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UK Neighbourhood Retailing 2008 |
| Published Date : 7 October 2009 |
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Pages : 226 |
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Introduction Neighbourhood retailing is outperforming all other locations. The location offers substantial opportunities, but the dynamics of the market are changing. As the market consolidates, growth is becoming more elusive and while substantial opportunities remain, trading conditions are more challenging and the strategies for success very different. Scope *Key metrics of neighbourhood retail: sales growth, space, store numbers, store sizes and sales densities. *Detailed market analysis (convenience, off-licences, CTNs, food specialists, pharmacies) and profiles of all the leading neighbourhood retailers *Focus on composition of convenience market (The Co-operatives, Multiples, Symbol Groups, Independents, forecourt retailing) *Market shares for leading players 2003-2008 Highlights Neighbourhood retailing is benefitting from a shift in shopping habits, an increased demand for convenience, improved standards and the arrival of the grocers. The expansion of the grocers has enticed people to shop locally and the symbol groups to enhance their propositions, encouraging independents to join and consumers to shop with them. Competition is intensifying and pressures on food specialists, independents, off-licences and CTNs mounting. With the market consolidating, the easy wins of the past are harder to come by, while the boost received from the arrival of the grocers can not be repeated. Growth is set to become more elusive and the strategies for success different. With propositions becoming more comprehensive, the need for CTNs, off-licenses and undifferentiated specialists is diminishing. As the market consolidates, store environments, fresh food and food-to-go will be key battlegrounds and the multiples, with the expertise and investment available to them, are well placed be the big winners. Reasons to Purchase *Benchmark retailer performance against the market. Understand the dynamics of the location, its composition and prospects for each channel *Identify the growth prospects of key players in neighbourhood retailing *Analyse the key issues impacting the location and identify thestrategies for success |
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Table of Contents : |
CHAPTER 1 EXECUTIVE SUMMARY 24 Food-led neighbourhood to outperform total retail 25 Neighbourhood retailing creating a virtuous circle 25 Tesco and Sainsbury feeding virtuos circle and exerting competitive pressure 25 Takeover of Somerfield cements top place for The Co-operative 25 Symbol groups recruitment blitz will consolidate market further 26 CTNs and Off-licences a dwindling format 26 Grocers look at alternative sites for expansion as market saturates 26 Symbol groups improve offer, but risk falling behind 27 Convenience stores benefit from demand for top-up shopping 27 Diversifying offer to exploit high footfall and desire for convenience 28 Neighbourhood sales growth becoming more elusive 28 Power to shift further to grocers and large symbol groups 28 CHAPTER 2 KEY ISSUES 30 Exploiting opportunities in outperforming location 31 Changing shopper demographic 31 Demand for top-up shopping 32 Desire for convenience 33 Adapting to changing dynamics of location 34 Market consolidating 34 Competition intensifying 35 Consolidation to impact future growth opportunities 36 Flexible formats 38 Flexible propositions 38 Symbol groups boost loyalty 38 Diversify & Differentiate 39 Threats Remain 40 CTNs and off-licences lose out to bigger players 41 Onerous legislation will hit sales and profits 41 Dwindling need for CTNs & Off-licences 42 Only highly differentiated food specialists will survive 42 CHAPTER 3 NEIGHBOURHOOD MARKET 44 Summary 44 Supermarkets and symbol groups pressurise unaffiliated independents 44 Components of neighbourhood retailing 46 Neighbourhood sales channels 47 Majority of neighbourhood sales through convenience stores 48 Space 50 Multiples and symbol groups slow decline in space 50 Neighbourhood SWOT analysis 52 CHAPTER 4 NEIGHBOURHOOD V OTHER LOCATIONS 53 Sales 55 Sales growth driven by multiples and symbol groups 55 Space 58 Opportunistic retailers help slow declines in neighbourhood space 58 Sales densities 60 Boosted by product mix and expansion of multiples 60 Stores 62 Vacant stores are snapped up quickly 62 CHAPTER 5 C-STORES AND SMALL GROCERS 65 Summary 65 Despite continued consolidation, market remains fragmented 65 SWOT analysis 67 Key messages 68 Unafilliated