Reportlinker Adds UK Non-food in Grocers 2010

Jan 28, 2010, 19:46 ET from Reportlinker

NEW YORK, Jan. 28 /PRNewswire/ --  Reportlinker.com announces that a new market research report is available in its catalogue:

UK Non-food in Grocers 2010

http://www.reportlinker.com/p0174795/UK-Non-food-in-Grocers-2010.html

Introduction

Verdict Research: Grocers non-food sales have been boosted by a number of factors and particularly the onset of recession and continued aggressive space expansion. We highlight the key trends and drivers which are set to impact the channel going forward as well as providing forecasts for grocers sales in each of the non-food categories which they operate.

Scope

  • Market size, sales and growth rates for the main non-food sectors in which the grocers operate.
  • The grocers' performance within these non-food sectors including individual growth rates and market share analysis for the Big Four.
  • Comprehensive profiles of the Big Four players: Asda, Morrison, Sainsbury, Tesco and analysis of the non-food propositions at smaller grocers.
  • Year-on-year category forecasts to 2013 for grocers' non-food sales.

Highlights

The recession has provided a clear fillip to grocers with consumers becoming increasingly frugal and significant capacity falling out the market with high street specialists in particular being affected. The grocers have also benefited from their robust footfalls, continued space growth and more focus on less-mature non-food categories.

Such impressive non-food value growth will be harder to achieve going forward. Space growth has slowed and non-food offers have now been rolled out to the majority of viable stores. Moreover, many weaker specialists have now exited the market and the remaining players tend to be more resilient, authoritative and less likely to cede market share.

Direct and online non-food propositions will form the basis through which long term non-food growth is driven. These can serve to enhance range credentials and help grocers to respond to changing consumer shopping habits by utilising the advantages that their large physical estates present.

Reasons to Purchase

  • The report explains in detail the issues and changing dynamics of the market.
  • Establish how non-food in grocers will perform up until 2013 and the opportunities that individual categories present.
  • Gain competitive advantage by understanding the strengths and weakness of the Big Four grocery players' non-food offers.

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 26

Key findings 26

Main conclusions 27

Grocers share of non-food consumer spend has continued to increase 27

The channel attracts robust footfall 27

Specialists fight to remain relevant; 27

Non-food growth will be harder for grocers to achieve 27

Grocers need to compete on range, service and merchandising 28

Space expansion and Direct propositions will drive gains 28

Asda and Tesco's respective Direct offers will become an increasingly important avenue through which to drive growth 28

But non-food standalones could fill geographical gaps 29

Sainsbury enjoys high growth rate, albeit from a low base 29

Morrison should stick to traditional non-food categories and those that complement its core food offer; 29

Grocers adopt flexible approach to non-food space allocation as they eye long term growth potential 30

