Complete 9 pages APA formatted article: Supermarkets in the United Kingdom. The food and retail industries are showing exponential growth. the main credit goes to the four giants in the supermarket in

Complete 9 pages APA formatted article: Supermarkets in the United Kingdom. The food and retail industries are showing exponential growth. the main credit goes to the four giants in the supermarket industry who are opening numerous stores at an accelerating rate (Neate, 1). The report by Corporate Commission has indicated that Tesco, Sainsbury’s, Asda and Morrison have been successful in getting permission from the concerned authorities to expand into other areas by opening up new stores. The report also highlighted the threat to the expansion of these large supermarkets posed to the convenience stores, local grocery stores, and specialty stores. The study of Clarion et al. revealed that the large supermarkets are doing an expansion on such an increasing rate so that they can get more market share as compared to their competitors and it is expected that the trend will continue so because of the support that they are receiving by the UK government (470-471).

The IGD research has shown that in the past ten years, the grocery market of the UK has been growing at an exponential rate and the number of large supermarkets has risen to an exceptionally high figure. In 2008, the grocery market had reached £146.3bn from £93.3bn in the year 1998. Afterward, the market has seen numerous uncertainties in the form of less consumer spending power, high rate of unemployment, financial crisis and many more. As of 2008, the UK grocery store has been divided into four major sectors i.e. convenience store. hypermarket, superstore, and supermarkets. online channels and traditional retail.

Among all the sectors, the huge market is of hypermarket, superstore, and supermarkets and these comprise of more than 73% of the entire sales of the grocery market, followed by convenience stores’ sector that has 21% of the total sales. however, traditional retail faces stiff competition from the aforementioned two sectors and it has declined to 5% (Michaels, 1). According to the Corporate Watch, the four biggest supermarket chains in the UK market comprise of Tesco, Sainsbury’s, Asda and Morrison and they collectively constitute of about 68% of the complete grocery market.

Tescopoly has shown that the grocery market share can be distributed as the traditional retail stores and supermarket chains. the market share is divided as 30% of Tesco, 15% of Asda, 14% of Sainsbury’s, and Morrison of 10%. Other supermarket chains that are included in the UK grocery market are Marks and Spence, Iceland, Waitrose, Whole Foods Market, Aldi, Lidl and many more (Vasquez-Nicholson, 3). Porter has reported that the disclosed sales figure of the four large supermarket chains in the last financial year are as follows, Tesco £3.8billion, Asda £803 million, Sainsbury’s £827 million and Morrison £874 million. In the UK grocery store, Tesco is the market leader and it was the first one to introduce the concept of the loyalty card in the market and it has enhanced the marketing system of the store. Currently, the store has more than fourteen million members and it was the first supermarket in the UK to initiate the online shopping experience which has received huge appreciation from the market (Michaels, 3). It is among these stores that have the highest number of employees who have created ample job opportunities for the residents of the UK and its sales have been increasing at an exceptional rate.

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