Small Business Worried By Number Of Supermarkets
New data released by the newspaper the Daily Mail suggests that more than two fifths of towns in Britain have at least five supermarket outlets within a ten minute drive of one another.
The report suggests that 42 per cent of all British towns were in such a position, with some chains owning more than one outlet within a ten minute drive of one other. The finding has alarmed small business.
David Amess, Conservative MP and and chairman of the All-Party Parliamentary Small Shops Group is calling for a government inquiry into the supermarket industry.
Mr. Amess would like the government to investigate claims that supermarket retail chains are choking high street business. Mr. Amess claims that the retailers, through the employment of high priced lawyers, are able to overturn decisions taken by local authority.
The rise of the supermarket in the UK contrasts significantly with the number of independent retailers, which has declined considerably from 500,000 in 145, to just 35,500 today.
The ‘big four’ supermarkets – Asda, Morrisons, Sainsbury’s and Tesco have captured nearly 75 per cent of the £80 billion grocery sector.
Add to the mix the fact that the UK entered recession in 2008, and the story for independent retailers has not been good, with more than 2000 going out of business last year.
The diversification of supermarkets into multiple consumer segments has made it even harder for small businesses to be successful.
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Tesco No Longer Amongst Big Three Retailers Globally
Tesco is no longer amongst the big three global retailers according to recent ranking and report authored by professional services firm Deloitte Touche Tohmatsu.
According to the report, the UK’s leading retailer has dropped from third spot to fourth in the ranking of world’s largest retailers, and was replaced in the number three spot by German retail behemoth Metro.
The report shows that perennial number one, US based retailer Wal-Mart, owner of the UK’s second biggest supermarket chain Asda, retains its position as the world’s largest retail group, ahead of French giant Carrefour.
UK chains Morrisons and Sainsbury’s were also included in the top fifty.
The report, which was featured in the Times newspaper suggests that recession was the primary reason for a fall in profits at tw-thirds of the companies listed.
Ira Kalish, author of the Deloitte report, said: “This has been a tumultuous year for the global retail industry. Sales growth slowed and profitability fell, sharply for some. Many retailers ‘bought’ sales with heavy promotions which hit the bottom line hard. However, we are already seeing evidence that as economic recovery takes hold around the world, retailers should be able to return to a path of improving profitability.”
Tesco is poised to release its Christmas trading update on Tuesday
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Waitrose UK’s Top Performing Grocery Retailer During Holiday Season
The top performing UK grocery retailer over the holiday season turns out to be Waitrose, who managed to record a 14 per cent year on year rise in sales growth during the four weeks ending Boxing Day.
According to market research firm Nielsen, the upmarket food and grocery retailer saw sales increase by 13.6 per cent during the quarter ending December 26th, compared with the same time frame in the previous year.
Waitrose sales increase was nearly double the rate recorded by the dominant British grocery retailer Tesco. The UK’s largest supermarket chain trailed its rivals during the period, registering growth of 7.4 per cent during the course of the four weeks. Tesco registered the lowest sales growth for the period.
Morrisons who placed second on the list recorded 11.8 per cent growth in sales during the holiday season, followed by Asda who registered an 8.6 per cent increase in its sales during the period. Sainsbury’s was fourth on the list, and saw a sales increase of 7.7 per cent during the Christmas shopping season.
Commenting on the results, Nielsen said the grocery market experienced a “robust” December and a “particularly strong” Christmas and said the sector had grown by an aggregate of 6.7 per cent during the four week period.
A Nielsen spokesman said “We had a slow start to the season and from the figures it looks like consumers held back until the final fortnight where we saw some exceptional growth. The level of promotional activity in supermarkets usually drops off in December but it remained at 35pc this year. Shoppers shared in the bonanza – price cuts, bigger than ever promotions and loyalty scheme give-aways all helped encourage shoppers to spend.”
Click Here To Buy Groceries Online From Asda
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Campaigners Blast Low Supermarket Booze Prices
British supermarkets have had accusations levelled against them suggesting that they tend to promote irresponsible alcohol consumption habits by selling booze at cheaper prices than bottled water.
Campaigners have accused retail giants including Tesco, Morrisons and Sainsbury’s of tacit approval of binge drinking, after the retailers were found to be selling beer at a little over 5p per 100 ml, which is 3 pence less than the typical cost of a 100 ml bottle of water.
The campaigners claim that supermarkets encourage binge drinking through the use of cheap alcohol prices to attract customers to their stores, ignoring the health risks that are associated with excessive consumption of alcohol.
Alcohol Concern’s chief executive Don Shenker said that government policy aimed at dealing with binge drinking was being seriously undermined by the price cuts undertaken by retailers.
“Unless they tackle the problem of cheap alcohol, they are fighting a losing battle.The evidence shows young people and harmful drinkers are drawn to very cheap alcohol. Supermarkets sell alcohol at a loss because they know it gets people into the stores. A lot of these sales are irresponsible.” Mr. Shenker said.
A spokeswoman for the British Medical Association added: “It is a real worry that you can buy alcohol cheaper than mineral water. We have a huge problem with alcohol abuse in the UK, so we want a clampdown on these cut-throat price deals.”
Sir Liam Donaldson, the UK’s chief medical officer last month criticised the cheap availability of alcohol at supermarkets, and recommended the introduction of minimum pricing for booze.
Mr. Donaldson suggested that an increase in the average cost of a six pack of beer to £6 or by 50 pence per can, could save as many as 3,400 lives and reduce the number of hospital admissions by as many as 100,00 per year.
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Morrisons Offers Shoppers £4 Christmas Dinner
Retailer Morrisons has joined the Christmas festivities and is offering its customers a three course Christmas dinner for just £4.
The dinner for four comprises a starter of tomato soup, for mains a loin of pork plus seasonal vegetables and a dessert of trifle.
A dinner like that would ordinarily cost shoppers £12, and to promote the deal, the retailer has launched a national advertising campaign.
Angus McIver, Morrisons group marketing director, said: “It is now more common to enjoy several feasts before Christmas Day. Our £4 festive feast helps the household budget at an expensive time of the year.”
UK supermarkets continue to cut prices across multiple product lines as they seek to obtain Christmas shoppers over the holiday season.
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