E-commerce To Boost Non-food Sales In Supermarkets – Coursework Example
UK Market Institution
UK Grocery Market
Analysts have forecasted that Marks & Spencer is losing their clothing market than any of its rivals in UK (Butler, 2014). For the year to end March, its market share has dropped from 11.36% to 11.18% from the previous year even as it plans to give updates on its expansion to Paris. Rival Next has taken a huge market share among the top players.
Sainsbury, which had its sales improved by 2.1% from the previous year, has had its non-grocery items sales hit 1bn pounds (BBC, 2013). Roger Burnley, the MD said the thorough sorting of new lines was the main reason behind the improved sales (Gilbert, 2013). The company poised its potential citing the fact that its products haven’t been availed fully in supermarkets.
Grocery market share in the UK has seen Tesco lead with a huge margin of 29% leaving and Sainsbury’s closely tied at 16.9% and 16.7% respectively (Statistica, 2015). Morrisons came third with 11.1%. The Cooperative, Waitrose and Aidi had 5.9%, 5.2% and 4.9% respectively as Lidl, Iceland and Symbols and Independent closed with less than 3.5% each.
According to specialist Key Note non-food sales has grown in the recent years due to the constant entry of supermarkets into non-food areas and advancement of new channels of transaction such as e-commerce (Keynote, 2013). This trend will be seen between 2012 and 2016 but not as high as the previous years. For instance Sainsbury has seen higher profits on non-food items shoot with clothing rising by 20% compared to the previous year.
BBC (2013). Sainsburys reports 2.1% rise in annual sales. BBC, Accessed March 13, 2015 from http://www.bbc.com/news/business-21841023.
Butler, S. (2014). Marks & Spencer losing clothing market share faster than rivals. The Guardian, Accessed March 13, 2015 from http://www.theguardian.com/business/2014/mar/31/marks-and-spencer-losing-clothing-market-share-faster-rivals.
Gilbert, H. (2013). Sainsburys general merchandise sales hit £1bn. The Grocer, Accessed March 13, 2015 from http://www.thegrocer.co.uk/channels/supermarkets/sainsburys-general-merchandise-sales-hit-1bn/236726.article.
Keynote (2013). E-Commerce to Boost Non-Food Sales in Supermarkets. Keynote, Accessed March 13, 2015 from https://www.keynote.co.uk/media-centre/in-the-news/display/e-commerce-to-boost-non-food-sales-in-supermarkets/?articleId=101.
Statistica (2015). Market share of grocery stores in Great Britain for the 12 weeks ending February 1st, 2015. Accessed March 13, 2015 from http://www.statista.com/statistics/279900/grocery-market-share-in-the-united-kingdom-uk/.