MarketLine Blog

Posts tagged to Tesco

Tesco-Booker: The Squeeze on Small Businesses

MarketLine

Tesco, one of the largest retailers in the world, is the most dominant supermarket in the UK market. Its recent announcement to merge with Booker was a surprise to all. Booker occupies a very different area of the market, primarily offering bulk-purchase supply to small retailers, both independent and franchised stores under brands it owns, such as Londis and Budgens. At first glance then, this seems an odd target for Tesco; to merge operations with a company whose target market is so different to its own. Indeed, no one considers… Read more

Supermarkets facing up to the discounters; Asda left behind?

MarketLine

Supermarkets in the UK have faced a tough marketplace in recent years. The recession, and the accompanying squeeze on incomes, has led to many consumers becoming shrewd in their purchases and increasingly looking to find the cheapest option. This has led to a climate in which discounters, and in particular Aldi and Lidl, have been able to thrive. The impact on the big four supermarkets has been evident. Tesco, Sainsbury’s, Asda, and Morrison’s have all seen sales fall and profits eroded. Asda, Tesco, Sainsbury’s, and Morrison’s all responded to the… Read more

Morrison’s: Can’t match up to the discounters?

MarketLine

From November 2, 2015, Morrison’s will be making changes to its Match & More scheme. The program will no longer include Match points on comparable shopping. The scheme, which was introduced in October 2014, gained widespread coverage in the UK for its promise to match the discounters, Aldi and Lidl, on price or refund the difference in the form of points, with vouchers being issued once enough points have been accumulated. While the other major supermarkets in the UK have their own price promise schemes, none have been brave enough… Read more

Pack your bags: England joins other UK nations in ending free plastic bags with caveats

MarketLine

England has become the final part of the UK to introduce a charge for plastic carrier bags in a bid to slash the 7.6 billion handed out annually. However, several caveats and exemptions may stifle the scheme’s success compared to other parts of the UK. Although some retailers (such as M&S and the German discounters Aldi and Lidl) have already introduced plastic bag charges, the government has moved to employ a strategy used in Scotland, Wales, and Northern Ireland which has reduced consumption of plastic bags dramatically. The 7.6 billion… Read more

The driving force behind Aldi’s success: Phantom Brands

MarketLine

Discount supermarket Aldi reported a 65% jump in pre-tax profits in September 2014. More than 95% of Aldi’s products are own label, but many of its products lack direct reference to the retailer. As discussed in the MarketLine case study, Supermarket private labels: growth following economic downturn; market share for retailer brands has increased rapidly over the years, most notably in the UK, Spain, Germany, Italy and the Netherlands.  After years of consistent market share increases, private label now has its strongest competitive position ever. Of particular interest is the… Read more

Improved quality and packaging narrows gap between private and branded products

MarketLine

Consumers are becoming increasingly inquisitive about where their products are being manufactured. Private labels now have a similar quality to other renowned brands; and more consumers are now aware that many private label ‘generic brands’ foods are actually made by the same companies that produce higher priced name brands. Such Knowledge has aided growth in this sector. As discussed in the MarketLine case study, Supermarket private labels: growth following economic downturn, supermarkets are changing consumer perception. Consumers are not having to compromise on the quality of products if they purchase… Read more

Economic downturn provides opportunities for private label sector

MarketLine

During a time of financial crisis and low disposable income, consumers are less likely to buy expensive, branded food products.  According to the Office for National Statistics, disposable income available to households fell 1.7% between the end of 2012 and the first three months of 2013; the biggest decline since early 1987. As discussed in the MarketLine case study, Supermarket private labels: growth following economic downturn, this has in turn led to consumers seeking out cheaper private label products that they can afford when carrying out their weekly food shopping…. Read more

Tesco’s Grocery Retail in the US

MarketLine

In 2007, UK based company Tesco PLC entered the US grocery market with its Fresh & Easy stores. This article will examine Tesco’s market entry, performance, the difficulties it has faced, and what the future holds for Fresh & Easy. On the surface, the US grocery retail market is an attractive prospect to potential new entrants. It is massive in size and scale compared to the UK, and has the potential to provide huge returns. In reality, grocery retailing in the US is a tough, highly competitive industry where market share… Read more

How Tesco Became the UK’s Largest Retailer?

MarketLine

Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This article examines the factors that have led to the growth of the company as the UK’s number one retailer. In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to… Read more