CHAPTER 2 KEY ISSUES 31

Robust footfall in recession boosts grocers non-food market share 31

Heightened austerity and robust footfall 31

Demise of specialists 31

Changing out-of-town retail mix 32

Decline of town centres 33

Grocers will have to work harder for non-food growth 34

Growth is already more elusive 34

New arrivals out-of-town 35

Consumer demand changing 36

Restrictive legislation 36

Specialists react to the threat posed by grocers 38

Cultivating a niche becomes essential 38

High street retailers diversify to survive 39

Grocers should fight specialists strengths 41

Need to compete with specialists on more than price 41

Strong range architecture can heighten destination status 41

Improving service credentials a priority 42

Merchandising standards gradually improve 42

Standalones offset restrictions and improve retail brand perceptions 43

Direct propositions tackle long term non-food growth 44

Bridging range gap 44

Grocers should seek closer synergies between instore and online 45

Direct will change role of instore non-food space 46

Smaller grocers should consider linking with an online pureplay 46

CHAPTER 3 MARKET ANALYSIS 47

Definitions 47

Summary 48

Non-food market 49

Grocers non-food sales 2000-2010e 52

Grocers non-food space 55

Non-food market forecast to 2013 57

Grocers non-food sales forecast to 2013 58

CHAPTER 4 LEADING COMPANY DATA ANALYSIS 60

Non-food market shares 60

Operating Statistics 63

Space allocation 64

Standalone non-food format space allocation 67

Advertising spend 69

CHAPTER 5 ASDA 71

Thrives in tough conditions 71

Financials 72

Sales growth accelerates during downturn 72

Space 75

Space expansion and rising densities both help growth 75

Sector performance – non-food 77

Space allocation 77

Continues to drive impressive year-on-year uplifts 79

Market share gains continue 80

Outlook 81

Must regain focus if share gains are to continue 81

CHAPTER 6 WM MORRISON 84

Non-food remains down the list of priorities 84

Financials 85

Focus on food expertise helps profits 85

Space 87

Rapid growth after earlier consolidation 87

Sector performance – non-food 89

Space allocation 89

Non-food sales growth stagnates 91

Market share falls back as a result of core food focus 92

Outlook 94

Recovery shaken by departure of chief executive 94

CHAPTER 7 SAINSBURY 96

Success of market repositioning continues 96

Financials 97

Financial recovery continues with like-for-like growth 97

Growth continues through 2009 99

Space 100

Sector performance – non-food 102

Space allocation 102

Steady growth with non-food development 104

Market share gains continue unabated 106

Outlook 108

Abundant opportunities 108

CHAPTER 8 TESCO 110

Market share gains continue unabated as specialists falter 110

Financials 111

Trading performance shows ability to defy recession 111

Space 114

Sustains space growth despite recession 114

Sector performance – non-food 116

Space allocation 116

Non-food sales remain resilient 118

Market share gains continue 119

Outlook 121

Tesco must up its game to offset mounting competitive threats 121

CHAPTER 9 SMALLER COMPANY COMPARISONS 123

Market positions 123

Co-operative Group 123

Waitrose 124

Financials 125

Co-operative Group 125

Waitrose 126

The Co-operative Group 127

Waitrose 128

Sector performance – non-food 129

Co-operative Group 129

Waitrose 131

Non-food sales 133

Space allocation and sales mix 134

Other smaller grocers non-food offers 135

Discounters 135

Ocado 137

Iceland 138

Spar 138

Outlook 139

Smaller grocers should look to create concession and online partnerships 139

CHAPTER 10 SECTOR COMPARISONS 142

Main non-food markets in which grocers participate 142

Grocers non-food components 145

Grocers non-food space allocation by sector 149

Grocers non-food sales forecasts by market component 150

CHAPTER 11 CLOTHING & FOOTWEAR 152

Recession drives first decline since Verdict records began 152

Key players/Channels of distribution 154

Value and premium specialists drive market polarisation 154

Grocers sales 156

Outperform market but hit by decline in discretionary demand 156

Grocers shares 159

Sainsbury the main winner, with non-food focus paying off 159

Leading grocers clothing & footwear product offers 160

