UK Online Grocery Retailing, UK Grocery Market Research Report - Ken Research
Hypermarkets, supermarkets, mixed retailers, convenience
stores and discounters are the distribution channels that have been long used
by grocery retailers in United Kingdom. There are many non-store retailing
channels which include vending, direct selling, internet retailing, home
shopping etc. The distribution channel contributing the most to the grocery
retailers market in 2016 has been the ‘discounters’ who have been expanding
with an impressive value growth.
The consumers are also becoming increasingly price-conscious
that has helped the discounters channel to grow. The discounters have well
provided the cheapest products to consumers like lobsters being sold by Lidl at
just GBP2.99. Another reason for the growth is that there is a focus on luxury
discounting and also the store network of many of the leading companies is
expanding.
J Sainsbury Plc, Aldi, Lidl Ltd, Tesco Plc and Marks &
Spencer Plc are some of the leading grocery retailers in United Kingdom with
the leader being Tesco Plc. The company uses a variety of distribution channels
for selling its products including hypermarkets, supermarkets and convenience
stores along with some forecourt retailers. The store also has came across a
lot of price cuts recently which resulted in a loss in value share. The company
also closed many of its underperforming stores and shifted its call centre
operations in one place. This led to a further reduction in sales volume of the
company. Despite all this, the company has been viewed recently to increase the
workers’ pay by 10.5% which means they will now be more dedicated towards work
and the company has also improved its maternity benefits. It feels this will
help the company to acquire better talent as well as take better care of the
needs of the employees. Even after the pay hike, Aldi has prolonged to be the
highest paying grocery retailer in UK.
According to the report, “Grocery Retailers in the United Kingdom”, the recent developments have
changed the market dynamics. There is increasing competition in the market with
the coming in of German discounters which are gaining popularity rapidly.
Currently, internet retailing of groceries is also capturing a larger market
share.
United Kingdom is considered the most mature market for
online groceries in the West but the share of internet selling is still very
small. Ocado is the biggest online-only grocery retailer in the United Kingdom
but is very far behind when compared to the online sales of major supermarkets.
This scenario is expected to change with the acquisition of Whole Foods by
Amazon. Amazon is an e-commerce giant which is expected to start selling
groceries through physical stores. This will further augment the online sale of
groceries as well as give tough competition to other companies with a physical
presence.
The consumers have been seen as turning greatly price
conscious. They are demanding better service, more value and greater
convenience. The companies are trying to keep up with the changing consumer
demands in order to retain and grow their consumers. Discounters, convenience
stores and internet retailing are the three channels which are expected to grow
rapidly in the future.
Many of the retailers are also focusing to aggressively
market their brands especially via social media platforms. The growing
competition may further lead to a reduction in prices offered by the grocery
retailers. They may adopt product mixes of discount as well as premium priced
products which will permit them to cater to demands by a wider consumer base in
the coming years.
Key Topics Covered in
the Report
UK Grocery Industry Trends
UK Grocery Market Research Report
UK Poultry Market Demand
UK Grocery Leading Retailers and Distributors
UK Online Grocery Market Revenue
Green Vegetable Market in UK
UK Frozen Foods Industry Demand
UK Grocery Industry Future Outlook
UK Online Grocery Retailing
To know more about the
research report:
Related reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
Comments