Market Overview

UK Grocery Report 2018 -


The "UK
Grocery 2018"
report has been added to's

In a nutshell: consumer spending is under enormous pressure. Prices are
rising, wage growth is flat and interest rates are on the up. At the
same time, retailers face increasing cost pressures from online, rate
rises, minimum wage rises and input cost inflation.

Aldi and Lidl's successful run in the UK is continuing unabated.
Together they now account for around 12% of the market according to
Kantar. While the big four are losing share with Tesco, Sainsbury's,
Asda and Morrisons only growing in a lacklustre fashion or with
declining lfls, Aldi UK broke through the 10bn barrier in sales for the
first time in 2017. And a stop to this growth is not in sight.

The structure of the market is changing, with both Tesco and Sainsbury's
buying into wholesale (Booker) and non food (Argos) respectively. (To us
it looks like there is a distinct Brexit shadow hanging over this, a
Tesco retreat from overseas to concentrate on the UK and gain better
access to the supply chain as well as tapping a new domestic market)
Morrisons is the only vertically integrated grocer among the big four
and further pushing its agricultural business. The only one of the big
four not reacting is Asda.

Looking ahead, the two discounters could more than double their market
share from a combined figure of 12% to as much as a quarter of the
market over the next 3-5 years.

If it comes to a no deal Brexit then the damage to the sector would be
immense. The big 4, Tesco, Sainsbury, Asda and Morrisons would suffer
for years to come. And we are saying this without even taking into
account their respective challenges and opportunities, by just pointing
to the considerable darkening of their horizons in the domestic market.

Key Topics Covered:

1. GDP & Population, EU 28

2. EU28 Retail, On A Rebound

3. Grocery Retail, Defensive Sector In Transformation

4. EU28 Retail, Growth

5. Country Profiles: UK - From Innovator To Laggard Thanks To Brexit?

6. Executive Summary: Sector In Thrall To Brexit Uncertainty,
Discounters, Amazon

7. Market Shares And Profiles, The Leading Players

8. Discounters - Aldi And Lidl Transforming UK Grocery Retail

Companies Mentioned

  • Aldi
  • Asda
  • Lidl
  • Morrisons
  • Sainsbury's
  • Tesco

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