UK SUPERMARKET INDUSTRY

UK Supermarket Industry Analysis



UK Supermarket Industry Analysis

Company Introduction

Tesco PLC

Tesco is the largest food retailers in the UK, an estimated 15.5% share of the total market. Tesco is also designed to increase their share of non-market. The two most important factors for the success of Tesco in listening are to customers and learning from mistakes. Offering quality products at low prices and put local people first in the way they conduct their business as their main strategy. Tesco was based in 1919 and commenced its first shop in Edgware, London, UK in 1929; although, over the decades it has developed to become the market leader inside the UK food retail segment. The relative positioning of Tesco's market share with esteem to other premier players in the market has been showed as pursues.

Tesco's success can be seen in the figures. Growth sitting on a dense and balanced territorial development, with six sizes: 177 Mega-markets (Tesco Extra), 448 hypermarkets (Tesco Superstore), 174 supermarkets in the city centre (Tesco Metro), 967 supermarkets in industrial area (Tesco Express) as well as supermarkets for customers in a hurry (and One Stop Tesco Home plus). Or 2,300 stores in the United Kingdom. Some 73 other projects are being validated, if possible, before passing a law competitive. Tesco is also an international presence, where it has 2,420 outlets (79 in China, 192 Indonesia, 144 in Japan, 319 in Poland, 347 in South Korea, 639 in Thailand, 115 in the U.S., where it is established since 2001 after taking 35% stake in Grocery Works).

William Morrison PLC

Wm Morrison Supermarkets is the fourth largest food retailer on the basis of sales in the UK. At the end of FY2011, the company operated 439 stores spread across an area of 12.2 million square feet, and 296 petrol filling stations nationally. Morrison's stores range in the size of 8,000-40,000 square feet. Every week nearly 11 million customers visit its stores. The company operates in a single segment: retailing. The company's retail stores primarily focus on offering fresh products at value price, and great service to its customers. Morrison's fresh food counters offer a selection of fish and meats, bread and backed goods, juice, spreads, and desserts and puddings among other products. The company also offers a wide range of own-brand goods. Morrison's stores also feature 'Market Street', a place where skilled and trained butchers, bakers, and fishmongers prepare food according to customers' requirements. The company also operates petrol filling stations, and offers dry cleaning and photo processing services at its stores (Morrison Plc, 2012).

The company operates its own production facilities and buys fresh food directly from the farmers. This allows Morrison to have a direct control over the production and supply of food to its supermarkets. Morrison manages its commercial operations through wholly owned subsidiaries, including Bos Brothers Fruit and Vegetables BV, Farmers Boy, Farock Insurance Company, Neerock, Wm Morrison Produce, Safeway Limited, Rathbone Kear, Safeway Overseas, and Safeway Stores among others (Morrison Plc, ...