainability agenda is being pursued in a quiet and modest fashion.
  • 41.
    • Main focus to continue to be on integration of Somerfield & rebranding of stores to common identity - 65% of stores now rebranded.
    • 42. Strong uplift in sales from rebranded stores.
    • 43. Somerfield deal expanded presence in supermarkets.
    • 44. First signs of e-commerce (electricals & furniture kiosks being piloted in 3 larger stores).
    • 45. Further absorption of regional co-ops?
  • Commonalities
    • Small format food stores a universal trend following Asda’s Netto deal.
    • 46. Morrisons is the only exception to prove the e-commerce rule.
    • 47. Non-food key, but only Tesco & Asda making specialist play.
    • 48. Click & Collect becoming commonplace.
    • 49. Growing importance of ancillary services such as banking, foodservice, photo, etc.
    • 50. Sustainability remains a major factor despite the downturn.
    • 51. Heading towards the resurgence of the high street – but within a supermarket.
  • Whither the discount threat?
  • 52. Is the discount threat fading?
  • 53. Consistent under-delivery on growth targets…
    • 2008: Aldi claimed it would “open a store a week for the foreseeable future”.
    • 54. New stores: 2008 – 55; 2009 – 15.
    • 55. 2008: Lidl states aim of 40 – 50 new stores per year.
    • 56. New stores: 2008 – 49; 2009 – 36.
    • 57. 2008: Netto states: “Plans to open around 1,000 additional stores in the long-term”.
    • 58. 2010: Sells up to Asda.
  • …but still long-term potential
    • Lidl set to be trading through 580 stores by end-2010.
    • 59. Aldi on track for 430 units by end of the year.
    • 60. Combined total of 1,000 stores could conceivably reach at least 2,000.
    • 61. Main limit on growth: site availability, particularly for the more fastidious Aldi.
    • 62. Despite the press coverage dying down, both chains are making steady progress and gaining consumer acceptance.
  • ‘New’ entrants & partnerships
  • 63. Some unfamiliar names set to grow the fastest
    Forecast % growth , 2010/15
    Source: Planet Retail Ltd – www.planetretail.net
  • 64. Many non-trad retailers looking to build food assortments
  • 65. Partnerships progressing…
    • Seven Waitrose stores stocking a number of H&B categories consisting of Boots own labels alongside a number of leading brands.
    • 66. Initial customer feedback reportedly ‘mixed’.
  • Partnerships progressing
    • Three Boots stores stocking a larger range of lunchtime and convenience food, including Essential Waitrose: 1,500 products supplied by Waitrose.
  • Partnerships progressing…
    • Partnership with Welcome Break for MSA c-stores.
    • 67. 11 stores trading so far.
    • 68. Heralded the opening of the first sub-3,000 sq ft c-store in Cambridge in June 2010.
    • 69. Small stores reportedly trading well.
  • Partnerships progressing…
    • Other retailers exploiting opportunities.
  • Likely drivers and impact on store development
  • 70. Key drivers for likely growth strategy
    • Zoning & planning framework making big box more problematic.
    • 71. Tesco’s ubiquity will create more problems for them.
    • 72. Big box bottleneck encouraging store extensions & mezzanines.
    • 73. All retailers shifting focus towards small box development.
    • 74. Rising importance of e-commerce.
  • Non-food formats generating higher ROI
    Asda: ROI by Format
    Source: Planet Retail Ltd – www.planetretail.net
  • 75. E-commerce impacting store development strategy
    • Both Tesco & Asda augmenting instore picking for grocery with the opening of dark stores – greater efficiency & less inconvenience. Ocado plotting a new DC in Midlands.
    • 76. E.g. Asda Leeds: 50,000 sq ft centre housing 500 colleagues.
    • 77. Much more efficient – pickers pick twice as many orders per hour (approx 250 per hour) = fourfold increase in the # of delivery slots (anywhere between 12,000-15,000 per week using 50 vans).
    • 78. Customers can have their bread baked to order. A full state-of-the-art bakery is included - a colleague arrives at midnight and bakes only what's been ordered that day ensuring no waste.
    • 79. Zero waste to landfill. All waste is returned to depot where it's recycled.
  • Outlook
    • No real sign of the space race abating, but clear strategic shift towards smaller stores, auxiliary services & e-commerce.
    • 80. Food market still the preserve of the big 5, but aggressive incursions from all sides.
    • 81. Fastest growing food retailers are non-specialists.
    • 82. Discount not the threat it was a year ago, but will steadily build market share.
    • 83. Retailers becoming more innovative & collaborative to generate growth above & beyond new space.
    • 84. Mounting evidence that supermarkets are chasing market share of consumer spending, not just food.
  • www.planetretail.net
    2010