Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

UK Supermarkets market report

"Supermarkets remain the dominant sector within the wider grocery market but continue to lose market share. This is as much to do with increased choice in the market and demographic shifts as it is the fault of supermarket operators. However, there is a need to redefine what a supermarket can offer grocery shoppers and give them further reasons to visit when faced with greater, and often more convenient, options in the market."
- Nick Carroll, Senior Retail Analyst

This report examines the following areas:

  • Will Brexit cause a greater focus on sourcing?
  • Own-brand: more important than ever?
  • Non-foods: an increasingly competitive battleground

There is a need for supermarkets to redefine their place in the market. All the leading players have been attempting to do this and the common consensus, when you look broadly at their strategies, seems to be to give consumers more reasons to visit, through partnerships with other retailers, high-quality in-store dining and other service-based options. This seems to be a solid strategy but you have to ask will it be enough to stem the tide? In truth it is likely to come down to the quality of in-store mix; it is notable that Sainsbury's felt it necessary to purchase one of the largest non-store operators in the industry rather than continue to build its own general merchandise (GM) offering.

Based on the current state of play, we expect the supermarket sector to return to growth in 2017 but much of this will be inflation-driven, and growth will continue to be under that of the wider market. This will mean further sector share losses, albeit at a lesser and more stable rate than has been seen in the past five years. A downturn in the economy may see footfall at supermarkets increase once more, as consumers look to trade down and rein in spending, but in comparison to the beginning of the last recession supermarkets now have a far more mature discount sector to contend with.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Confidence: bouncing back following Brexit
              • Record deflation in the food categories but price rises imminent
                • Figure 1: Food and drink inflation, 2011-16
              • Consumer spending on food takes a dive
                • Figure 2: Annual % change in the value, volume and prices in the food category, 2011-15
              • Supermarkets’ sales falling but positive growth on the horizon
                • Figure 3: Supermarkets market size (inc. VAT), 2011-21
              • Increased choice has chipped away at sector share
                • Figure 4: Estimated breakdown of sector sales, by channel, 2011-16
              • Leading players
                • The big four continue to lose market share
                  • Figure 5: Leading grocery retailers: Share of sector sales, 2015
                • Continued growth in online could hurt supermarkets
                  • Figure 6: Leading online grocery retailers’ estimated market shares (excluding VAT), 2015
                • Morrisons and Waitrose lead on fresh food allocation
                  • Figure 7: UK leading food retailers: food and drink categories as a percentage of total space allocated to food and drink, October 2016
                • Improved levels of trust at Tesco, Sainsbury’s and Morrisons
                  • Figure 8: Attitudes towards and usage of selected brands, October and January 2016
                • The consumer
                  • Most shop multiple times per week
                    • Figure 9: Frequency of grocery shopping, September 2016
                  • Most still spend the most in supermarkets
                    • Figure 7: Formats where the most money is spent in a typical month, September 2016
                  • Tesco the dominant player
                    • Figure 8: Primary and secondary usage by grocery, retailer used, September 2016
                  • Why they shop in supermarkets…
                    • Figure 9: Why they spend the most in supermarkets, September 2016
                  • …and why they don’t
                    • Figure 10: Why they do not spend the most in supermarkets, September 2016
                  • Availability a core concern for supermarket shoppers
                    • Figure 11: Areas that supermarkets shoppers would like to see improved, any rank, September 2016
                  • Shoppers in favour of the move to EDLP
                    • Figure 12: Attitudes towards pricing and promotions, September 2016
                  • Own-brand the differentiator
                    • Figure 13: Attitudes towards range reduction and own-brand, September 2016
                  • Brexit is likely to place greater scrutiny on sourcing
                    • Figure 14: Attitudes towards sourcing and the effect of Brexit, September 2016
                  • What we think
                  • Issues and Insights

                    • Will Brexit cause a greater focus on sourcing?
                      • The facts
                        • The implications
                          • Own-brand: more important than ever?
                            • The facts
                              • The implications
                                • Non-foods: an increasingly competitive battleground
                                  • The facts
                                    • The implications
                                    • The Market – What You Need to Know