Asda 160

Morrison 161

Sainsbury 161

Tesco 162

Price 163

Pricing architecture 163

Range architecture 172

Outlook 178

Grocers forced to focus on attributes other than price 178

CHAPTER 12 ELECTRICALS 180

Electricals feels full impact of recession 180

Key players/Channels of distribution 183

Specialist channel continues to cede share 183

Grocers sales 186

Grocers achieve significant market share gains 186

Grocers shares 190

Electricals becomes an increasingly important category 190

Leading grocers electricals product offers 193

Asda 193

Morrison 194

Sainsbury 195

Tesco 196

Price 197

Pricing architecture 197

Range architecture 207

Outlook 209

market share gains become harder to achieve 209

CHAPTER 13 HEALTH & BEAUTY 212

Sector demonstrates its resilience 212

Key players/Channels of distribution 214

Smaller value specialists struggle in increasingly competitive market 214

Grocers sales 216

Continue to benefit from superior value and convenience credentials 216

Grocers shares 219

Market share gains driven by continued space expansion 219

Leading grocers health & beauty product offers 220

Asda 220

Morrison 221

Sainsbury 222

Tesco 223

Price 224

Pricing architecture 224

Range architecture 232

Outlook 234

Premium ranges and enhanced healthcare services to be major focus 234

CHAPTER 14 HOMEWARES 236

Struggles in wake of recession and a depressed housing market 236

Key players/Channels of distribution 238

Specialist channel weakens further as capacity falls out of the market 238

Grocers sales 240

Sales increases driven by space growth and range development 240

Grocers shares 243

Sainsbury major winner in increasingly mature homewares 243

Leading grocers homewares product offers 244

Asda 244

Morrison 245

Sainsbury 245

Tesco 247

Price 248

Pricing architecture 248

Range architecture 258

Outlook 261

Range architecture widens 261

CHAPTER 15 MUSIC & VIDEO 263

Digital downloading yet to compensate for fall in physical sales 263

Key players/Channels of distribution 266

Specialist channel evaporates as pureplay market share gains continue 266

Grocers sales 268

Music & video increasingly less of a focus 268

Grocers shares 272

Tesco's digital download proposition an advantage 272

Leading grocers music & video product offers 275

Asda 275

Morrison 276

Sainsbury 277

Tesco 278

Outlook 279

Big Four digital download progress is mixed 279

CHAPTER 16 OTHER NON-FOOD 281

Other non-food – discretionary categories hit harder by recession 281

Grocers sales 283

Grocers march on following 2008 blip 283

Grocers other non-food offers 286

Books, news & stationery 286

Asda 286

Morrison 286

Sainsbury 286

Tesco 286

DIY & gardening 288

Asda 288

Sainsbury 288

Tesco 288

Furniture & floorcoverings 289

Asda 289

Sainsbury 289

Tesco 289

Sports equipment 291

Asda 291

Sainsbury 291

Tesco 291

Toys & games 292

Asda 292

Sainsbury 292

Tesco 292

Outlook 293

Major focus on wider range architectures 293

CHAPTER 17 GLOSSARY 294

Financial Statistics – VAT 294

Trading Profile 294

Physical Development 294

Abbreviations 295

Technical Appendix 296

Clothing & footwear 296

Electricals 296

Health & beauty 296

Homewares 296

LIST OF TABLES

Table 1: Non-food definitions 2010 47

Table 2: Food & grocery market size vs. non-food market size 2000-2010e 49

Table 3: Spend on non-food at current and constant prices 2000-2010e 51

Table 4: Grocers non-food sales 2000-2010e 53

Table 5: Total consumer spend on non-food 2004-2009 & forecast to 2013e 57

Table 6: Grocers non-food sales 2004-2009 and forecast to 2013e 58

Table 7: Grocers proportion of non-food in grocers sales 2005-2010e 60

Table 8: Grocers non-food market shares 2005-2010e 60

Table 9: Grocers key operating statistics – trading 2008/09 63

Table 10: Grocers key operating statistics – stores 2008/09 63

Table 11: Grocers space allocation 2009 64

Table 12: Grocers space allocation 2009 65

Table 13: Asda Living/Tesco Homeplus space allocation 2009 67

Table 14: Asda Living/Tesco Homeplus space allocation 2009 68

Table 15: Major grocers advertising media spend 2003-2008 69

Table 16: Major grocers advertising spend by media type 2008 69

Table 17: Asda company overview 2010 71

Table 18: Asda key retail operating statistics 2005-2010e 72

