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Supermarkets - Europe - November 2017

“The days when food retailing was a major growth sector have come to a very sudden end. Food retailers have to cope with the problems of maturity and a shift in demand from large stores to small ones. The challenges are enormous. This is the biggest change in food retailing since the development of larger stores began 70 years ago.”
– Richard Perks, Director of Retail Research

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Table of contents

  1. Overview

    • Areas covered in this report
      • Consumer research coverage
        • Technical notes
          • Consumer spending
            • Retail sales
              • Financial definitions
                • Currencies
                  • Abbreviations
                    • VAT rates
                      • Figure 1: Europe: VAT rates, 2012-17
                  • Executive Summary – Europe – The Market

                      • The market
                        • Sector size and forecast
                          • Figure 2: Europe: Food retailers, sales, excl. VAT, 2012-17
                          • Figure 3: Europe: Food retailers, forecast sales, excl. VAT, 2018-22
                        • Consumer spending
                          • Figure 4: Europe: Consumer spending on food, drink and tobacco, inc VAT, 2012-16
                          • Figure 5: Europe: Consumer spending on health and beauty products, inc. VAT, 2012-16
                          • Figure 6: Europe: Spending on food, drink, tobacco and personal care as % all consumer spending, 2016
                        • Inflation
                          • Figure 7: Europe: Harmonised index of food and non-alcoholic beverages prices, annual % change, 2012-17
                          • Figure 8: Europe: Harmonised index of alcohol and tobacco prices, annual % change, 2012-17
                        • Online
                            • Figure 9: Europe: Proportion of individuals who have bought groceries online in the last 12 months, 2012-16
                            • Figure 10: Europe: Proportion of individuals who have bought groceries online in the last 12 months, 2016
                          • Online share of food retailers’ sales
                            • Figure 11: Leading European economies: online share of all food retailers’ sales, 2016
                          • Leading players
                            • Netherlands
                              • Switzerland
                                • Croatia
                                  • Italy
                                    • Russia
                                      • Figure 12: Europe: Leading food retailers, sales, 2014/15-2016/17
                                      • Figure 13: Europe: Leading food retailers, outlets, 2014/15-2016/17
                                      • Figure 14: Europe: Leading food retailers, sales per outlet, 2014/15-2016/17
                                    • Market shares
                                      • Figure 15: Europe: Leading food retailers, share of all food retailers’ sales, 2014/15-2016/17
                                    • What we think
                                      • Maturity
                                        • Online
                                          • Inflation
                                            • What next?
                                            • Executive Summary – Europe – The Consumer

                                                • The research
                                                  • Where people shop
                                                      • Figure 16: Europe: use of stores and online for grocery shopping, September 2016
                                                    • Where they shop
                                                        • Figure 17: Europe: number of retailers taking more than 10% of all main shoppers, September 2017
                                                      • Discounters
                                                        • Figure 18: Europe: share of main shoppers and top-up shoppers of top two discounters September, 2017
                                                      • Market leaders
                                                        • Figure 19: Europe: grocery market leader by share of main shoppers, September 2017
                                                      • Other supermarkets used
                                                          • Figure 20: Europe: top-up grocery market leader by share of shoppers, September 2016
                                                        • Factors to improve at grocers
                                                          • Top priority
                                                              • Figure 21: Europe: grocery shoppers’ ranking of priority for improvement, September 2017
                                                            • Top 5 priorities
                                                                • Figure 22: Europe: grocery shoppers top 5 priorities for improvement, September 2017
                                                            • Executive Summary – Europe - Innovation and Launch Activity

                                                              • Casino testing payment solutions that dispense with checkouts altogether
                                                                • ‘The Supermarket of the Future’ debuts in Milan
                                                                  • Voice-enabled grocery shopping
                                                                    • Shoppers collecting and delivering online grocery orders for other customers
                                                                      • New click-and-collect service is the largest of its kind in France
                                                                        • Aldi Süd launches car sharing service
                                                                          • A real-time solution to combating food waste in Italy
                                                                            • Continente adds Google Street View
                                                                            • France

