Large departmentalized retail establishment

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A large departmentalized retail establishment offering a relatively broad and complete stock of dry groceries, fresh meat, perishable produce, and dairy products, supplemented by a variety of convenience, nonfood merchandise and operated primarily on a self service basis.(American marketing association)

Uk has a wide range of supermarkets .Main super markets in uk are aldi, asda, ice holds,Lidl, Morrison's ,Sainsbury ,Somerfield ,tesco etc.

Independent High Street shops could be eradicated by 2015 unless leading supermarkets limit their expansion into the convenience sector, according to the Forum for Private Businesses (FPB).

A few years ago supermarkets were criticized for deserting high streets and squeezing corner shop operators. Now they are back on the high street, snapping up every corner shop in sight to rebrand as an Express or Local, and the retailers feeling the pain now are big nationwide chains selling anything but food.

However, from cities like Birmingham to rural villages, the small family-run, independent or corner shops are giving way to a new breed. Large numbers of 'mini supermarkets' - local or convenience stores owned by retail giants like Tesco, Sainsbury, Marks and Spencer - are appearing.

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The Tesco Express or the Sainsbury Local may offer customers convenience and familiarity but they are destroying the individual look of traditional shopping streets and running independent retailers into the ground, according to a report published.

The study by the Federation of Wholesale Distributors, which represents the interests of 50,000 retailers nationwide, says more than 67 per cent of Brummies thought High Streets were 'beginning to look the same' and 80 per cent believed the identity of their High Street was under threat.

The federation has called on the Government to do more to protect independent shops which are reckoned to generate pounds 22 billion in revenue and employ half

Alan Twigg, from the federation, is involved in a two-year campaign called 'My Shop is Your Shop', which aims to raise the profile of small independent businesses.

'In the last two years, the big names like Asda, Sainsbury, Tesco, have been moving into towns and even villages and squeezing out independent storekeepers.

'The majority of people who run corner shops live in the local area, sometimes for many generations, their families go to local schools, and they know their customers, unlike these store chain mangers who are parachuted in by headquarters and have no connection with the area.

'There are some cases where local independent stores have managed to cope when a supermarket has opened nearby but by and large they get pushed out of business.

'If people do not want this to happen, they should support their local store.'

The criticism of large chains was echoed by another federation spokesman, Alan Toft.

'While research and observation of everyday life tell us that consumers feel they have seen progress in the overall retail offering, this report draws attention to the important concerns they have about the 'downsides' to this expansion,' he said.

Professor Ian Clarke, of Lancaster University management school, said: 'So far, calls for Government to recognise the evident inseparability of 'one-stop' and 'top-up' convenience shopping as one and the same market have fallen on deaf ears.

'The findings in this report show that people value the genuine diversity and local knowledge that smaller-owned outlets bring to their communities and these retailers need to be protected. Let us hope such calls are heard and that urgent action is taken before such cherished diversity disappears forever.

The Federation of Wholesale Distributors interviewed 2,200 UK adults on their attitudes towards their local communities. About 300 of those asked were from Birmingham n The report - The Call for Balance, Choice and Diversity - says nearly half of all people in Birmingham believe the unique and diverse identities of British towns, villages and cities are what make Britain 'great' n More than a third believe Birmingham has lost its identity in the last five years n Nearly 40 per cent of people in Birmingham do not enjoy shopping in supermarkets but feel they have no choice n About 79 per cent of people in the city said the Government did not care about protecting independent shops and 76 per cent said local government was turning a blind eye to planning permission for national chains.

BACKGROUND

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Supermarkets have become all powerful by putting smaller retailers out of business.

In the Ghost Town Britain reports (2003), the New Economics Foundation (NEF) revealed that between 1995 and 2000 we lost roughly one fifth of our local shops and services including post-offices, banks, butchers and grocers. Furthermore, over the five years to 2002, around 50 specialist stores closed every week.

