Supermarkets in the UK

Big Four

Other Players

Grocery Market Shares of Major Multiples 2001-2005

Source: TNS, 2005

Acessibility to Supermarkets, 2000, 2004

Source: Countryside Agency, 2001

> 4 km from a supermarketAll Rural Households: 21, 22%East of England: 29% - lowest

Essex 67% no general store and 63% no pub

Why has Tesco been so successful?

• Changing strategy from ‘Pile it high, sell it cheap’ to adapting to more sophisticated needs of customer

• New initiatives; healthy eating• New store concepts; Metro, Express, Extra• Loyalty card• Expansion of non food products and

services• Segmenting the market• Internet• Overseas expansion

Segmenting the Market

Premium

Own Brand

Value

Perceptual Map. UK Supermarkets

Price

Quality

Perceptual Map. UK Supermarkets

Range

Quality

% to the UK Farmer

http://www.ukagriculture.com/food/farm_food_countryside/pdf/Food%20value.pdf

Last 15 years - farmer’s share of

food £ 25%

Who gains most from cheap, globally sourced food in UK multiples?

producers

consumers

supermarkets

Exploitation is the Price of Cheaper Food (Oxfam, 2004)

Global retailers, including British supermarkets are, systematically inflicting poor working conditions on millions of women workers to conduct price wars and feed ever-rising consumer expectations of cheap produce

http://www.commondreams.org/headlines04/0209-02.htm

Exporting apples from South Africa to UK supermarkets

Oxfam, 2005http://webct.writtle.ac.uk/H3B219/CSRWomenTadingAwayOurRightsOxfamNov05.pdf

English Apple Consumers

Section 2

Who buys pre-packed and loose English apples, by simple lifestyle, 12 weeks from August 31st to November 20th, 2005?

This shows how the volume of loose and pre-packed English apple sales varies between simple lifestyle segments

The data is presented in index form, with the average volume of supermarket purchases equal to 100. Thus, segments that over-index are more likely to buy English apples and segments that under-index are less likely to do so

(Source: dunnhumby Academy 2005)

Who buys English Cox’s apples, by family lifestage, 12 weeks from August 29th to November 20th, 2005

This chart shows how the volume of English Cox’s apple sales varies between segments according to their family lifestage (100 = average supermarket shopper)

(Source: dunnhumby Academy 2005)

Who buys English Cox’s apples, by detailed lifestyle, 12 weeks from August 29th to November 20th, 2005?

This shows how the volume of English Cox’s apple sales varies between detailed lifestyle segments (100 = average supermarket shopper)

(Source: dunnhumby Academy 2005)

Who buys English Cox’s apples, by region, 12 weeks from August 29th to November 20th, 2005?

This chart shows how the volume of English Cox’s apple sales varies between regions (100 = average supermarket shopper)

(Source: dunnhumby Academy 2005)