                                                                              • Overview
                                                                                • What you need to know
                                                                                  • Areas covered in this report
                                                                                    • Executive summary
                                                                                      • The market
                                                                                        • Spending and inflation
                                                                                          • Figure 23: France: grocery market size segmentation, 2016
                                                                                        • Channels of distribution
                                                                                          • Figure 24: France: estimated distribution of spending on food and drink, 2016
                                                                                        • Sector size and forecast
                                                                                          • Figure 25: France: retail sales by format, annual % growth in value sales (incl. VAT), 2012-16
                                                                                        • Leading players
                                                                                          • Key metrics
                                                                                            • Market shares
                                                                                              • Figure 26: France: leading grocers’ shares of all food retailers sales, 2016
                                                                                            • Online
                                                                                              • Figure 27: France: drive click and collect, sales development, 2012-16
                                                                                            • The consumer
                                                                                              • Who shops for groceries
                                                                                                • Figure 28: France: responsibility for grocery shopping, by gender, September 2017
                                                                                              • How they shop for groceries
                                                                                                • Where they shop for groceries
                                                                                                  • Figure 29: France: type of shopping at grocery retailers, September 2017
                                                                                                • Factors to improve at grocery retailers
                                                                                                  • Figure 30: France: factors to improve at grocery retailers, September 2017
                                                                                                • What we think
                                                                                                  • Issues and insights
                                                                                                    • Grocery retailers must up their game on home delivery
                                                                                                      • The facts
                                                                                                        • The implications
                                                                                                          • Focus on fresh foods
                                                                                                            • The facts
                                                                                                              • The implications
                                                                                                                • Impact of healthy eating and being “green” on grocery shopping
                                                                                                                  • The facts
                                                                                                                    • The implications
                                                                                                                      • The market – What you need to know
                                                                                                                        • Economy picks up speed after prolonged period of subdued growth
                                                                                                                          • Spending on food and drink growing in value and volume terms
                                                                                                                            • Grocers are the primary channel for buying food and drink
                                                                                                                              • Retail sales strengthened again in 2016
                                                                                                                                • Non-food sales in decline at the hypermarkets
                                                                                                                                  • Spending and inflation
                                                                                                                                    • Signs of growth in economic indicators
                                                                                                                                      • Food and drink spending picked up in 2016
                                                                                                                                        • Figure 31: France: consumer spending on food, drink and tobacco (incl. VAT), 2012-17
                                                                                                                                      • Inflation
                                                                                                                                        • Figure 32: France: consumer prices * of food and drink, annual % change, 2012-16
                                                                                                                                        • Figure 33: France: consumer prices* of food and drink, annual % change, Jan 2016-Sept 2017
                                                                                                                                      • Channels of distribution
                                                                                                                                        • Grocers dominate
                                                                                                                                          • Specialists a vital part of French daily life
                                                                                                                                            • Figure 34: France: estimated distribution of spending on food and drink, 2016
                                                                                                                                          • Sector size and forecast
                                                                                                                                            • Total retail sales recovering, further growth forecast in 2017
                                                                                                                                              • Specialists outpacing the grocers
                                                                                                                                                • Figure 35: France: food retailers, sales (excl. VAT), 2012-17
                                                                                                                                              • But smaller stores outperforming larger ones
                                                                                                                                                  • Figure 36: France: retail sales by format, annual % growth in value sales (incl. VAT), 2012-16
                                                                                                                                                • Decline in non-food sales at the grocers
                                                                                                                                                  • Figure 37: France: sales in supermarkets and hypermarkets by type of product, January 2012-September 2017
                                                                                                                                                  • Figure 38: France: food retailers, forecast sales (excl. VAT), 2017-22
                                                                                                                                                • Leading players – What you need to know
                                                                                                                                                  • Leclerc leads
                                                                                                                                                    • Decline of the hypermarket continues
                                                                                                                                                      • Lidl’s move upmarket
                                                                                                                                                        • Share of hypermarkets down, smaller stores up
                                                                                                                                                          • Some €6 billion spent online on groceries
                                                                                                                                                            • “Drive” click and collect the dominant form of online grocery shopping
                                                                                                                                                              • Leading players
                                                                                                                                                                • Leclerc leads
                                                                                                                                                                  • Ongoing decline of the hypermarket
                                                                                                                                                                    • Lidl moves more upmarket
                                                                                                                                                                      • Figure 39: France: leading grocers, sales (excl. VAT), 2013-16
                                                                                                                                                                      • Figure 40: France: leading grocers, outlets, 2013-16
                                                                                                                                                                      • Figure 41: France: leading grocers, sales per outlet, 2013-16
                                                                                                                                                                    • Market shares
                                                                                                                                                                        • Figure 42: France: leading grocers’ shares of all food retailers’ sales, 2013-16
                                                                                                                                                                      • Online
                                                                                                                                                                        • The online sector as a whole
                                                                                                                                                                          • Online grocery market size
                                                                                                                                                                            • Shopping online for food
                                                                                                                                                                              • Figure 43: France: percentage of all individuals purchasing online in the past 12 months, 2012-16
                                                                                                                                                                            • “Drive” click and collect dominates
                                                                                                                                                                              • Figure 44: France: drive click and collect, sales development, 2012-16
                                                                                                                                                                              • Figure 45: France: leading grocery retailers’ turnover from drive services, 2016
                                                                                                                                                                            • Developing the Drive format
                                                                                                                                                                              • Pedestrian Drives
                                                                                                                                                                                • Home delivery services growing
                                                                                                                                                                                  • Third party delivery services
                                                                                                                                                                                    • The consumer – What you need to know
                                                                                                                                                                                      • Nearly everyone shops for food
                                                                                                                                                                                        • Men sharing the load more
                                                                                                                                                                                          • In-store shopping still the norm
                                                                                                                                                                                            • Changes to the way they shop
                                                                                                                                                                                              • Leclerc extending its lead
                                                                                                                                                                                                • Evidence of Lidl’s premiumisation
                                                                                                                                                                                                  • Quality of fresh foods has the most room for improvement
                                                                                                                                                                                                    • Who shops for groceries
                                                                                                                                                                                                      • Figure 46: France: responsibility for grocery shopping, September 2017
                                                                                                                                                                                                    • Men participating more
                                                                                                                                                                                                      • Figure 47: France: responsibility for grocery shopping, by gender, September 2017
                                                                                                                                                                                                    • How they shop for groceries
                                                                                                                                                                                                      • Figure 48: France: how they shop for groceries, September 2017
                                                                                                                                                                                                      • Figure 49: France: how they shop for groceries, by age and gender, September 2017
                                                                                                                                                                                                    • Shopping behaviours
                                                                                                                                                                                                      • Figure 50: France: grocery shopping habits, Q3 2017
                                                                                                                                                                                                    • Growing interest in ethical and environmental shopping
                                                                                                                                                                                                      • Figure 51: France: grocery shopping habits, Q4 2015 and Q3 2017
                                                                                                                                                                                                    • Where they shop for groceries
                                                                                                                                                                                                      • Leclerc extending its lead
                                                                                                                                                                                                        • Lidl leads the discounters
                                                                                                                                                                                                          • Figure 52: France: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                          • Figure 53: France: grocery retailer they spend the most with, by average age and income, September 2017
                                                                                                                                                                                                          • Figure 54: France: type of shopping at grocery retailers, September 2017
                                                                                                                                                                                                          • Figure 55: France: repertoire of grocery retailers used for top up shopping in a typical month, September 2017
                                                                                                                                                                                                        • Factors to improve at grocery retailers
                                                                                                                                                                                                          • Figure 56: France: factors to improve at grocery retailers, September 2017
                                                                                                                                                                                                        • Leclerc
                                                                                                                                                                                                          • Figure 57: France: factors to improve at grocery retailers, relative importance compared to the average, Leclerc, September 2017
                                                                                                                                                                                                        • Carrefour
                                                                                                                                                                                                          • Figure 58: France: factors to improve at grocery retailers, relative importance compared to the average, Carrefour, September 2017
                                                                                                                                                                                                        • Intermarché
                                                                                                                                                                                                          • Figure 59: France: factors to improve at grocery retailers, relative importance compared to the average, Intermarché, September 2017
                                                                                                                                                                                                        • Appendix – Data sources, abbreviations and supporting information
                                                                                                                                                                                                          • Abbreviations
                                                                                                                                                                                                            • Data sources
                                                                                                                                                                                                              • INSTITUT NATIONALE DE LA STATISTIQUE ET DES ÉTUDES ÉCONOMIQUES (INSEE) – Paris
                                                                                                                                                                                                                • EUROSTAT – Luxembourg
                                                                                                                                                                                                                  • EDITIONS DAUVERS - Rennes
                                                                                                                                                                                                                  • Germany