                                      • Confidence rising steadily
                                        • Deflation persists but price rises on the horizon
                                          • Consumer spending on food and drink falls in 2015
                                            • Supermarkets sector continues to see sales decline
                                              • Supermarkets have lost sector share consistently since 2011
                                              • Market Drivers

                                                • Consumer confidence rises steadily
                                                  • Figure 15: Consumer confidence: Current financial situation vs sentiment for the coming year, January 2014-September 2016
                                                • Inflation remains low
                                                  • Figure 16: Food and drink inflation, 2011-16
                                                • Growth in the number of convenience stores
                                                  • Figure 17: Store numbers of the leading convenience operators, by operation, 2011-15
                                                • Growth in other channels
                                                  • Figure 18: Market size for online grocery retailing and discounter grocers, 2011-16
                                                • Consumers prepared for increasing cost of living
                                                    • Figure 19: Consumer views on the impact of Brexit, July 2016
                                                  • Private renting increases
                                                    • Figure 20: UK household tenure status, 2011-15
                                                • Consumer Spending on Food and Drink

                                                      • Figure 21: Consumer spending on core food and drink categories, 2011-16
                                                    • Spending on food
                                                      • Figure 22: Annual % change in the value, volume and prices in the food category, 2011-15
                                                    • How food spending breaks down
                                                      • Figure 23: Composition of consumer spending on food, categories as a % of total spending, 2012-15
                                                    • Spending on non-alcoholic drinks
                                                        • Figure 24: Annual % change in the value, volume and prices in the non-alcoholic beverages category, 2011-15
                                                      • Spending on alcoholic drinks
                                                        • Figure 25: Annual % change in the value, volume and prices in the alcoholic beverages category, 2011-15
                                                        • Figure 26: Composition of consumer spending on alcoholic drinks, categories as a % of total spending, 2012-15
                                                    • Sector Size and Forecast

                                                        • Sector sales slowed by deflation
                                                          • Figure 27: All food retail sales (inc. VAT), 2011-21
                                                          • Figure 28: All food retail sales, 2011-21
                                                        • Supermarkets’ sales fall once more in 2015
                                                          • Figure 29: Supermarkets’ market size and forecast (inc. VAT), 2011-21
                                                          • Figure 30: Supermarkets: market size and forecast (inc. VAT), 2011-21
                                                        • Supermarket share predicted to continue to fall
                                                          • Figure 31: Percentage of grocer sector sales accounted for by supermarkets, 2011-21
                                                        • The impact of the EU referendum vote on the grocery sector
                                                          • The grocery sector has been resilient in previous slowdowns
                                                            • Figure 32: Alternative market scenarios for the post-Brexit grocery sector, at current prices, 2016-21
                                                            • Figure 33: Detailed post-Brexit scenarios for the grocery sector, at current prices, 2016-21
                                                          • The grocery sector is more insulated from economic slowdown than other sectors
                                                            • The effect on supermarkets
                                                              • Same again?
                                                                • Forecast methodology
                                                                  • Changes in methodology
                                                                  • Channels of Distribution

                                                                    • Despite falling share, supermarkets remain the dominant force
                                                                      • Figure 34: Estimated channels of distribution for grocery retail sales, 2015
                                                                      • Figure 35: Estimated breakdown of sector sales, by channel, 2011-16
                                                                  • The Consumer – What You Need to Know

                                                                    • The majority shop multiple times per week
                                                                      • Many still spend the most in supermarkets
                                                                        • Tesco is the dominant player
                                                                          • Historical strengths remain but increased choice is hurting supermarkets
                                                                            • Availability a core concern for supermarket shoppers
                                                                              • Shoppers in favour of the move to EDLP
                                                                                • Brexit is likely to place greater scrutiny on sourcing
                                                                                • How They Shop

