Mintel, This table illustrating the UK supermarket industry including online sales excluding sales from convenience stores currently est.
Due to varying update cycles, statistics can display more up-to-date data than referenced in the text. Economic The economic factors influencing the UK supermarket industry are largely resulting from the current economic state of the UK. The encompassing of these innovations to satisfy social trends aims to improve profitability and efficiency of the supermarkets.
For the purpose of this analysis I have chosen to do a PESTEL analysis of the industry looking into the most relevant factors that have an impact on the industry e. Additional figures from the Office of National Statistics show that despite an increase in the value of grocery store salesthe volume of goods purchased by consumers shows negligible change.
This may however be prevented through a reformed Scottish tax system to make the switch more seamless for supermarkets because generally Scotland does offer lower land and labour costs which could be profitable for UK supermarkets operating in Scotland Groom, Despite Mintel figures showing that online sales have increased, they have gained much less than discounters proving that neither CSR nor convenience are the deciding factors for consumers.
It also caters for elderly customers that prefer to have their shopping delivered rather than go to the supermarkets.
Consumer rights are also a factor influencing the UK supermarket industry. This could only be avoided if the UK government would allow the import of goods to continue as though the UK had not left the EU trade zone which would also mean no major changes to the UK supermarket industry.
From a tactical point of view, this section is also where you need to place your competitive edge without mentioning it explicitly. You would then present your competition.
It also allows customers to give feedback on products and services offered by supermarkets which can greatly benefit supermarkets in their advertising and the products and services they choose to offer. Though it does have an impact the supermarket industry has learnt to adjust to it and is expanding successfully within the PPG6 guidelines Wood et al, Though it may be argued that consumer buying behaviours are social factors, this behaviour is a direct result of the economic situation and is thus listed as an economic factor.
Supermarkets including non-grocery online services further embrace the possibility of retaining or gaining customers through technological innovation. Competition law established by the Office of Fair Trading is a legal factor influencing the supermarket industry.
Favourable weather for the growth of crops will also have an effect on pricing in the supermarkets. The trend for customers to be able to do everything online, for example, is ever apparent through major supermarket chains introducing online food shopping and delivery which as mentioned earlier is showing great success.
The weather can for example influence the growth and harvest of crops, fruit and vegetables or possibly destroy them. An increase in fuel prices has also had an effect on UK supermarkets because it keeps customers from shopping at larger out-of-town stores to save on fuel prices Mintel, The encompassing of these innovations to satisfy social trends aims to improve profitability and efficiency of the supermarkets.
This could have a rather large impact on the industry since leaving the EU also means leaving the trade zone. Cost is the main factor influencing shoppers Mintel, It provides guidelines that businesses need to comply with. Then we would try to estimate the renewal rate of the park to get the volume of annual transactions.
For example if your family has always gone shopping at Tesco then you might continue to only go shopping at Tesco. It can also educate supermarkets on the incentives more valued by customers, to which supermarkets can respond directly by improving these incentives and replacing the ones not valued www.
This text provides general information. The first of the political issues is the possibility of Scotland becoming independent.This business analysis of the UK supermarket industry aims to provide an overview of the factors influencing the industry and the threats they are facing in terms of competitors.
For the purpose of this analysis I have chosen to do a PESTEL analysis of the industry looking into the most relevant factors that have an impact on the industry (e.g. The Germans know the UK market better than the British do In the last two years, the UK supermarket business has turned into a bloodbath of misconceptions.
And the Old Guard — Tesco, Sainsburys and Morrisons — are losing. Four supermarket chains dominate UK food retailing, accounting for percent of the market. Tesco is the market leader, with percent market share, followed by Sainsbury’s with percent, Asda/Wal-Mart with. Supermarkets Latest - Sainsbury and Asda look to merge.
Read more. Increasing concentration. There is clear evidence that the UK grocery supermarket sector is increasingly dominated by a few firms, led by Tesco, Sainsbury and ASDA.
A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.
The UK's form of government is a constitutional monarchy with a parliamentary system, and its capital city is London.
PESTEL Analysis, SWOT Analysis and Risk Analysis of United Kingdom United Kingdom PESTEL Analysis This report covers United Kingdom's PESTEL (political, economic, social, technological, environmental and legal) analysis.Download