                                                                                                                                                                                                                    • Overview
                                                                                                                                                                                                                      • What you need to know
                                                                                                                                                                                                                        • Areas covered in this report
                                                                                                                                                                                                                          • Executive summary
                                                                                                                                                                                                                            • The market
                                                                                                                                                                                                                              • Consumer spending
                                                                                                                                                                                                                                • Figure 60: Germany: consumer spending on food, drink and tobacco (incl. VAT), annual % change, 2012-17
                                                                                                                                                                                                                              • Inflation
                                                                                                                                                                                                                                • Figure 61: Germany: consumer prices* of food and drink, annual % change, April 2016-September 2017
                                                                                                                                                                                                                              • Channels of distribution
                                                                                                                                                                                                                                • Figure 62: Germany: estimated distribution of spending on food, drink and tobacco, 2016
                                                                                                                                                                                                                              • Sector size and forecast
                                                                                                                                                                                                                                • Leading players
                                                                                                                                                                                                                                  • Key metrics
                                                                                                                                                                                                                                    • Market shares
                                                                                                                                                                                                                                      • Figure 63: Germany: leading grocers’ shares of all food retailers’ sales, 2016
                                                                                                                                                                                                                                    • Online
                                                                                                                                                                                                                                      • Figure 64: Germany: how they shop for groceries, by parental status, September 2017
                                                                                                                                                                                                                                    • The consumer
                                                                                                                                                                                                                                      • Who shops for groceries
                                                                                                                                                                                                                                        • Figure 65: Germany: responsibility for grocery shopping, September 2017
                                                                                                                                                                                                                                      • How they shop for groceries
                                                                                                                                                                                                                                        • Figure 66: Germany: how they shop for groceries, September 2017
                                                                                                                                                                                                                                      • Where they shop for groceries
                                                                                                                                                                                                                                        • Figure 67: Germany: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                                                      • Factors to improve at grocery retailers
                                                                                                                                                                                                                                        • Figure 68: Germany: factors to improve at grocery retailers, September 2017
                                                                                                                                                                                                                                      • What we think
                                                                                                                                                                                                                                        • Issues and insights
                                                                                                                                                                                                                                          • The allure of online grocery shopping for families
                                                                                                                                                                                                                                            • The facts
                                                                                                                                                                                                                                              • The implications
                                                                                                                                                                                                                                                • Good things come to those who don’t make consumers wait
                                                                                                                                                                                                                                                  • The facts
                                                                                                                                                                                                                                                    • The implications
                                                                                                                                                                                                                                                      • The market – What you need to know
                                                                                                                                                                                                                                                        • Consumer spending driven up by inflation
                                                                                                                                                                                                                                                          • Grocers account for 80% of consumer spending
                                                                                                                                                                                                                                                            • Food retailers’ sales just shy of €200 billion in 2017
                                                                                                                                                                                                                                                              • Spending and inflation
                                                                                                                                                                                                                                                                • Domestic spending continues to drive the economy
                                                                                                                                                                                                                                                                  • Spending in 2017 pushed up by inflation
                                                                                                                                                                                                                                                                    • Figure 69: Germany: consumer spending on food and drink (incl. VAT), 2012-17
                                                                                                                                                                                                                                                                  • Inflation
                                                                                                                                                                                                                                                                    • Figure 70: Germany: consumer prices* of food and drink, annual % change, 2012-16
                                                                                                                                                                                                                                                                    • Figure 71: Germany: consumer prices* of food and drink, annual % change, April 2016-September 2017
                                                                                                                                                                                                                                                                  • Channels of distribution
                                                                                                                                                                                                                                                                    • Figure 72: Germany: estimated distribution of spending on food, drink and tobacco, 2016
                                                                                                                                                                                                                                                                  • Sector size and forecast
                                                                                                                                                                                                                                                                    • Grocers continue to grow faster than specialists
                                                                                                                                                                                                                                                                      • Figure 73: Germany: food retailers, sales (excl. VAT), 2012-17
                                                                                                                                                                                                                                                                      • Figure 74: Germany: food retailers, forecast sales (excl. VAT), 2017-22
                                                                                                                                                                                                                                                                    • Leading players – What you need to know
                                                                                                                                                                                                                                                                      • Catering to convenience
                                                                                                                                                                                                                                                                        • Edeka leads but Rewe catching up
                                                                                                                                                                                                                                                                          • Online grocery retailing gaining traction
                                                                                                                                                                                                                                                                            • Online grocery retailing gaining traction
                                                                                                                                                                                                                                                                              • Leading players
                                                                                                                                                                                                                                                                                • Edeka focusses on convenience
                                                                                                                                                                                                                                                                                  • Rewe has a good year
                                                                                                                                                                                                                                                                                    • Aldi invests at home
                                                                                                                                                                                                                                                                                      • Kaiser’s Tengelmann fascia finally disappears
                                                                                                                                                                                                                                                                                        • Figure 75: Germany: leading grocers, sales, 2013-16
                                                                                                                                                                                                                                                                                        • Figure 76: Germany: leading retailers, outlets, 2013-16
                                                                                                                                                                                                                                                                                        • Figure 77: Germany: leading retailers, sales per outlet, 2013-16
                                                                                                                                                                                                                                                                                      • Market shares
                                                                                                                                                                                                                                                                                        • Figure 78: Germany: leading grocers’ shares of all food retailers’ sales, 2013-16
                                                                                                                                                                                                                                                                                      • Online
                                                                                                                                                                                                                                                                                        • The online sector as a whole
                                                                                                                                                                                                                                                                                          • Online grocery market size
                                                                                                                                                                                                                                                                                            • Shopping online for food
                                                                                                                                                                                                                                                                                              • Figure 79: Germany: percentage of all individuals purchasing online in the past 12 months, 2012-16
                                                                                                                                                                                                                                                                                            • Edeka launches same-day delivery via acquired platform
                                                                                                                                                                                                                                                                                              • Rewe growing its online sales
                                                                                                                                                                                                                                                                                                • Amazon Fresh finally lands in Germany
                                                                                                                                                                                                                                                                                                  • Kaufland delays expected expansion
                                                                                                                                                                                                                                                                                                    • The consumer – What you need to know
                                                                                                                                                                                                                                                                                                      • Women increasingly sharing responsibility
                                                                                                                                                                                                                                                                                                        • Store-based shopping continues to dominate
                                                                                                                                                                                                                                                                                                          • Lidl marginally ahead in a fragmented market
                                                                                                                                                                                                                                                                                                            • Checkout waiting times prove a bugbear to consumers
                                                                                                                                                                                                                                                                                                              • Who shops for groceries
                                                                                                                                                                                                                                                                                                                • Majority of consumers take full responsibility for grocery shopping
                                                                                                                                                                                                                                                                                                                  • Figure 80: Germany: responsibility for grocery shopping, September 2017
                                                                                                                                                                                                                                                                                                                • Women increasingly sharing responsibility for shopping
                                                                                                                                                                                                                                                                                                                  • Figure 81: Germany: who shops for groceries, by gender, September 2017
                                                                                                                                                                                                                                                                                                                • How they shop for groceries
                                                                                                                                                                                                                                                                                                                  • Store-based shopping dominates
                                                                                                                                                                                                                                                                                                                    • Figure 82: Germany: how they shop for groceries, September 2017
                                                                                                                                                                                                                                                                                                                  • Online penetration higher among men
                                                                                                                                                                                                                                                                                                                    • Figure 83: Germany: how they shop for groceries, by gender, September 2017
                                                                                                                                                                                                                                                                                                                  • Parents most likely to shop online
                                                                                                                                                                                                                                                                                                                    • Figure 84: Germany: how they shop for groceries, by parental status, September 2017
                                                                                                                                                                                                                                                                                                                  • Online grocery shopping appeals to the most affluent
                                                                                                                                                                                                                                                                                                                    • Figure 85: Germany: proportion doing any of their grocery shopping online (net), by household income, September 2017
                                                                                                                                                                                                                                                                                                                  • Where they shop for groceries
                                                                                                                                                                                                                                                                                                                    • Lidl marginally ahead in a fragmented market
                                                                                                                                                                                                                                                                                                                      • Figure 86: Germany: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                                                                                                                                    • Parents go to Kaufland
                                                                                                                                                                                                                                                                                                                      • Figure 87: Germany: grocery retailer where the most money is spent, by parental status, September 2017
                                                                                                                                                                                                                                                                                                                    • Lidl more popular with younger consumers than Aldi
                                                                                                                                                                                                                                                                                                                      • Figure 88: Germany: grocery retailer where the most money is spent, by age, September 2017
                                                                                                                                                                                                                                                                                                                    • Aldi proves more popular as a secondary shopping location
                                                                                                                                                                                                                                                                                                                      • Figure 89: Germany: grocery retailers used for top up shopping, September 2017
                                                                                                                                                                                                                                                                                                                    • German consumers like to shop around
                                                                                                                                                                                                                                                                                                                      • Figure 90: Germany: repertoire of grocery retailers used for top up shopping in a typical month, September 2017
                                                                                                                                                                                                                                                                                                                    • Factors to improve at grocery retailers
                                                                                                                                                                                                                                                                                                                      • Checkout waiting times a bugbear for German consumers
                                                                                                                                                                                                                                                                                                                        • Figure 91: Germany: factors to improve at grocery retailers, September 2017
                                                                                                                                                                                                                                                                                                                      • Lidl shoppers would like to see a loyalty scheme introduced
                                                                                                                                                                                                                                                                                                                        • Figure 92: Germany: factors to improve at grocery retailers, relative importance compared to the average, Lidl, September 2017
                                                                                                                                                                                                                                                                                                                      • Aldi shoppers want more information and faster checkout service
                                                                                                                                                                                                                                                                                                                        • Figure 93: Germany: factors to improve at grocery retailers, relative importance compared to the average, Aldi, September 2017
                                                                                                                                                                                                                                                                                                                      • Edeka shoppers want better stock availability
                                                                                                                                                                                                                                                                                                                        • Figure 94: Germany: factors to improve at grocery retailers, relative importance compared to the average, Edeka, September 2017
                                                                                                                                                                                                                                                                                                                      • Rewe shoppers want more organic products
                                                                                                                                                                                                                                                                                                                        • Figure 95: Germany: factors to improve at grocery retailers, relative importance compared to the average, Rewe, September 2017
                                                                                                                                                                                                                                                                                                                      • Kaufland shoppers want better navigation
                                                                                                                                                                                                                                                                                                                        • Figure 96: Germany: factors to improve at grocery retailers, relative importance compared to the average, Kaufland, September 2017
                                                                                                                                                                                                                                                                                                                      • Appendix – Data sources, abbreviations and supporting information
                                                                                                                                                                                                                                                                                                                        • Abbreviations
                                                                                                                                                                                                                                                                                                                          • Data sources
                                                                                                                                                                                                                                                                                                                            • STATISTISCHES BUNDESAMT – Wiesbaden
                                                                                                                                                                                                                                                                                                                              • EUROSTAT – Luxembourg
                                                                                                                                                                                                                                                                                                                                • BeVH - Berlin
                                                                                                                                                                                                                                                                                                                                • Italy

