UK SUPER MARKET INDUSTRY

UK Super Market Industry

UK Super Market Industry

Introduction

The main purpose of this paper is to discuss the UK retail industry and make an analysis on the highest superstores in UK. This paper discusses the main competitors in the UK industry and the reason of their competitive advantage and the anti competitive behaviour in the UK superstore industry. In the UK, supermarkets are the dominant force in retail (retail) and people feel they are destroying the soul of cities and towns. Most people buy loq ue need for your home in any of the yield of supermarkets. People are realizing that by spending their money, they are giving revenue to independent shops that are located in the commercial area of towns and villages, and many are disappearing. Despite this, it is difficult resistive at low prices and convenience offered by supermarkets to small shops that cannot compete.

Top 5 Firms & their profitability

Tesco

Tesco is the largest supermarket chain in the UK and fourth, in the world. Tesco is twice as large as its nearest rival, Asda. Tesco has expanded to other countries like Ireland, Czech Republic, France, Hungary, Poland, Turkey, Thailand, India, Japan and China. Tesco has hypermarkets on the outskirts of cities but also have built small stores in town centers for people who are doing their shopping on foot, currently has over 1988 stores in the UK and 1275 in the world. It seems that Tesco is involved in all sectors of the economy.

 

2002

2003

2004

2005

2006

2007

2008

Profitability

4%

6.70%

8.90%

7.90%

15%

25%

30.10%

If we analyze the profitability of Tesco, it is obvious that Tesco is very good in terms of its profitability. The profitability percentage of Tesco is increasing every year. As the chart shows, that it has increased from 4%8.90% from 2002 to 2004. Again in 2005, it dropped from 8.90% to 7.90%, but afterwards it increased with a marginal rate and reached 30.10% in 2008.

ASDA

ASDA was founded in 1949 and is currently the second largest supermarket in the UK for sales. ASDA was bought by the American multinational Wal-mart in 1999 and has 243 supermarkets and hypermarkets where 37 ASDA Wart also sell clothing, appliances, CDs, DVDs, stationery and much more. Prices at ASDA are quite economical, especially for food consumption as bread and vegetables daily.

 

2002

2003

2004

2005

2006

2007

2008

Profitability

6%

5.70%

5.90%

2.90%

6%

8%

4.40%

Profitability of ASDA is not constant; it is either increasing or decreasing. From 2002 to 2003, it has decreased from 6% to 5.70%, whereas, from 2003 to 2004 it has increased from 5.70% to 5.90%. In 2005, it decreased with a marginal rate i.e. from 5.90% it decreased to 2.90%, but again in 2006 the company faced the marginal growth of 6% in 2006 and 8% in 2008.

Sainsbury

Sainsbury's are not known to the supermarket as economical, but by selling quality products and offer a wide variety of vegetables, condiments, etc. Due to the recent financial crisis Sainsbury's has introduced lower-quality products and value-called "value" so that their income has increased this year. Sainsbury's began in 1869 and Sainsbury's family still owns a ...