Table 19: Asda UK trading record 2000-2010e 73

Table 20: Asda store profile 2000-2010e 75

Table 21: Asda store portfolio at June 2009 75

Table 22: Asda space allocation 2009 77

Table 23: Asda space allocation 2009 78

Table 24: Morrison company overview 2010 84

Table 25: Morrison key retail operating statistics 2005-2010e 85

Table 26: Morrison UK trading record 2000-2010e 86

Table 27: Morrison store profile 2000-2010e 87

Table 28: Morrison store portfolio at January 2009 87

Table 29: Morrison space allocation 2009 89

Table 30: Morrison space allocation 2009 90

Table 31: Sainsbury company overview 2010 96

Table 32: Sainsbury key retail operating statistics 2005-2010e 97

Table 33: Sainsbury UK trading record 2000-2010e 98

Table 34: Sainsbury store profile 2000-2010 100

Table 35: Sainsbury space allocation 2009 102

Table 36: Sainsbury space allocation 2009 103

Table 37: Tesco company overview 2010 110

Table 38: Tesco key retail operating statistics 2005-2010e 111

Table 39: Tesco UK trading record 2000-2010e 112

Table 40: Tesco store profile 2000-2010e 114

Table 41: Tesco store portfolio at February 2009 115

Table 42: Tesco space allocation 2009 116

Table 43: Tesco space allocation 2009 117

Table 44: Smaller grocers overview 2009 123

Table 45: Smaller leading grocers key comparisons 2009 123

Table 46: Smaller leading grocers UK turnover record 2004-2009 125

Table 47: Smaller leading grocers UK op profit and margins 2004-2009 125

Table 48: Smaller leading grocers space analysis 2004 to 2009 127

Table 49: Co-operative Group non-food coverage 2009 129

Table 50: Waitrose non-food coverage 2009 131

Table 51: Non-food sales of smaller players in calendar years 2004-2009 133

Table 52: Smaller leading grocers space allocations and sales mixes 2009 134

Table 53: Non-food sales by main product categories 2000-2010e 142

Table 54: Grocers non-food sales by category 2000, 2005 & 2010e 145

Table 55: Big four non-food space percentage point change 09 on 08 149

Table 56: Grocers non-food sales by main categories 2004-2013e 150

Table 57: Leading grocers clothing & footwear market shares 2005-2010e 159

Table 58: Shares of grocers clothing & footwear sales 2005-2010e 159

Table 59: Comparison of opening price points in selected clothing & footwear categories Asda and Marks & Spencer 2009 vs 2008 163

Table 60: Comparison of opening price points in selected clothing & footwear categories Matalan and Next 2009 vs 2008 164

Table 61: Comparison of opening price points in selected clothing & footwear categories Sainsbury and Tesco 2009 vs 2008 165

Table 62: Comparison of closing price points in selected clothing & footwear categories Asda and Marks & Spencer 2009 vs 2008 166

Table 63: Comparison of closing price points in selected clothing & footwear categories Matalan and Next 2009 vs 2008 167

Table 64: Comparison of closing price points in selected clothing & footwear categories Sainsbury and Tesco 2009 vs 2008 168

Table 65: Numbers of options in bras and dresses 2009 vs 2008 172

Table 66: Numbers of options in jeans and casual skirts 2009 vs 2008 173

Table 67: Numbers of options in boys pyjamas and boys trousers 2009 vs 2008 174

Table 68: Numbers of options in girls dresses and girls trousers 2009 vs 2008 175

Table 69: Numbers of options in boxer shorts and formal shirts 2009 vs 2008 176

Table 70: Numbers of options in jeans and outer jackets 2009 vs 2008 177

Table 71: Leading grocers electricals market shares 2005-2010e 190

Table 72: Shares of grocers electricals sales 2005-2010e 192

Table 73: Comparison of opening price points in selected electricals categories Asda and Comet 2009 vs 2008 197

Table 74: Comparison of opening price points in selected electricals categories Currys and Morrison 2009 vs 2008 198

Table 75: Comparison of opening price points in selected electricals categories Sainsbury and Tesco 2009 vs 2008 199

Table 76: Comparison of closing price points in selected electricals categories Asda and Comet 2009 vs 2008 200

Table 77: Comparison of closing price points in selected electricals categories Currys and Morrison 2009 vs 2008 201

Table 78: Comparison of closing price points in selected electricals categories Sainsbury and Tesco 2009 vs 2008 201