                                                                                                                                                                                                                                                                                                                                  • Overview
                                                                                                                                                                                                                                                                                                                                    • What you need to know
                                                                                                                                                                                                                                                                                                                                      • Areas covered in this report
                                                                                                                                                                                                                                                                                                                                        • Executive summary
                                                                                                                                                                                                                                                                                                                                          • The market
                                                                                                                                                                                                                                                                                                                                            • Spending and inflation
                                                                                                                                                                                                                                                                                                                                              • Figure 97: Italy: consumer spending on food, drink and tobacco (incl. VAT), annual growth, 2012-17
                                                                                                                                                                                                                                                                                                                                              • Figure 98: Italy: consumer prices* of food and drink, annual % change, January 2016-October 2017
                                                                                                                                                                                                                                                                                                                                            • Channels of distribution
                                                                                                                                                                                                                                                                                                                                              • Figure 99: Italy: estimated distribution of spending on food and beverages, 2016
                                                                                                                                                                                                                                                                                                                                            • Sector size and forecast
                                                                                                                                                                                                                                                                                                                                              • Figure 100: Italy: food retailers’ sales* versus all retailers’ sales* (excl. fuel), 2012-17
                                                                                                                                                                                                                                                                                                                                            • Leading players
                                                                                                                                                                                                                                                                                                                                              • Key metrics
                                                                                                                                                                                                                                                                                                                                                • Market shares
                                                                                                                                                                                                                                                                                                                                                  • Figure 101: Italy: leading grocers’ shares of all food retailers sales, 2016
                                                                                                                                                                                                                                                                                                                                                • Online
                                                                                                                                                                                                                                                                                                                                                  • Figure 102: Italy: oNLINE PURCHASING IN THE PAST 12 MONTHS, EUROPEAN COMPARISONS, 2016
                                                                                                                                                                                                                                                                                                                                                • The consumer
                                                                                                                                                                                                                                                                                                                                                  • Who shops for groceries
                                                                                                                                                                                                                                                                                                                                                    • Figure 103: Italy: who shops for groceries, by gender, September 2017
                                                                                                                                                                                                                                                                                                                                                  • How they shop for groceries
                                                                                                                                                                                                                                                                                                                                                    • Figure 104: Italy: how they shop for groceries, September 2017
                                                                                                                                                                                                                                                                                                                                                  • Where they shop for groceries
                                                                                                                                                                                                                                                                                                                                                    • Figure 105: Italy: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                                                                                                                                                                  • Factors to improve at grocery retailers
                                                                                                                                                                                                                                                                                                                                                    • Figure 106: Italy: factors to improve at grocery retailers, September 2017
                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                    • Issues and insights
                                                                                                                                                                                                                                                                                                                                                      • Is there room for another major discounter in Italy?
                                                                                                                                                                                                                                                                                                                                                        • The facts
                                                                                                                                                                                                                                                                                                                                                          • The implications
                                                                                                                                                                                                                                                                                                                                                            • Is it finally the time for online grocery to take off in Italy?
                                                                                                                                                                                                                                                                                                                                                              • The facts
                                                                                                                                                                                                                                                                                                                                                                • The implications
                                                                                                                                                                                                                                                                                                                                                                  • The market – What you need to know
                                                                                                                                                                                                                                                                                                                                                                    • Consumer spending drives GDP increase
                                                                                                                                                                                                                                                                                                                                                                      • Inflation almost negligible
                                                                                                                                                                                                                                                                                                                                                                        • Grocers take three-quarters of spending on food drink
                                                                                                                                                                                                                                                                                                                                                                          • Good growth in 2016 but not as high as the previous year
                                                                                                                                                                                                                                                                                                                                                                            • A return to slightly stronger growth is predicted
                                                                                                                                                                                                                                                                                                                                                                              • Spending and inflation
                                                                                                                                                                                                                                                                                                                                                                                • Italian economy is still weak
                                                                                                                                                                                                                                                                                                                                                                                  • Consumer spending drives GDP increases
                                                                                                                                                                                                                                                                                                                                                                                    • Figure 107: Italy: consumer spending on food, drink and tobacco (incl. VAT), 2012-17
                                                                                                                                                                                                                                                                                                                                                                                  • Inflation
                                                                                                                                                                                                                                                                                                                                                                                    • Figure 108: Italy: consumer prices * of food and drink, annual % change, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                    • Figure 109: Italy: consumer prices* of food and drink, annual % change, January 2016-October 2017
                                                                                                                                                                                                                                                                                                                                                                                  • Channels of distribution
                                                                                                                                                                                                                                                                                                                                                                                    • Figure 110: Italy: estimated distribution of spending on food and beverages, 2016
                                                                                                                                                                                                                                                                                                                                                                                    • Figure 111: Italy: estimated distribution of spending on food and beverages, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                  • Sector size and forecast
                                                                                                                                                                                                                                                                                                                                                                                    • 2016 growth good but not as high as the previous year
                                                                                                                                                                                                                                                                                                                                                                                      • Figure 112: Italy: food retailers, sales (excl. VAT), 2012-17
                                                                                                                                                                                                                                                                                                                                                                                      • Figure 113: Forecast food retailers, forecast sales (excl. VAT), 2017-22
                                                                                                                                                                                                                                                                                                                                                                                    • Leading players – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                      • Coop Italia maintains sales growth momentum
                                                                                                                                                                                                                                                                                                                                                                                        • Rivals enhance own brand and seek to develop improved online offers
                                                                                                                                                                                                                                                                                                                                                                                          • Coop Italia retains market leadership
                                                                                                                                                                                                                                                                                                                                                                                            • Online in Italy: Small and underdeveloped but bubbling under
                                                                                                                                                                                                                                                                                                                                                                                              • Leading players
                                                                                                                                                                                                                                                                                                                                                                                                • Coop Italia reasserts its position
                                                                                                                                                                                                                                                                                                                                                                                                  • Conad invests for growth
                                                                                                                                                                                                                                                                                                                                                                                                    • Selex growth outstrips its main rivals
                                                                                                                                                                                                                                                                                                                                                                                                      • Esselunga spreads its wings
                                                                                                                                                                                                                                                                                                                                                                                                        • Gruppo VéGé leaps ahead
                                                                                                                                                                                                                                                                                                                                                                                                          • Aldi still to open first store
                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 114: Italy: leading grocers, sales (excl. VAT), 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                          • Carrefour only major operator to shrink store estate
                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 115: Italy: leading grocers, outlets, 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 116: Italy: leading grocers, Sales per outlet, 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                          • Market shares
                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 117: Italy: leading grocers’ shares of all food retailers sales, 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                          • Online
                                                                                                                                                                                                                                                                                                                                                                                                            • The online sector as a whole
                                                                                                                                                                                                                                                                                                                                                                                                              • Online market size for food
                                                                                                                                                                                                                                                                                                                                                                                                                • Shopping online for food
                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 118: Italy: percentage of all individuals purchasing online in the past 12 months, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 119: Italy: oNLINE PURCHASING IN THE PAST 12 MONTHS, EUROPEAN COMPARISONS, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                • Leading online players
                                                                                                                                                                                                                                                                                                                                                                                                                  • Organisation structure can be a barrier to e-commerce delivery
                                                                                                                                                                                                                                                                                                                                                                                                                    • Conad unconvinced about online grocery
                                                                                                                                                                                                                                                                                                                                                                                                                      • Amazon trying to secure a slice of online grocery business
                                                                                                                                                                                                                                                                                                                                                                                                                        • The consumer – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                          • Responsibility falls on female consumers
                                                                                                                                                                                                                                                                                                                                                                                                                            • Consumers still reluctant to embrace online
                                                                                                                                                                                                                                                                                                                                                                                                                              • Coop Italia still the most popular primary shopping destination
                                                                                                                                                                                                                                                                                                                                                                                                                                • Consumers want to see fresh food improvements
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Who shops for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                    • More than half responsible for grocery shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 120: Italy: who shops for groceries, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Gender divide remains
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 121: Italy: who shops for groceries, by gender, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                    • How they shop for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Most still shop in-store
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 122: Italy: how they shop for groceries, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                      • 35-44s drive online purchasing
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 123: Italy: how they shop for groceries, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Grocery shopping habits – Consumers are looking for a bargain
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 124: Italy: grocery shopping habits, Q4 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Where they shop for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                        • More people spend most with the Coop
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 125: Italy: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                        • A&O attracts a young shopper
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 126: Italy: grocery retailer they spend the most with, by average age and income, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Lidl also a popular choice
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 127: Italy: grocery retailers used for top up shopping, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Half of consumers are loyal to one retailer
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 128: Italy: repertoire of grocery retailers used for top up shopping in a typical month, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Esselunga’s online offer stands out
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 129: Italy: how they shop for groceries, by main retailer used, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                        • Factors to improve at grocery retailers
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Most want better quality fresh food
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 130: Italy: factors to improve at grocery retailers, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Provenance is also important
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 131: Italy: factors to improve at grocery retailers, by rank, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Lidl shoppers want a loyalty scheme
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 132: Italy: factors to improve at grocery retailers, by main retailer, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Appendix – Data sources, abbreviations and supporting information
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Abbreviations
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Data sources
                                                                                                                                                                                                                                                                                                                                                                                                                                                • INSTITUTO CENTRALE DI STATISTICA (ISTAT) – Rome
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • EUROSTAT – Luxembourg
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • PIANETA DISTRIBUZIONI, a report produce by Largo Consumo
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Spain