                                                                                  • Who does the shopping
                                                                                    • Figure 36: Who is responsible for grocery shopping, September 2016
                                                                                  • Most combine a main shop with a top-up
                                                                                    • Figure 37: Grocery shopping behaviours, September 2016
                                                                                  • Older consumers more likely to shop purely on a top-up basis
                                                                                    • Figure 38: Grocery shopping behaviours, by age, September 2016
                                                                                  • Frequency of shop
                                                                                    • Figure 39: Frequency of grocery shopping, September 2016
                                                                                  • Changing definition of what constitutes a main shop
                                                                                    • Figure 40: Frequency of shop, by shopping behaviour, September 2016
                                                                                  • Age affects shopping frequency…
                                                                                    • Figure 41: Frequency of shop, by age, September 2016
                                                                                  • …as does the area lived in
                                                                                    • Figure 42: Frequency of shop, by area lived in, September 2016
                                                                                • Where They Shop

                                                                                  • Despite falling market share the majority spend the most in supermarkets
                                                                                    • Figure 43: Formats where the most money is spent in a typical month, September 2016
                                                                                  • Younger consumers more likely to look elsewhere
                                                                                    • Figure 44: Formats where the most money is spent in a typical month, by age, September 2016
                                                                                  • Discounters have made up the most ground in the North
                                                                                    • Figure 45: Format where the most money is spent, by region, September 2016
                                                                                  • Top-ups taking away market share
                                                                                    • Figure 46: Formats where the most money is spent in a typical month, by frequency of shop, September 2016
                                                                                • Which Retailers Do They Use?

                                                                                    • Tesco out in front
                                                                                      • Figure 47: Total grocery retailer usage, September 2016
                                                                                    • Tesco also grabs the most primary shops
                                                                                      • Figure 48: Primary and secondary usage, by grocery retailer used, September 2016
                                                                                    • Main shop trend: Asda losing shoppers fast
                                                                                      • Figure 49: Retailer spent most money with, trend data, 2013-16
                                                                                    • Secondary shop trend: small changes
                                                                                      • Figure 50: Secondary usage, by grocery retailer used, 2015 and 2016
                                                                                    • Discounters taking more secondary shops from Asda and Morrisons
                                                                                      • Figure 51: Where leading players’ primary shoppers also shop, September 2016
                                                                                    • Shopper profiles: primary shoppers
                                                                                      • Figure 52: Retailers used for primary shops, by average age and socio-economic group, September 2016
                                                                                      • Figure 53: Retailers’ primary shoppers, by region lived in, September 2016
                                                                                    • Shopper profiles: secondary shoppers
                                                                                      • Figure 54: Retailers used for secondary shops, by average age and socio-economic group, September 2016
                                                                                      • Figure 55: Retailers used for secondary shops, by region lived in, September 2016
                                                                                      • Figure 56: Retailers used for secondary shops, by region lived in, September 2016
                                                                                    • Repertoire of secondary shops
                                                                                      • Figure 57: Number of retailers used for secondary shops, September 2016
                                                                                  • Why They Do (and Do Not) Spend the Most in Supermarkets

                                                                                      • Historical strengths ring true for supermarkets
                                                                                        • Figure 58: Why they spend the most in supermarkets, September 2016
                                                                                      • Key reasons by age
                                                                                        • Figure 59: Leading reasons why they spend the most in supermarkets, by age, September 2016
                                                                                      • Reasons by retailer
                                                                                          • Figure 60: Reasons for spending the most in a supermarket in a typical month, by retailer where the most is spent in a typical month, September 2016
                                                                                        • Increased choices are driving some away
                                                                                          • Figure 61: Why they do not spend the most in supermarkets, September 2016
                                                                                        • Those living in urban areas more likely to have an alternative
                                                                                          • Figure 62: Why they do not spend the most in supermarkets, by area lived in, September 2016
                                                                                      • What They Would Change About Where They Shop