independents continue to be recruited by symbol groups 68 Smaller Grocers – The Co-operative stamps authority and supermarkets exert pressure 68 Convenience retailing will benefit from changing shopping habits 69 Constrained household budgets make value key 69 Growing importance of fresh food and food-to-go 70 C-stores expand on to forecourts 70 Waitrose sensibly commits to convenince store expansion 71 CHAPTER 6 C-STORES: OTHER SYMBOL GROUPS 73 Introduction 73 Summary 73 How Costcutter / Nisa-Today’s relationship evolves will significantly impact on Nisa 73 Prevalence of wholesalers with a symbol group offer could decline sharply 74 Fresh produce and own brands become vital aspects of propositions 74 Key players 75 Best-one (Bestway) 75 Key Store (JW Filshill) 76 Lifestyle (Landmark Group) 76 Mace (Palmer & Harvey McLane) 77 Nisa-Today’s 77 CHAPTER 7 C-STORES ON FORECOURTS 80 Summary 80 Still hold opportunities for convenience and food service brands 80 Key messages 80 After decline petrol station numbers stabilise 80 Modern forecourt convenience stores continue to break old stereotypes 81 Motorists shop spend was resilient despite high fuel prices in 2008 81 Convenience store and oil company partnerships still being pursued 82 Service station food-to-go remains a growth area 83 Franchise arrangements increasingly prevalent 83 BP, Shell and Total continue to prospect for new dealers 83 BP franchise model successful template for others 83 SWOT analysis 85 Store numbers 86 Key players 87 BP has strongest shop brand on UK forecourts 87 Shell develops private label food-to-go range 88 Esso partnership with Tesco leaves it well placed 88 Total trio of formats 89 Almost all Texaco sites are dealer-owned 89 Smaller fuel retailers partner with branded stores 89 CHAPTER 8 TRADITIONAL FOOD SPECIALISTS 91 Summary 91 Niche players set to capitalise in struggling market 91 SWOT analysis 92 Key messages 92 Food specialists continue to struggle 92 Niche operators that diversify will prosper 93 Future for the sector looks challenging 94 Neighbourhood food specialists in wider context 95 Multiples and symbol groups encroach on specialists territory 95 Background of total sales, space and stores 97 Food specialists sales continue to be pressurised by multiples 97 Space and stores continue to contract as competition intensifies 100 CHAPTER 9 TRADITIONAL OFF-LICENCES 102 Summary 102 Off-licences face uncertain future 102 SWOT analysis 103 Key messages 104 Specialist off-licences under pressure from all sides 104 Proposed minimum unit pricing will be of no benefit to off-licences 104 Specialists need to utilise their strengths to advantage 105 Problem areas: shallow range, lack of knowledge and prices not low enough 105 First Quench (Threshers, Wine Rack, Haddows and The Local) 106 Struggles for survival 106 Other key players 107 Bargain Booze 107 Laithwaites 108 Majestic Wine 108 Oddbins 109 Wine Cellar 109 CHAPTER 10 NEIGHBOURHOOD PHARMACIES 110 Summary 110 Pharmaceutical market defies downturn 110 SWOT analysis 111 Key Messages 112 Local chemists seek to capitalise 112 Deregulation allows growth for supermarkets and independents alike 112 Smaller independents struggle against supermarkets and abolishment of PPA 112 Swine Flu injects boost 113 Pharmacies compete with GPs 113 Alliance Boots 114 Key Messages 117 Lloydspharmacy 118 Key Messages 120 CHAPTER 11 TRADITIONAL CTN OPERATORS 123 Summary 123 CTNs face increasingly uncertain future 123 SWOT analysis 124 Key messages 125 Increasingly competitive marketplace 125 Diversifying offer essential for survival 125 Provide service to encourage loyalty and spend 126 CTNs need to adapt store environments following tobacco legislation 126 Consolidation in newspaper distribution will see more CTNs close 127 Martin McColl 128 CHAPTER 12 FORECAST 130 Retail spending by location in 2008 and 2013 130 Multichannel retailers will prosper as online spending grows 130 Neighbourhood retailing to 2013 131 Sales growth to rise as multiples and symbol groups take over 131 Convenience stores will prosper in increasingly competitive market 133 Declines in space and stores will slow as market consolidates 134 CHAPTER 13 COMPANY DATA ANALYSIS 136 Summary 136 Winners & losers 136 |
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Published By : Verdict Research Ltd |
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Keywords:
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Design,Oil
and Gas,
Solar,
Miscellaneous,
Business,
Pharmaceuticals,
Technology,
Defense,
Medical,
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Power,
Metal
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