Table 79: Numbers of options in selected electricals categories A-H 2009 207

Table 80: Numbers of options in selected electricals categories H-P 2009 208

Table 81: Numbers of options in selected electricals categories P-Z 2009 208

Table 82: Leading grocers health & beauty market shares 2005-2010e 219

Table 83: Shares of grocers health & beauty sales 2005-2010e 220

Table 84: Comparison of opening price points in selected health & beauty categories Asda and Boots 2009 vs 2008 224

Table 85: Comparison of opening price points in selected health & beauty categories Morrison and Sainsbury 2009 vs 2008 224

Table 86: Comparison of opening price points in selected health & beauty categories Superdrug and Tesco 2009 vs 2008 225

Table 87: Comparison of closing price points in selected health & beauty categories Asda and Boots 2009 vs 2008 226

Table 88: Comparison of closing price points in selected health & beauty categories Morrison and Sainsbury 2009 vs 2008 226

Table 89: Comparison of closing price points in selected health & beauty categories Superdrug and Tesco 2009 vs 2008 227

Table 90: Numbers of options in selected health & beauty categories A-S 2009 232

Table 91: Numbers of options in health & beauty categories S-Z 2009 233

Table 92: Leading grocers homewares market shares 2005-2010e 243

Table 93: Shares of grocers homewares sales 2005-2010e 243

Table 94: Comparison of opening price points in selected homewares categories Asda and Debenhams 2009 vs 2008 248

Table 95: Comparison of opening price points in selected homewares categories IKEA, John Lewis and Morrison 2009 vs 2008 249

Table 96: Comparison of opening price points in selected homewares categories Sainsbury and Tesco 2009 vs 2008 249

Table 97: Comparison of closing price points in selected homewares categories Asda and Debenhams 2009 vs 2008 251

Table 98: Comparison of closing price points in selected homewares categories IKEA, John Lewis and Morrison 2009 vs 2008 251

Table 99: Comparison of closing price points in selected homewares categories Sainsbury and Tesco 2009 vs 2008 252