                                                                                          • Availability a concern
                                                                                            • Figure 63: Areas that grocery shoppers would like to see improved, any rank, September 2016
                                                                                            • Figure 64: Areas that grocery shoppers would like to see improved, by rank, September 2016
                                                                                          • Retailer-specific concerns
                                                                                            • Tesco: Quality concerns
                                                                                              • Figure 65: Overall ranking of factors supermarket shoppers would like to see improved, by total and by Tesco shoppers, September 2016
                                                                                              • Figure 66: What Tesco shoppers would improve, any rank, September 2016
                                                                                            • Sainsbury’s: Range a positive, but more information is needed
                                                                                              • Figure 67: Overall ranking of factors supermarket shoppers would like to see improved, by total and by Sainsbury’s shoppers, September 2016
                                                                                              • Figure 68: What Sainsbury’s shoppers would improve, any rank, September 2016
                                                                                            • Asda: A good deal of change needed
                                                                                              • Figure 69: Overall ranking of factors supermarket shoppers would like to see improved, by total and by Asda shoppers, September 2016
                                                                                              • Figure 70: What Asda shoppers would improve, any rank, September 2016
                                                                                            • Morrisons: Range of non-foods singled out
                                                                                              • Figure 71: Overall ranking of factors supermarket shoppers would like to see improved, by total and by Morrisons shoppers, September 2016
                                                                                              • Figure 72: What Morrisons shoppers would improve, any rank, September 2016
                                                                                            • Aldi: Quality of goods a real strength
                                                                                              • Figure 73: Overall ranking of factors supermarket shoppers would like to see improved, by total and by Aldi shoppers, September 2016
                                                                                              • Figure 74: What Aldi shoppers would improve, any rank, September 2016
                                                                                          • Attitudes towards Pricing and Promotions

                                                                                            • Consumers in favour of the move to EDLP
                                                                                              • Figure 75: Attitudes towards pricing and promotions, September 2016
                                                                                            • Sainsbury’s shoppers less convinced by EDLP
                                                                                              • Figure 76: Agreement with statements around pricing and promotions, by retailer where the most money is spent, September 2016
                                                                                            • Younger consumers far less price-aware
                                                                                              • Figure 77: Agreement with the statement ‘I rarely pay attention to prices when in a grocery stores’, by gender and age, September 2016
                                                                                            • In an EDLP world own-brand will be increasingly important
                                                                                              • Figure 78: Attitudes towards range reduction and own-brand, September 2016
                                                                                            • Tesco shoppers see own-brand as a bigger differentiator
                                                                                              • Figure 79: Agreement with the statement ‘The main difference between supermarket retailers is their own-brands’, by retailer where the most money is spent, September 2016
                                                                                          • Attitudes towards Brexit, Sourcing and Ethical Products

                                                                                            • Over a third expecting price rises post-Brexit
                                                                                              • Figure 80: Attitudes towards the effect of Brexit on pricing, September 2016
                                                                                            • Sourcing is likely to be thrown into the spotlight in a post-Brexit market
                                                                                              • Figure 81: Attitudes towards sourcing and the effect of Brexit, September 2016
                                                                                            • Aldi shoppers want more locally sourced products
                                                                                              • Figure 82: Attitudes towards sourcing and the effect of Brexit, by retailer where the most is spent, September 2016
                                                                                            • Younger consumers particularly aware of potential price rises
                                                                                              • Figure 83: Agreement with the statement “Leaving the European Union will mean we pay more for groceries in the UK”, by age, September 2016
                                                                                            • Ethical products perceived at coming at a (unfair) cost
                                                                                              • Figure 84: Attitudes towards ethical products, September 2016
                                                                                            • Younger consumers have concerns over the ethics of the discounters
                                                                                              • Figure 85: Agreement with the statement “The discounters, Aldi and Lidl, are less ethical (eg free-range, fair trade etc) than other supermarkets”, by age, September 2016
                                                                                          • Leading Retailers – What You Need to Know

                                                                                            • The big four continue to lose market share, but losses are slowing
                                                                                              • Online: increasingly a channel in its own right
                                                                                                • Retail product mix: room to grow non-foods
                                                                                                  • Advertising spend falls in 2015
                                                                                                    • Improved levels of trust at Tesco, Sainsbury’s and Morrisons
                                                                                                    • Innovation and Launch Activity

                                                                                                      • Making supermarkets a destination again
                                                                                                        • Figure 86: Habitat shop-in-shop, Sainsbury’s Nine Elms, October 2016
                                                                                                      • Groceries delivered straight to the fridge
                                                                                                        • Pop-up wine bars
                                                                                                          • Cycle delivery
                                                                                                            • Figure 87: Sainsbury’s Chop Chop, October 2016
                                                                                                          • Inclusive shopping
                                                                                                            • Tackling food waste
                                                                                                              • Fresh as can be
                                                                                                                • Figure 88: INFARM high-tech kitchen garden in Metro store, Berlin, February 2016
                                                                                                              • Free fruit for kids
                                                                                                                • Driverless trolleys
                                                                                                                • Leading Grocery Retailers – Key Metrics