                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Overview
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Areas covered in this report
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Executive summary
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • The market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Consumer spending
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 133: Spain: annual % change in consumer spending, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Inflation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 134: Spain: consumer prices of food and drink, annual % change, Jan 2016-Sept 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Channels of distribution
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 135: Spain: estimated distribution of spending on food, drink and tobacco, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Sector size and forecast
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Leading players
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Key metrics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Market shares
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 136: Spain: leading grocers’ shares of all food retailers’ sales, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 137: Spain: online sales by product category and type of retailer, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The consumer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Who shops for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 138: Spain: who is responsible for grocery shopping, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • How they shop for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 139: Spain: how they shop for groceries, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Where they shop for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 140: Spain: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 141: Spain: other grocery retailers used in Spain, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Factors to improve at grocery retailers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 142: Spain: what consumers would like to see improved at the grocery retailer they spend most money with, based on any rank, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Issues and insights
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • How are retailers adapting to changing shopping habits?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • The facts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • The implications
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • What are the opportunities for driving sales?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • The facts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The implications
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The market – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spending on food and drink grows
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Inflation rises in 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Grocers account for 75% of the total market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Growth of food specialists outpacing grocers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Sales at food retailers to reach €115.7 billion by 2022
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Spending and inflation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The economy in Spain
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Consumer spending on food and drink
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 143: Spain: consumer spending on food, drink and tobacco (incl. VAT), 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Inflation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 144: Spain: consumer prices of food and drink, annual % change, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 145: Spain: consumer prices of food and drink, annual % change, Jan 2016-Sept 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Channels of distribution
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Grocers account for 75% of the total market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 146: Spain: estimated distribution of spending on food, drink and tobacco, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Sector size and forecast
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Growth of food specialists outpacing grocers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 147: Spain: food retailers, sales (excl. VAT), 2013-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Sales at food retailers to reach €115.7 billion by 2022
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 148: Spain: food retailers, forecast sales (excl. VAT), 2017-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Leading players – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Mercadona leads the market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Increase in convenience store formats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Discounter Lidl grows market share
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Online grocery retailing is still underdeveloped
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Leading players
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Mercadona grows revenue by 3.8%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Increase in convenience store formats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Discounters expand
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 149: Spain: leading grocers, sales (excl VAT), 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 150: Spain: leading grocers, outlets, 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 151: Spain: leading grocers, sales per outlet, 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Market shares
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 152: Spain: leading grocers’ shares of all food retailers’ sales, 2014-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Online retailing in Spain
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 153: Spain: online sales by product category and type of retailer, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Shopping online for food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 154: Spain: percentage of all individuals purchasing online in the past 12 months, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 155: Spain: online purchasing, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 156: Europe: percentage of all individuals purchasing online in the past 12 months, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Leading players in online grocery retailing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Amazon launches Amazon Pantry in Spain
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The consumer – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Women do most of the grocery shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Most shop in-store for food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Mercadona remains the most popular
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Lidl increases in popularity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Quality of fresh foods is main improvement wanted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Demand for better loyalty schemes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Who shops for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 157: Spain: who is responsible for grocery shopping, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Women do most of the grocery shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 158: Spain: who is responsible for grocery shopping, by gender, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Gender gap is greater among older people
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 159: Spain: consumers mainly/wholly responsible for grocery shopping, by gender and age group, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • How they shop for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Most shop in-store for food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 160: Spain: how they shop for groceries, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 161: Spain: how they shop for groceries, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Carrefour shoppers most likely to shop online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 162: Spain: how they shop for groceries by main retailer shopped at, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Where they shop for groceries
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Mercadona remains the most popular
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 163: Spain: grocery retailers where the most money is spent, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retailer by age and income
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 164: Spain: grocery retailers where the most money is spent, by average age and income, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Lidl increases in popularity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 165: Spain: grocery retailers used for top up shopping, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Spaniards shop at few retailers for food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 166: Spain: repertoire of grocery retailers used for top up shopping, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Factors to improve at grocery retailers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Quality of fresh foods is main improvement wanted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 167: Spain: factors that consumers would like to see improved at the grocery retailers they spend most money with, based on any rank, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Demand for better loyalty schemes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 168: Spain: factors ranked first that consumers would like to see improved at the grocery retailers they spend most money with, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Demand for Carrefour to improve customer service
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 169: Spain: factors to improve at grocery retailers, relative importance compared to the average, Mercadona and Carrefour, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Appendix – Data sources, abbreviations and supporting information
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Abbreviations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Data sources
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • INSTITUTO NACIONAL DE ESTADISTICA (INE) – Madrid
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • EUROSTAT – Luxembourg
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Comisión Nacional de los Mercados y la Competencia
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • UK