In 1960, small independent retailers had a 60% share of the food retail market. By 2000, their share was reduced to 6% while the multiples share increased to 88%

With our high streets disappearing and our town centres shrinking, we are losing a focal point for community life and a place for meaningful interaction between people of different classes, cultures, ages and lifestyles. According to Caroline Lucas MEP, half the nation now shops in 1000 giant superstores.

Most obviously independent food stores close because the 'under-one-roof' format of the superstore seems to offer more choice and makes shopping 'more convenient', as does free car-parking or free buses. Many have also mimicked the idea of independent deli-style food counters with expert salespeople. This, however, can no way replicate the sense of community created by the high street, nor the level, range and quality of employment. Supermarkets have a totally different atmosphere to your local store. People push their trolleys up the endless anonymous aisles in a trance, and then queue impatiently at the checkout: its hardly a conducive environment to make a meaningful connection with your neighbors or the harried checkout operator.

RESEARECH QUESTIONS;

The report answers some critical questions relating to:

  • The emerging super markets growth in the uk
  • The past and current status of UK super markets.
  • The key role of the convenience market in future growth.
  • The future strategic situation for UK supermarkets.
  • The success factors and sensitivities for the UK super market.
  • The manner in which different companies compare their position in the uk

Super market industry.

LITRETURE REVIEW

Past research has been done in super markets growth over high street market share .corporate watch is the leading critical researcher since 1996 has proved in their research that super market is doing a clean sweep of the market share during the last two decade.reserach says that this growth started in 1960 where all the major leaders in super market have transformed from small business as described by napoleon as a' nation of shop keepers'.

Boots claimed 900 job losses on the tough competition from the supermarket chains. Boots have pinpointed toiletries for growth and their has been to minimize the prices of big brands and persuade food shoppers to ditch their regular visits to Boots.

Tesco which is selling more toiletries' then super drug and boots has introduced a 70 m pound price reduction in beauty products.

The new chief executive of Boots, Richard Baker, who has been recruited from Asda to bring some inside knowledge of how to fight back, said: "You don't have to be a genius to realize that the competition in this market is extraordinary and intensifying all the time".

In the current retail market they were numbers to die for, but Tesco wants more, and announced it was raising £1.6bn to fund further expansion, mostly in the UK.

RESEARECH OBJECTIVES:

Essentially the main objective of this research is to see whether Time running out for High Street retailers. Are figures clearly showed that super markets are growing in a bigger way and are killing high streets and small retailers.

Providing statistics and figures describing super markets growth is enormous and main reason behind distraction of high street is clearly super markets.

The main aim of this research study is to determine whether super markets are actually eating more market share. This research will focus on the mental and / or emotional effects of super markets growth in United Kingdom.

RESEARCH METHODOLOGY:

After choosing a research topic and done the preliminary literature review the next move will be the route map for the research project. This proposal covers the exploratory side of the research(exploratory research ;This genre of research simply allows the marketer to gain a greater understanding of something that s/he doesn't know enough about ....market research world)

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The research describes the basics of uk supermarkets statistics as compare to high streets and small business This methodology involves watching and recording behaviors within a clearly defined area. The research plays the role of passive observer and is, therefore, outside the action/s being observed and recorded.

DATA COLLECTION METHODS

This research describes the secondary method( secondary data can be literally defined as second hand analysis. it is the analysis the analysis of data or information that was either gathered by someone else (e.g. researchers, institution etc)or from some other purpose then the one currently being considered, or often a combination of two (by cnossen school of public administration and law 1997 ) from whole sale distribution association and corporate watch .in order to obtain data various magazines and articles such as uk groceries report 2006 and BBC news and Birmingham post data has been collected in order to strengthen this research proposal.

REFERENCES

Corporatewatch.org.uk - overview supermarkets growth

Uk groceries market paper 2006.

Decision News Media SAS -By Leah Vyse 18/10/2005

TNS Worldpanel - Julia Finch

The Guardian UK grocery market Friday January 16, 2004

High street shops survey .01February2007(which.co.uk)

B.b.c news 9 June 2004.

The independent 4 nov 2007

New fears for future of the UK high street -independent July 16 2006