                                                                                                                  • 2015: Another challenging year
                                                                                                                      • Figure 89: Leading grocery retailers: Net sales, 2011-15
                                                                                                                    • Store numbers and sales per outlet
                                                                                                                      • Figure 90: Leading grocery retailers: Store numbers, 2011-15
                                                                                                                      • Figure 91: Leading grocery retailers: Annual sales per outlet, 2011-15
                                                                                                                    • Sales area and densities
                                                                                                                      • Figure 92: Leading grocery retailers: Total sales area, 2011-15
                                                                                                                      • Figure 93: Leading grocery retailers: Annual sales per sq m, 2011-15
                                                                                                                    • Operating profits and margins
                                                                                                                      • Figure 94: Leading grocery retailers: Operating profits, 2011-15
                                                                                                                      • Figure 95: Leading grocery retailers: Operating margins, 2011-15
                                                                                                                  • Market Shares

                                                                                                                        • Figure 96: Leading grocery retailers: Share of sector sales, 2015
                                                                                                                        • Figure 97: Leading grocery retailers: Share of sector sales, 2011-16
                                                                                                                        • Figure 98: Market shares: the big four grocery multiples vs the discounters, 2011-16
                                                                                                                      • A note on our market share
                                                                                                                        • Space allocation and retail product mix
                                                                                                                        • Online

                                                                                                                            • Around half do some online grocery shopping…
                                                                                                                              • Figure 99: Usage of online grocery shopping, December 2015
                                                                                                                            • …but online only accounts for 5.3% of sector sales
                                                                                                                              • Figure 100: Online grocery sales as a % of all grocery retailers’ sector sales, 2011-16
                                                                                                                            • Delivery passes: a double-edged sword?
                                                                                                                              • Figure 101: Ownership and interest in delivery passes, December 2015
                                                                                                                            • Online market shares
                                                                                                                              • Figure 102: Leading online grocery retailers’ estimated market shares (excluding VAT), 2015
                                                                                                                            • What about Amazon?
                                                                                                                              • Figure 103: Attitudes towards shopping online for groceries from Amazon, December 2015
                                                                                                                          • Space Allocation Summary

                                                                                                                            • Summary data and classifications
                                                                                                                              • Figure 104: Food, non-food standard classifications, 2016
                                                                                                                            • Convenience comparison overview
                                                                                                                              • Figure 105: UK leading food retailers’ hypermarket store format: Convenience comparison overview split, October 2016
                                                                                                                              • Figure 106: UK leading food retailers’ superstore format: Convenience comparison overview split, October 2016
                                                                                                                              • Figure 107: UK leading food retailers’ smaller supermarkets and discounters: Convenience comparison overview split, October 2016
                                                                                                                            • Detailed convenience comparison split
                                                                                                                              • Figure 108: UK leading food retailers’ hypermarket store format: Convenience comparison detailed split, October 2016
                                                                                                                              • Figure 109: UK leading food retailers’ superstore format: Convenience comparison detailed split, October 2016
                                                                                                                              • Figure 110: UK leading food retailers’ smaller supermarkets and discounters: Convenience comparison detailed split, October 2016
                                                                                                                            • Food and drink split
                                                                                                                              • Figure 111: UK leading food retailers: food and drink categories as a percentage of total space allocated to food and drink, October 2016
                                                                                                                            • Detailed space allocation
                                                                                                                            • Retail Product Mix

                                                                                                                                  • Figure 112: Leading food retailers: Estimated sales mix, 2015
                                                                                                                                  • Figure 113: Leading food retailers: Category sales as % of total sales, 2015
                                                                                                                                  • Figure 114: Sales density, by broad category (ex VAT), 2015
                                                                                                                                  • Figure 115: Major food retailers: Estimated market share of key categories, 2015
                                                                                                                              • Brand Research

