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6% Increase in UK?s Grocery Sector
Jun 07, 2008

An increase of 6% for 12 weeks to April 20, 2008 was witnessed in the earnings of UK’s grocery sector due to the well-documented food price inflation, says TNC Worldpanel.

TNS Worldpanel, the market researcher, revealed that total revenues from the grocery sector of the UK increased by about 6% for 12 weeks to April 20, 2008 over the same time period last year, as reported by
The Press Association.

The period of 12 weeks shows combined sales of worth £20.3 Billion in comparison to sales of £19.2 Billion in 12 weeks of 2007. According to the data, slowdown in consumers spending did not affect the grocery sector; the reason behind the growth in grocery sector is the well-documented inflation in food price, especially in fresh produce, bread and dairy products, in spite of no major shift to price-driven outlets. So, the benefits leading to growth of grocery sector in the UK have been passed on to the consumers.

Moreover, the strong economy of the UK is leading to the growth of middle-class having higher spending power. The flourishing business environment, stable politics and high number of young population are attracting many supermarket chains to the UK market. The need for modern and cosmopolitan retail environment by consumers is also leading to rapid growth in the retail markets and shopping centers. Thus, all these are making the UK’s grocery sector a fast moving market.

Furthermore, the increasing value-for-money and advance convenience services like mobile and online shopping, which attracts maximum number of consumers, is also a reason behind the growth of grocery sector in the country.

Also, several areas in the UK have good options and tough competition among the retailers bad this is acting as a major growth propeller for the country’s grocery sector. Consumers are getting benefits like innovation, choice and value from this competition. The supermarkets are also expanding their businesses and relations with suppliers as results of two-year probe in grocery sector have been announced by the Britain’s competition watchdog.

A Senior Research Analyst at
RNCOS said, “Apart from all these factors, the government support through steps such as competition commission’s inspection in retail industry of Britain affects the growth in this sector. Due to this step, the quality of products is improving, thus enhancing the customer’s satisfaction, thereby leading to sales growth in Britain’s grocery sector.”

Related Market Research Reports:
Middle East Retail Sector Analysis (2007-2010)
Poland Retail Analysis (2008-2012)
UK Supermarket Analysis (2007-2010)