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Overview
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Products covered in this Report
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Executive summary
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Real incomes now falling
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 170: Real incomes: CPIH versus annual weekly earnings (excluding bonuses) Jan 2014-Oct 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Consumer spending on food and drink accelerates
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Grocery retail sales return to more substantial growth
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 171: All food retail sales (incl. VAT), 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Supermarkets sales also expected to return to growth…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 172: Supermarkets’ market size and forecast (incl. VAT), 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • …but are likely to continue to lose share of spending
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 173: Estimated channels of distribution for grocery retail sales, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Leading retailers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Tesco remains the dominant player
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 174: Leading grocery retailers: share of all grocery retail sales, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Aldi and Lidl continue to gain ground
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Tesco continues to recover its brand image
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 175: Attitudes towards and usage of selected brands, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The consumer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Levels of top-up shopping continue to rise
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 176: Grocery shopping behaviour, September 2015-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • A majority continue to spend the most in supermarkets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 177: Types of stores where consumers spend the most, September 2016 and 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Meal planning influences shopping behaviour
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 178: How grocery shoppers plan meals in advance, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Tesco the most used retailer in the UK
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 179: Grocery retailers used for primary and secondary shops, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Nine in ten supermarket shoppers purchase non-foods
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 180: Types of non-foods purchased in supermarkets, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Consumers have noticed price rises
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 181: Attitudes to pricing and trading down, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Issues and insights
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • This season’s must have accessory: wholesale
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The facts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • The implications
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Trading up/down/sideways: What falling real incomes could mean for the sector
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • The facts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The implications
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Amazon and Whole Foods: for now file under ‘potential’
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The facts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The implications
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The market – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Inflation continues to grow…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • …meaning real incomes are now falling
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Consumer spending on food and drink accelerates
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Grocery retail sales return to more substantial growth
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Supermarkets sales also expected to return to growth…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • …but are likely to continue to lose share of spending
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Market drivers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Inflation rises
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 182: Food and drink inflation, 2012-October17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Consumer spending power falls
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 183: Average weekly earnings by consumer price index, Jan 2014-Sep 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Consumer confidence has taken a hit but is holding up overall
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 184: Consumer confidence: current financial situation vs sentiment for the coming year, Jan 2014-Sep 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Private renting increases
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 185: UK household tenure status, 2011-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Consumer spending on food and drink
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 186: Consumer spending on core food and drink categories, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spending on food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 187: Annual % change in the value, volume and prices in the food category, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • How food spending breaks down
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 188: Composition of consumer spending on food, categories as a % of total spending, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spending on non-alcoholic drinks
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 189: Annual % change in the value, volume and prices in the non-alcoholic beverages category, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spending on alcoholic drinks
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 190: Annual % change in the value, volume and prices in the alcoholic beverages category, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 191: Composition of consumer spending on alcoholic drinks, categories as a % of total spending, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Sector size and forecast
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Grocery sector returns to strong growth driven by inflation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 192: All food retail sales (incl. VAT), 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 193: All food retail sales, market size and forecast, 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Supermarket sector predicted to return to growth…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 194: Supermarkets’ market size and forecast (incl. VAT), 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 195: Supermarkets: market size and forecast (incl. VAT), 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • …but are likely to continue to lose share in the short term
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 196: Estimated percentage of grocer sector sales accounted for by supermarkets, 2012-22
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Forecast methodology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Channels of distribution
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Supermarkets account for over half of all grocery retail sales
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 197: Estimated channels of distribution for grocery retail sales, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • However supermarkets are increasingly sharing consumer baskets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 198: Estimated breakdown of sector sales, by channel, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The consumer – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Levels of top-up shopping continue to rise
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • A majority continue to spend the most in supermarkets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Meal planning influences shopping behaviour
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Tesco the most used retailer in the UK
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Nine in ten supermarket shoppers purchase non-foods
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Consumers have noticed price rises
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Traditional loyalty schemes still hold significance for shoppers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • How they shop
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Nine in ten are responsible for grocery shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 199: Who is responsible for grocery shopping in the household, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Grocery shopping habits are becoming more fluid
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 200: Grocery shopping behaviour, September 2015-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Younger consumers more likely to do a singular main shop
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 201: Shopping behaviour by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • However such behaviours are not static
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 202: Mintel’s Grocery Tracker: shopping behaviour March 2016-June 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Types of stores used
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Over half of grocery shoppers still spend the most in supermarkets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 203: Types of stores where consumers spend the most, September 2016-2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Who spends the most in supermarkets?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 204: Types of stores where consumers spend the most, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 205: Types of stores where consumers spend the most, by parental status, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 206: Types of stores where consumers spend the most, by type of area lived in, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The influence of family on shopping habits
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 207: Parental influence on grocery shopping, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The impact of planning and eating out
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Most do some form of meal planning
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 208: How grocery shoppers plan meals in advance, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 209: How grocery shoppers plan meals in advance, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • How does meal planning affect grocery shopping behaviour?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 210: How grocery shoppers plan meals in advance, by grocery shopping behaviour, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Just under a third eat out or have a takeaway for dinner at least once a week
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 211: Frequency of eating out, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 212: Frequency of eating out, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • How does eating out affect shopping behaviours?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 213: Frequency of eating out, by grocery shopping behaviour, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retailers used
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Tesco the UK’s most visited grocery retailer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 214: Grocery retailers used, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 215: Trend of grocery retailers used, September 2015 -2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Tesco’s success is borne out of capturing both main and secondary shops
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 216: Grocery retailers used for primary and secondary shops, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Less than one in ten shop with one retailer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 217: Repertoire of secondary retailers used, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Asda shoppers most likely to do a secondary shop at the discounters
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 218: Where leading retailers’ primary shoppers also shop, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retailer demographic comparison
