threat of new entrants for supermarket industry

Using TESCO as a sample for average-middle-class segment, we observed that supermarkets use a multi-segment positioning that allows retailers to target several segments at the same time with different products. grocery stores in the UK and are split into four sectors: supermarket chains, convenience stores, traditional retail and developing convenience stores and alternative channels (Institute of Grocery Distribution, 2016).

Moreover, food expenditure will increase by 17.7 billion euros between 20 (MINTEL, 2015). Size and Scope of the Supermarket Retailing IndustryĪccording to MINTEL data from 2015, the supermarket retailing sector in the United Kingdom has generated over £157.7 billion becoming the third-largest supermarket retail market of EU member states. This report will analyse supermarkets in the UK for which aspects such as size and scope, brand, type of costumers, and scope of the industry, among others, will be addressed to clarify the current situation and position of retailers for the supermarket industry. Supermarkets –being retailers- have exceptional importance in the market as they provide grocery and general goods to customers daily.įurthermore, UK retailers represent one of the pillars of the UK’s economy and society. Retail is understood as the economic sector containing companies that specifically conduct mass marketing of products or services, to a large number of customers (Hollander, 1960). Furthermore, this document uses customer segmentation as a key element of study for the supermarket retailers marketing strategy and analyses the industry using the “Porter's five forces” model and the PESTLE marketing tool describing their behaviour and standing. The following report presents an overview of Supermarket Retailing to understand how each company stand in the current market.

Threat of new entrants for supermarket industry