                                                                                                                                  • What you need to know
                                                                                                                                    • Brand map
                                                                                                                                      • Figure 116: Attitudes towards and usage of selected brands, October and January 2016
                                                                                                                                    • Key brand metrics
                                                                                                                                      • Figure 117: Key metrics for selected brands, October and January 2016
                                                                                                                                    • Brand attitudes: Lidl and Aldi lead on value
                                                                                                                                      • Figure 118: Attitudes, by brand, October and January 2016
                                                                                                                                    • Brand personality: Co-op struggles, but shows signs of improvement
                                                                                                                                      • Figure 119: Brand personality – macro image, October and January 2016
                                                                                                                                    • Discounters are seen as basic, but trendsetting
                                                                                                                                      • Figure 120: Brand personality – micro image, October and January 2016
                                                                                                                                    • Brand analysis
                                                                                                                                      • A good year for Tesco
                                                                                                                                        • A Morrisons renaissance
                                                                                                                                          • Asda’s reputation for value continues to dissipate
                                                                                                                                            • Lidl and Aldi increasingly seen to offer more than just value
                                                                                                                                              • Exclusivity of Waitrose and M&S Food helps them stand out
                                                                                                                                                • Co-op behind but moving in the right direction
                                                                                                                                                  • Iceland improves its image
                                                                                                                                                    • Ocado, small but highly recommended
                                                                                                                                                    • Advertising and Marketing Activity

                                                                                                                                                      • Total advertising spend falls in 2015
                                                                                                                                                        • Figure 121: Recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarket and online grocers, 2012-15
                                                                                                                                                      • Asda and Lidl lead advertising spend
                                                                                                                                                        • Changing advertising strategies
                                                                                                                                                          • Co-op increases adspend to focus on convenience
                                                                                                                                                            • Competition leads to disputes
                                                                                                                                                              • Figure 122: Recorded above-the-line, online display and direct mail total advertising expenditure by leading UK grocery retailers, 2012-15
                                                                                                                                                            • TV increases its dominance
                                                                                                                                                              • Figure 123: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by UK supermarkets and online grocers, 2012-15
                                                                                                                                                            • Lidl and Iceland boost spending on TV advertising
                                                                                                                                                              • Ocado prefers press advertising
                                                                                                                                                                • Figure 124: Percentage of recorded above-the-line, online display and direct mail total advertising expenditure by the UK’s leading grocery retailers, by media type, 2015
                                                                                                                                                              • Nielsen Ad Intel coverage
                                                                                                                                                              • Aldi

                                                                                                                                                                  • What we think
                                                                                                                                                                    • Simpler is better
                                                                                                                                                                      • Figure 125: Aldi joint advertising campaign, 2016
                                                                                                                                                                    • Slowing growth in the UK
                                                                                                                                                                      • Entering the Italian market
                                                                                                                                                                        • Experimenting with online
                                                                                                                                                                          • Company background
                                                                                                                                                                            • Company performance
                                                                                                                                                                              • Figure 126: Aldi: Estimated group sales performance, 2011-15
                                                                                                                                                                              • Figure 127: Aldi: Number of outlets, 2011-15
                                                                                                                                                                            • Retail offering
                                                                                                                                                                            • Asda Group

                                                                                                                                                                                • What we think
                                                                                                                                                                                  • Gross margins
                                                                                                                                                                                    • Cost cutting
                                                                                                                                                                                      • Falling market share
                                                                                                                                                                                        • Where next?
                                                                                                                                                                                          • Company background
                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                • Figure 128: Asda Group Ltd: Group financial performance, 2011-15
                                                                                                                                                                                                • Figure 129: Asda Group Ltd: Outlet data, 2011-15
                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                              • The Co-operative Food

                                                                                                                                                                                                  • What we think
                                                                                                                                                                                                    • New luxe brand to inspire and encourage customers to re-appraise The Co-op Food own-brand
                                                                                                                                                                                                      • Tailoring food ranges to local communities
                                                                                                                                                                                                        • Adapting its stores to make the top-up grocery shopping experience easier and quicker
                                                                                                                                                                                                          • Price cuts eating into profits
                                                                                                                                                                                                            • Award winning food-to-go product range
                                                                                                                                                                                                              • Tapping into health issues upper most in consumers' minds
                                                                                                                                                                                                                • Tackling food waste
                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                      • Figure 130: The Co-operative Food: Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                      • Figure 131: The Co-operative Food: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                    • Iceland Foods