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Tesco attracts the highest level of young secondary shoppers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 219: Leading grocery retailers used for primary and secondary shops, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 220: The discounters: primary and secondary shoppers, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Tesco and Sainsbury’s picking up secondary use in urban areas
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 221: Leading grocery retailers used for primary and secondary shops, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Tesco and Sainsbury’s strongest in the capital
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 222: Leading retailers’ primary shoppers, by region lived in, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 223: Leading retailers’ secondary shoppers, by region lived in, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Asda strong in the lower socio-economic groups
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 224: Leading grocery retailers used for primary and secondary shops, by socio-economic group, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 225: Aldi and Lidl, primary and secondary grocery shoppers, by socio-economic group, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Non-foods in supermarkets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Health and beauty the most popular non-food category
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 226: Types of non-foods purchased in supermarkets, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Clothing purchasing peaks amongst Asda shoppers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 227: Types of non-foods purchased in supermarkets, by retailer where the most money is spent in a typical month, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Consumers tend to favour a few categories
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 228: Types of non-foods purchased in supermarkets, repertoire analysis, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Non-food products and services seen as time-saving and convenient
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 229: Attitudes to non-foods in supermarkets, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Young consumers more likely to be swayed by non-food range
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 230: Types of non-foods purchased in supermarkets, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Attitudes to prices and loyalty schemes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Consumers have noticed price increases
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 231: Attitudes to pricing and trading down, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Older consumers most likely to have noticed price increases
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 232: Agreement to statements about pricing and trading down, by age, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • A move to own-brand?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 233: Mintel Grocery Tracker: attitudes to own v private label, March 2016-Sep 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Loyalty schemes
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 234: Attitudes to loyalty schemes, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 235: Agreement to statements around loyalty schemes, by retailer with who the most money is spent in a typical month, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Leading retailers – What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Tesco is still the dominant player
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Aldi and Lidl continue to gain ground
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Tesco continues to recover its brand image
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Almost half of consumers do some shopping online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Checkout free grocery
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Leading grocery retailers – Key metrics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • 2016 sees a return to growth for (most of) the leading players
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 236: Leading grocery retailers: net sales, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Consolidation amongst the symbol groups
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 237: Leading grocery retailers: store numbers, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 238: Leading grocery retailers: annual sales per outlet, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Sales area and densities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 239: Leading grocery retailers: total sales area, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 240: Leading grocery retailers: annual sales per sq m, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Operating profits and margins
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 241: Leading grocery retailers: operating profits, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 242: Leading grocery retailers: operating margins, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Market share
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Tesco is the market leader
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 243: Leading grocery retailers: share of all grocery retail sales, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 244: Leading grocery retailers: share of all grocery retail sales, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Could Aldi crack the top four?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 245: Market shares: The Big Four grocery multiples vs the discounters, 2010-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • A note on our market share
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Space allocation summary
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Summary data and classifications
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 246: Food, non-food standard classifications, 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Convenience comparison overview
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 247: UK leading food retailers’ hypermarket store format: convenience comparison overview split, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 248: UK leading food retailers’ superstore format: convenience comparison overview split, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 249: UK leading food retailers’ smaller supermarkets and discounters: Convenience comparison overview split, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Detailed convenience comparison split
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 250: UK leading food retailers’ hypermarket store format: convenience comparison detailed split, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 251: UK leading food retailers’ superstore format: convenience comparison detailed split, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 252: UK leading food retailers’ smaller supermarkets and discounters: convenience comparison detailed split, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Food and drink categories split
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 253: UK leading food retailers: food and drink categories as a percentage of total space allocated to food and drink, November 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail product mix
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 254: Leading food retailers, estimated sales mix, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 255: Leading food retailers: category sales as % total sales, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 256: Leading food retailers, sales density by broad category, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 257: Leading food retailers: estimated share of key product markets, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Brand research
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What you need to know
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Brand map
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 258: Attitudes towards and usage of selected brands, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Key brand metrics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 259: Key metrics for selected brands, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Brand attitudes: Aldi and Lidl lead perceptions of offering good value
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 260: Attitudes, by brand, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Brand personality: Still work to do for the Co-op to change perceptions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 261: Brand personality – Macro image, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • The big four trade on being reliable and accessible
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 262: Brand personality – Micro image, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Brand analysis
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Tesco
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Sainsbury’s
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Asda
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Morrisons
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Aldi
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The Co-op
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Lidl
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • M&S Simply Food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Iceland
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Waitrose
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Ocado
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Amazon and Whole Foods
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Over half do online grocery shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 263: Usage of online grocery shopping, December 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Online grocery is only around 6% of total sector sales
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 264: Estimated breakdown of sector sales, by channel, 2012-17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Delivery passes on the rise
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 265: Ownership of delivery passes, December 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Tesco is the dominant online player but losing market share
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 266: Leading online grocery retailers’ estimated market shares, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Launch activity and innovation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Checkout-free grocery shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Speedy delivery services
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Voice-controlled devices that can order grocery items for direct delivery to your home
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Driverless grocery delivery
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • New grocery store with a unique, artisan-style twist on the traditional supermarket experience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Zero waste supermarkets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Sainsbury’s capitalising on the revival in interest in vinyl
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Grab & Go van to save them time and effort travelling to a store
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Advertising and marketing activity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • 2016 total advertising spend declined 5.8% year-on-year
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 267: Recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarket and online grocers, 2013-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Asda toppled by Lidl as the leading advertiser by spend
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 268: Recorded above-the-line, online display and direct mail total advertising expenditure by leading UK supermarket and online grocers, 2013-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Advertising spend peaks around Easter and in the month leading up to Christmas
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 269: Recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarket and online grocers, by month, 2015-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • TV accounted for the lion’s share of spend in 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 270: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarkets and online grocers, 2013-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What we’ve seen so far in 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Nielsen Ad Intel coverage
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Ahold Delhaize

