Released on = April 16, 2007, 9:20 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The origin of modern supermarkets in the UK can be traced
back to the beginnings of the Co-operative movement in the 19th century, when a
group of independent local retailers joined forces to sell food at affordable
prices. However, for decades, there remained a greater degree of self-sufficiency,
while post-war Britain was accustomed to stretching meagre supplies with many
foodstuffs still in short supply.

Press Release Body = Trends in Food Shopping Market Assessment 2006

The origin of modern supermarkets in the UK can be traced back to the beginnings of
the Co-operative movement in the 19th century, when a group of independent local
retailers joined forces to sell food at affordable prices. However, for decades,
there remained a greater degree of self-sufficiency, while post-war Britain was
accustomed to stretching meagre supplies with many foodstuffs still in short supply.

This started to change in the late 1950s, as the country recovered economically and
food was no longer rationed as supplies returned to normal. The 1960s saw a
proliferation of self-service supermarkets, which, in turn, led to huge out-of-town
superstores, encouraging one-stop bulk buying. The abolition of Retail Price
Maintenance (RPM) - which was phased out over a number of years - meant that
consumers benefited from the lower prices brought about by competition and from the
timesaving and convenience associated with a one-stop shop. This, of course, was at
the expense of smaller independent operators on the high street, many of which were
forced out of business, unable to compete on price or extent of choice. Corner
shops, which traditionally had an advantage of longer opening hours, suffered too,
as supermarkets extended their opening times, now sometimes opening for 24 hours.

Once `a nation of shopkeepers\', the retailing of food in the UK is now dominated by
the four major grocery chains: Tesco, ASDA, Sainsbury\'s and Wm Morrison, which all
cannibalise each other\'s sales in a fairly saturated market. Their out-of-town
superstores still flourish, but they are also increasingly encroaching on the
convenience sector, with small formats on the high street.

The immense power of the principal supermarket chains in the UK has led to them
being the subject of an enquiry by the Competition Commission recommended by the
Office of Fair Trading (OFT). An All-Party Parliamentary Group for Small Shops
published a report in February 2006 (High Street Britain 2015) in which it warned
that, by 2015, Britain could be covered with `clone towns\', with large retailers
lining some high streets and others totally devoid of shops. It also voiced the
concern that the grocery multiples will put their prices up again, once the
independents have been eradicated from the high street. Predictably, Tesco disagreed
with the All-Party Parliamentary Group for Small Shops\'s view that small shops are
in terminal decline, saying that people will use supermarkets and small shops at
different times. However, the outcome of the Competition Commission enquiry, which
could last 2 years, will be awaited with interest by retailers, large and small
alike.

The fact that the large grocery multiples are returning to the high street has come
about in recognition of the effect of changing lifestyles on shopping habits. An
increase in the number of single households (with little necessity to shop in bulk),
increased pressure on leisure time, families eating different foods at different
times, and the increasing trend towards snacking, all contribute to a return to
`top-up\' shopping. Another major change in shopping habits is the advent of Internet
shopping. Some people will always want to select produce themselves and others may
have no idea what they intend buying as they enter a shop, but, to its converts,
online shopping is quick and convenient. Tesco.com claims it is the world\'s largest
Internet grocery store, but, of course, it is not just the large groceries that are
involved; e-commerce offers producers an invaluable route to their end user,
effectively removing the retailer in the middle.

Research was commissioned for this report from NEMS Market Research in order to
ascertain which factors people thought influenced their choice of where to shop. It
found that a wide choice of produce was a more important factor than low prices.
Certainly, the UK consumer is not short of choice and there are now few seasonal
limitations, due to the amount of imported food. However, some people object, on
environmental grounds, to the number of `food miles\' travelled by imports and, on
humanitarian grounds, to the fact that many overseas workers are exploited in the
production of food while UK producers and suppliers are bypassed. Such shoppers are
encouraged to buy locally and seasonally, and the number of farmers\' markets has
increased dramatically, as a result.


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