                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                          • Three areas of future focus
                                                                                                                                                                                                                            • New concept store provides pointers to future direction of Iceland brand
                                                                                                                                                                                                                              • Power of Frozen campaign seeks to change perceptions
                                                                                                                                                                                                                                • The Food Warehouse brand taps into retail park popularity
                                                                                                                                                                                                                                  • Online business shows potential
                                                                                                                                                                                                                                    • Background
                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                        • Figure 132: Iceland Foods Ltd: Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                        • Figure 133: Iceland Foods Ltd: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                      • Marks & Spencer (UK food)

                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                            • Convenience food for treats and special occasions
                                                                                                                                                                                                                                              • Finding the right balance with availability
                                                                                                                                                                                                                                                • Innovation key to keeping offer fresh
                                                                                                                                                                                                                                                  • Refocusing on the UK
                                                                                                                                                                                                                                                    • Background
                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                        • Figure 134: Marks & Spencer (UK food): Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                                        • Figure 135: Marks & Spencer (UK food): Food outlets, by format, 2011/12-2015/16
                                                                                                                                                                                                                                                        • Figure 136: Marks & Spencer (UK food): Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                      • Ocado

                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                            • Scaling up
                                                                                                                                                                                                                                                              • UK grocery home delivery competition intensifies
                                                                                                                                                                                                                                                                • Still no news on international partner
                                                                                                                                                                                                                                                                  • Pressure builds for more distribution centres
                                                                                                                                                                                                                                                                    • Background
                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                          • Figure 137: Ocado group plc: Group financial performance, 2010/11-2014/15
                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                        • J. Sainsbury

                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                              • Argos
                                                                                                                                                                                                                                                                                • Distraction
                                                                                                                                                                                                                                                                                  • Modest optimism
                                                                                                                                                                                                                                                                                    • Background
                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                        • Figure 138: Sainsbury’s: Quarterly sales performance, Q1 2016-Q2 2017
                                                                                                                                                                                                                                                                                      • Pharmacy
                                                                                                                                                                                                                                                                                        • Figure 139: J. Sainsbury: Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                                                                        • Figure 140: J. Sainsbury: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                      • Schwarz Group (Lidl)

                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                            • Chasing Aldi in key markets
                                                                                                                                                                                                                                                                                              • Changing strategy in France
                                                                                                                                                                                                                                                                                                • Plans to break America
                                                                                                                                                                                                                                                                                                  • Tentative moves online
                                                                                                                                                                                                                                                                                                    • The Lidl shopper
                                                                                                                                                                                                                                                                                                      • Company background
                                                                                                                                                                                                                                                                                                        • Company performance
                                                                                                                                                                                                                                                                                                          • Figure 141: Schwarz Group: Group sales performance, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                          • Figure 142: Schwarz Group: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                        • Spar International

                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                              • Top-up grocery shopping opportunities
                                                                                                                                                                                                                                                                                                                • More reasons to visit Spar
                                                                                                                                                                                                                                                                                                                  • Supporting consumers’ healthy food and lifestyle choices
                                                                                                                                                                                                                                                                                                                    • New grocery delivery services
                                                                                                                                                                                                                                                                                                                      • Own-brand drive
                                                                                                                                                                                                                                                                                                                        • Digital Leadership Store
                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                              • Figure 143: Spar International: Retail sales, by country, 2011-15
                                                                                                                                                                                                                                                                                                                              • Figure 144: Spar International: Outlets, 2011-15
                                                                                                                                                                                                                                                                                                                              • Figure 145: Spar International: Retail sales area, 2011-15
                                                                                                                                                                                                                                                                                                                              • Figure 146: Spar International: Sales per sq m, by country, 2011-15
                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                            • Tesco