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • A good fit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Local brands at core of company strategy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 271: Ahold Delhaize: group financial performance*, 2015-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 272: Ahold Delhaize: outlet data*, 2015-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Aldi

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The key markets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Germany
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • UK
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • US
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Australia
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Further expansion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 273: Aldi: estimated group sales performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 274: Aldi: number of outlets, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Asda Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Toyou drives footfall into stores
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Lack of significant convenience presence could be an issue
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Better solution may be to push hard on online development
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • A deal on the horizon?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Cost-cutting on the agenda
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 275: Asda Group Ltd: group financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 276: Asda Group Ltd: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Auchan

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Single brand simplifies relationship with customers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Selling off non-core businesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Stronger buying links with Système U but closer relationship ruled out
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • An expanding presence in Eastern Europe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 277: Auchan: group financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 278: Auchan: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Carrefour

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • A new boss, a new plan
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Core strength in food growing strongly
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Expanding convenience formats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Online evolving
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Group
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • France
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Rest of Europe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 279: Carrefour: group financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 280: Carrefour: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 281: Carrefour (Europe): outlet numbers, 2013-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 282: Carrefour: store numbers by country, 2015-16 (at December)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 283: Carrefour: European hypermarket numbers (directly operated stores only), 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 284: Carrefour: European supermarket numbers (directly operated stores only, 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 285: Carrefour: European c-store numbers (directly operated stores only), 2016
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Casino

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Enhanced discount shopping experience fuelling growth at Leader Price
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Hypermarkets focusing on food and cutting back on non-food retail space
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Supermarkets improve fresh food offering and multichannel capability
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Longer opening hours, new loyalty card and more delivery options boost Monoprix
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Evolving ‘Mandarine’ store format driving sales at ultra-convenient chain Franprix
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Other convenience banners upgrading their offering and introducing new concepts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Quickening the checkout process across its retail brands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 286: Casino: group financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 287: Casino (France): outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • The Co-operative Food

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • £137.5 million bid for wholesale group Nisa
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • IT investment transforming the store experience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Rolling out local sourcing programme nationwide
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Healthier food options
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Bolstering eco credentials
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 288: The Co-operative Food: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 289: The Co-operative Food: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Dia

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Store remodelling programme
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Greater focus on gourmet foods
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Focus on online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Investment in international
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 290: Dia: group financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 291: Dia: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 292: Dia: store formats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Edeka Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Same-day grocery delivery service
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • New convenience store concept
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Convenient grocery delivery fulfilment option
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Edeka expanding into the drugstore market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Netto Marken-Discount responding to consumers’ food provenance concerns
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 293: Edeka Group: food retail sales performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 294: Edeka Group: food retail outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • E Leclerc

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • A trailblazer on price
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Leader in the Drive format
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 295: E Leclerc: estimated group sales performance, excl. VAT, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 296: E Leclerc: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Iceland Foods

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • New concept stores continue to be rolled out
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Quality focus for products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Loyalty programme to move to existing payment cards
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 297: Iceland Foods Ltd: group financial performance, 2012/113-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 298: Iceland Foods Ltd: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Jerónimo Martins

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Pingo Doce focused on own brand development to maintain price competitiveness
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Store improvements helping grow Pingo Doce sales
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • New pre-ordered meal solutions service for time-pressed households
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • New Biedronka deli concept sparks rumours of a push into convenience grocery retail
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Self-service Biedronka outlets to reduce checkout queuing times
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Biedronka promoting good health through sportswear launch and reformulated food products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Biedronka expanded non-food offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Biedronka bolstering its appeal as a retail destination for cosmetics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 299: Jerónimo Martins: group financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 300: Jerónimo Martins: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Marks & Spencer (UK Food)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Delivery and convenience prioritised
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Sushi counters
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Plan A 2025 – A new sustainability and eco focus
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 301: Marks & Spencer (UK Food): group sales performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 302: Marks & Spencer (UK Food): food outlets, by format, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 303: Marks & Spencer (UK Food): outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Mercadona

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Growing importance in the world of beauty
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Continuing to invest in its store network
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Focus on fresh products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • International expansion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 304: Mercadona: group financial performance, excl. VAT, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 305: Mercadona: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Wm Morrison Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • ‘Fresh look’ supermarket format driving store sales growth
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Re-entry into the convenience market
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Responding to consumer demand for more locally sourced food and drink products
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • New store-pick online service extends home delivery reach
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Expanded online product offering boosting e-commerce sales
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Own-label push to combat food price inflation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • First womenswear range
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Cutting food waste
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 306: Wm Morrison Group: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 307: Wm Morrison Group: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Les Mousquetaires (Intermarché)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • A new strategy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Overhaul of private label
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Digitalisation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Netto doing well
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 308: Les Mousquetaires: grocery operations – Estimated sales performance, 2013-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 309: Les Mousquetaires: grocery outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 310: France: customer profile of consumers using Intermarché for their main shop, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Ocado Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Waitrose sourcing agreement has positives and negatives
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • No guarantee that Waitrose will terminate…
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • …but the implications for Ocado if it does
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Broadening the customer base
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Diversifying into new sectors
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 311: Ocado Group plc: group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 312: Ocado Group plc: key performance metrics, 2012/13-2015/16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Real

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • New Markthalle Krefeld store concept success
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • New buying alliance will bring extended product range and lower prices
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Integration of Hitmeister expands online product offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Preparing to roll out a nationwide grocery home delivery service
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Considering roll-out of click-and-collect across its entire store network
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Voice-controlled shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 313: Real: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 314: Real: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Rewe

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Clearer strategy emerges for international operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Exploiting convenience
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Going local
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The natural way
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Online plans
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 315: Rewe: group* financial performance, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 316: Rewe: outlet data, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • J Sainsbury (UK)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Looking to drive synergies from the Home Retail Group deal
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Pushing ahead with online innovations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Keeping a lid on costs
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 317: J Sainsbury (UK)*: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 318: J Sainsbury (UK): outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Schwarz Group (Lidl)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Lidl lands in the US
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Further expansion
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Lidl goes on the attack in Germany
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Further gains in the UK
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Embracing technology
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Lidl bets big on clothing
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 319: Esmara by Heidi Klum at Lidl UK, September 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Online operations at early stages of development
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 320: Schwarz Group: group sales performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Figure 321: Schwarz Group: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Spar International

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Capitalising on smaller, more frequent food shopping
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Modernisation of larger stores
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • New health store concept to meet the demands of health-conscious consumers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • E-commerce solutions to make shopping as convenient as possible
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Food waste scheme prompts positive response
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 322: Spar International: Western Europe and Central & Eastern Europe retail sales, by country, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 323: Spar International: Western Europe and Central & Eastern Europe outlets, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 324: Spar International: Western Europe and Central & Eastern Europe retail sales area, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Figure 325: Spar International: Western Europe and Central & Eastern Europe sales per sq m, by country, 2012-16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Tesco

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • The turnaround
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Booker
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Logic behind the deal
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • A consumer downturn?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Fraud Squad investigation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Full year 2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 326: Tesco: sales growth by country in local currency terms, 2015/16-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • First half 2017/18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Figure 327: Tesco: first half sales growth by country in local currency terms, H1 2016/17-H1 2017/18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Online
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Tesco Bank
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • The balance sheet
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 328: Tesco Plc: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 329: Tesco UK: like-for-like sales growth by format, Q1 and Q2 2017/18
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 330: Tesco: UK store space by format, 2017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 331: Tesco Plc: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Waitrose

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Store sales decline forces shift in focus
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Prioritising footfall and loyalty over profit
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Foodservice and click-and-collect drive footfall
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • What next?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 332: Waitrose: group financial performance, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 333: Waitrose: outlet data, 2012/13-2016/17
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Supermarkets - Europe - November 2017

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        US $3,843.69 (Excl.Tax)