Different aisles: Supermarkets expand their focus on online and convenience offerings to achieve growth

The Supermarkets industry has undergone radical change over the past five years. The lingering effects of the economic downturn, extensive changes in consumer shopping habits and the aggressive expansion of discount supermarkets Aldi and Lidl have shaken up the industry considerably. In March 2014, Tesco and Morrisons sparked a price war by announcing large price cuts on numerous items. Asda and Sainsbury’s followed suit, announcing similar cuts to prices over the rest of the year. This price war was primarily designed to stall the advance of discount supermarkets, which have significantly increased their market shares over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Despite weak performance, food inflation is expected to support current-year growth
  • A number of operators have been struggling to make their online operations profitable
  • Operators are expected to open more mini-supermarkets to target the convenience market
  • Industry Report - Industry Analysis Chapter

    Over the past five years, the Supermarkets industry has undergone considerable change. Changing consumer shopping habits, such as transitioning to the cheaper products offered by discounters, have negatively affected the Big Four and led to the rapid expansion of both Aldi and Lidl. The sudden shift in consumer behaviour brought on by the recession accelerated trends already apparent in the industry. These trends led to the Big Four supermarkets, which have traditionally dominated the industry, losing market share. In response, these supermarkets, Tesco, Sainsbury’s, Asda and Morrisons, instigated a price war in early 2014 that has continued into the current year. As a result of this, revenue fell over the three years through 2016-17. How...purchase to read more.

    Additional Insights for the Supermarkets Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets Industry are

  • Ability to control stock on hand
  • Attractive product presentation
  • Availability of car parking
  • IBISWorld analysts also discuss how external factors such as Demand from department stores and Demand from e-commerce and online auctions in the Supermarkets industry impact industry performance..

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    What's in this report

    What is the Supermarkets Industry?

    Supermarkets sell a range of groceries and food, including fruit, vegetables, bread, canned goods, toiletries, dairy goods, alcohol, cleaning products and cigarettes. Off licences, greengrocers and symbol group and non-affiliated independent convenience stores are not included in this industry.

    Industry Products
  • Meat, fish and delicatessen items
  • Fruit and vegetables
  • Dairy products
  • Beverages
  • Frozen food
  • Other food
  • General merchandise
  • Industry Activities
  • Grocery retailing
  • Fruit and vegetable retailing
  • Bakery product retailing
  • Delicatessen product retailing
  • General merchandise retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from department stores
  • Demand from e-commerce and online auctions
  • Consumer confidence index
  • Population
  • Real household disposable income

  • Current Performance
  • Market mix
  • Cutting down
  • Purchases and profit
  • Online expansion
  • External competition stacks up
  • Cost controls
  • Chart: Revenue Growth

  • Industry Outlook
  • A wider selection
  • Purchase habits
  • Technological advances
  • Table: Supermarkets Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Fruit & Vegetable Wholesaling
  • Meat Product Manufacturing
  • Meat Wholesaling
  • Potato Crisps & Snacks Production

  • Products & Services
  • Beverages
  • Meat, fish and delicatessen items
  • General merchandise
  • Other food
  • Frozen food
  • Dairy products
  • Fruit and vegetables
  • Chart: Supermarkets Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Fifth income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • First income quintile
  • Chart: Major Market Segmentation for the Supermarkets Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingRent, utilities, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Supermarkets Industry

  • Industry Globalization
    Tesco plc, Sainsbury's Supermarkets Ltd, Asda Stores Limited, Wm Morrison Supermarkets plc, Aldi Stores Ltd,
  • Table: Tesco plc - financial performance
  • Table: Sainsbury's Supermarkets Ltd - financial performance
  • Table: Asda Stores Limited - financial performance
  • Table: Wm Morrison Supermarkets plc - financial performance
  • Table: Aldi Stores Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Supermarkets Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Loss Leader
  • A product sold at a discounted price below the cost of production which is intended to attract customers who will then purchase other products.
  • Multichannel Retailing
  • Allowing customers to purchase goods using several different channels. These can include the internet, mobile phones and physical stores.
  • Radio-Frequency Identification (Rfid)
  • A chip incorporated in product packaging so that products can be identified and tracked throughout the supply chain.
  • Slotting Fee
  • The fee supermarkets charge manufacturers to put their products on shelves in stores.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Supermarkets market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Supermarkets:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Supermarkets market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Supermarkets, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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