                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                  • Success
                                                                                                                                                                                                                                                                                                                                    • Credit where it is due
                                                                                                                                                                                                                                                                                                                                      • Making the most of its assets
                                                                                                                                                                                                                                                                                                                                        • Retailing against the hard discounters
                                                                                                                                                                                                                                                                                                                                          • The problems of maturity
                                                                                                                                                                                                                                                                                                                                            • Outside the UK
                                                                                                                                                                                                                                                                                                                                              • Background
                                                                                                                                                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                                                                                                                                                  • Figure 147: Tesco: Like-for-like sales performance (excluding fuel), H1 2015/16-H1 2016/17
                                                                                                                                                                                                                                                                                                                                                  • Figure 148: Tesco, sales and share of food retailers sales, by country, 2014/15 and 2015/16
                                                                                                                                                                                                                                                                                                                                                • UK
                                                                                                                                                                                                                                                                                                                                                  • RoI
                                                                                                                                                                                                                                                                                                                                                    • Central Europe
                                                                                                                                                                                                                                                                                                                                                      • Figure 149: Tesco: European businesses, 2016
                                                                                                                                                                                                                                                                                                                                                      • Figure 150: Central Europe: store portfolios, October 2016
                                                                                                                                                                                                                                                                                                                                                    • Online
                                                                                                                                                                                                                                                                                                                                                      • Fuel
                                                                                                                                                                                                                                                                                                                                                        • Tesco Bank
                                                                                                                                                                                                                                                                                                                                                          • Tesco Mobile
                                                                                                                                                                                                                                                                                                                                                            • Figure 151: Tesco Plc: Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                            • Figure 152: Tesco Plc: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                                                                          • Waitrose

                                                                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                                                                • Store investment focus shifts
                                                                                                                                                                                                                                                                                                                                                                  • Re-affirming its core values
                                                                                                                                                                                                                                                                                                                                                                    • Waitrose 1 helps consolidates premium ranges
                                                                                                                                                                                                                                                                                                                                                                      • Experiential shopping
                                                                                                                                                                                                                                                                                                                                                                        • Online
                                                                                                                                                                                                                                                                                                                                                                          • Background
                                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                                              • Figure 153: Waitrose: Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                                              • Figure 154: Waitrose: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                                            • Wm Morrison Group

                                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                                  • Cutting prices…
                                                                                                                                                                                                                                                                                                                                                                                    • …to better compete with discounters…
                                                                                                                                                                                                                                                                                                                                                                                      • …and address shoppers’ pricing concerns post-Brexit
                                                                                                                                                                                                                                                                                                                                                                                        • More reasons to visit Morrisons stores
                                                                                                                                                                                                                                                                                                                                                                                          • Tailoring product offering to suit local tastes
                                                                                                                                                                                                                                                                                                                                                                                            • A more rewarding loyalty card scheme
                                                                                                                                                                                                                                                                                                                                                                                              • Flagging up the in-store skills of its trained butchers, bakers and fishmongers
                                                                                                                                                                                                                                                                                                                                                                                                • Morrisons.com expanding home delivery coverage
                                                                                                                                                                                                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 155: Wm Morrison Group: Group financial performance, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 156: Wm Morrison Group: Outlet data, 2011/12-2015/16
                                                                                                                                                                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                                                                                                                                                                                                                      • Data sources
                                                                                                                                                                                                                                                                                                                                                                                                        • Financial definitions
                                                                                                                                                                                                                                                                                                                                                                                                          • VAT
                                                                                                                                                                                                                                                                                                                                                                                                            • Abbreviations
                                                                                                                                                                                                                                                                                                                                                                                                              • Consumer research methodology
                                                                                                                                                                                                                                                                                                                                                                                                                • Detailed space allocation
                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 157: UK leading food retailers hypermarket store format: detailed space allocation, October 2016
                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 158: UK leading food retailers superstore format: detailed space allocation, October 2016
                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 159: UK leading food retailers smaller supermarkets and discounters: detailed space allocation, October 2016
                                                                                                                                                                                                                                                                                                                                                                                                              • Appendix – Sector Size and Forecast

                                                                                                                                                                                                                                                                                                                                                                                                                • Forecast Methodology

                                                                                                                                                                                                                                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                                                                                                                                                                                                                                To learn more about the companies covered in this report please contact us.