FOOD RETAILING SECTOR

The UK Food Retail Sector

The UK Food Retail Sector

Introduction

United Kingdom's food retailing sector is under the domination of multiple chains of supermarkets. The paper analyzes and discusses a brief overview of the food retailing sector, its key trends and characteristics, and the economic, social and environmental impact of the supermarkets in contributing to the food retail sector. The changing trends and technology in buying behavior of a consumer is also analyzed within the paper.

The food retailing sector in United Kingdom is rapidly growing sector with a high level of investment by international stores and franchises like Tesco and ASDA. The retail industry is increasing with a contribution of offering non-food goods, but the core of the retailing industry remains with Food Retailing Sector. There is a mature demand for food in the market with consumer preference inclining more towards organically grown nutritious foods. However, the demand for preserved food manages to sustain its demand in the existing consumer market. Food retailing sector contributes. The trend in food retailing is significantly rising as the focus of consumers divert from the streets to on-line sales.

Discussion

The perception that grocery prices are higher in UK than in any other European Union country with support of the effects of inflation, and hi-tech methods used for growing organic food. People prefer green products and companies are focusing towards green marketing. The concept of green marketing caters to the need of consumers who plan to adopt natural, fresh and organic food as a change for a healthy lifestyle. Supermarkets benefit greatly du tot high acceptance by people and for the fact that they are customer-driven institutions. Food retailing sector is, therefore, backed up by sales of such supermarkets. Consumers play a vital role in establishing a trend of relocating retail from street specialist shops like bakery, butcher and many other of the same kind, towards purchasing at supermarkets. People's concern for health and hygiene is identified by the large retailers and served at their best at the supermarkets. This phenomenon is the retail revolution of 1980's.

The food retail sector constitutes of four major retail sales; convenience retailing, traditional retailing, supermarkets and superstores, and alternative channels with a negligible share. About three-fourth food retailing is contributed by the sales of supermarkets and superstores. The remainder is filled in by the sales of convenience retailing and the traditionally small retailers. Everything is available under one roof in such convenience retail stores. During December 2009 till December 2010 food prices rose by 5.7% reflecting the increase in spending by consumers on food items. The beginning of year 2011, sales volume of food retailers dropped down by 3.4% as a result of inflation (Mintel, 2011). Moreover, 75% of the people were interested in making purchases on the internet. Online purchasing trend is now preferences by a majority of customers as they are unable to make out time from their busy schedules or do not have much facility available near their homes. There is a noticeable disparity between the farm gate ...