Table 100: Numbers of options in selected homewares categories A-C 2009 258

Table 101: Numbers of options in selected homewares categories C-E 2009 259

Table 102: Numbers of options in selected homewares categories F-Z 2009 260

Table 103: Leading grocers' music & video market shares 2005-2010e 272

Table 104: Shares of grocers music & video sales 2005-2010e 272

LIST OF FIGURES

Figure 1: Factors boosting grocers non-food market share gains 2010 31

Figure 2: Town centre sales growth % 1999-2009 33

Figure 3: Responses for grocers to threats to non-food growth 2010 35

Figure 4: Specialist proposition diversification – HMV 2009 39

Figure 5: Grocers take on pureplays 2010 45

Figure 6: Summary of the UK retail market 2010e 48

Figure 7: Y-o-Y change in spend on food & grocery and non-food 2000-10e 50

Figure 8: Non-food via grocers as a % of their total sales 2000-2010e 52

Figure 9: Estimated grocers non-food space 2004-2009 55

Figure 10: Estimated grocers non-food space allocation 2004-2009 55

Figure 11: Grocers share of non-food sales 2004-2009 & forecast to 2013 59

Figure 12: Asda non-food sales year to December 2005-2010e 79

Figure 13: Asda share of total grocers non-food sales 2005-2010e 80

Figure 14: Asda share of total non-food sales 2005-2010e 80

Figure 15: Morrison non-food sales adjusted to calendar years 2005-2010e 91

Figure 16: Morrison share of total grocers non-food sales 2005-2010e 92

Figure 17: Morrison share of total non-food sales 2005-2010e 93

Figure 18: Sainsbury non-food sales adjusted to calendar years 2005-2010e 104

Figure 19: Sainsbury share of total grocers non-food sales 2005-2010e 106

Figure 20: Sainsbury share of total non-food sales 2005-2010e 107

Figure 21: Tesco non-food sales adjusted to calendar years 2005-2010e 118

Figure 22: Tesco share of total grocers non-food sales 2005-2010e 119

Figure 23: Tesco share of total non-food sales 2005-2010e 120

Figure 24: Split % of grocers non-food sales by sector 2005 and 2010e 146

Figure 25: Clothing & footwear sales & growth at current prices 2000-2010e 152

Figure 26: Clothing & footwear sales at constant 2004 prices 2000-2010e 153

Figure 27: Channel breakdown of clothing & footwear 2004 154

Figure 28: Channel breakdown of clothing & footwear 2009e 155

Figure 29: Grocers share of the clothing & footwear market 2005-2010e 156

Figure 30: Grocers clothing & footwear sales and growth rate 2005-2010e 157

Figure 31: Grocers growth vs total clothing & footwear growth 2005-2010e 158

Figure 32: Womenswear price architecture and choice 2009 169

Figure 33: Childrenswear price architecture and choice 2009 170

Figure 34: Menswear price architecture and choice 2009 170

Figure 35: Grocers clothing & footwear sales and growth 2009-2013e 178

Figure 36: Total electricals sales and growth at current prices 2000-2010e 180

Figure 37: Total electricals sales at constant 2004 prices 2000-2010e 181

Figure 38: Channel breakdown of electricals 2004 183

Figure 39: Channel breakdown of electricals 2009e 184

Figure 40: Grocers share of the electricals market 2005-2010e 186

Figure 41: Grocers electricals sales and growth rate 2005-2010e 188

Figure 42: Grocers growth vs total electricals sales growth 2005-2010e 189

Figure 43: DVD player price architecture and choice 2009 202

Figure 44: Flat screen TV price architecture and choice 2009 203

Figure 45: Hairdryer price architecture and choice 2009 203

Figure 46: Kettle price architecture and choice 2009 204

Figure 47: Microwave price architecture and choice 2009 204

Figure 48: PC price architecture and choice 2009 205

Figure 49: Pay as you go mobile phone price architecture and choice 2009 205

Figure 50: Toaster price architecture and choice 2009 206

Figure 51: Grocers electricals sales and growth 2009-2013e 209

Figure 52: Health & beauty market and growth at current prices 2000-2010e 212

Figure 53: Health & beauty sales at constant 2004 prices 2000-2010e 213

Figure 54: Channel breakdown of health & beauty 2004 214

Figure 55: Channel breakdown of health & beauty 2009e 215

Figure 56: Grocers share of the health & beauty market 2005-2010e 216

Figure 57: Grocer's health & beauty sales and growth rate 2005-2010e 217

Figure 58: Grocers growth vs total health & beauty growth 2005-2010e 217

Figure 59: Mouthwash price architecture and choice 2009 228

Figure 60: Razor blades price architecture and choice 2009 229

Figure 61: Sanitary protection price architecture and choice 2009 229

Figure 62: Shampoo price architecture and choice 2009 230

Figure 63: Toothpaste price architecture and choice 2009 230

Figure 64: Vitamins price architecture and choice 2009 231

Figure 65: Health & beauty market and growth at current prices 2009-2013e 234

Figure 66: Homewares market and growth at current prices 2000-2010e 236

Figure 67: Homewares sales at constant 2004 prices 2000-2010e 237

Figure 68: Channel breakdown of homewares 2004 238

Figure 69: Channel breakdown of homewares 2009e 239

Figure 70: Grocers share of the homewares market 2005-2010e 240

Figure 71: Grocers homewares sales and growth rate 2005-2010e 241

Figure 72: Grocers growth vs total homewares growth 2005-2010e 241

Figure 73: Bathmats price architecture and choice 2009 253

Figure 74: Baking sheets price architecture and choice 2009 254

Figure 75: Chopping board price architecture and choice 2009 254

Figure 76: Corkscrews price architecture and choice 2009 255

Figure 77: Double duvet covers price architecture and choice 2009 255

Figure 78: Dinner plates price architecture and choice 2009 256

Figure 79: Frying pans price architecture and choice 2009 257

Figure 80: Mugs price architecture and choice 2009 257

Figure 81: Grocers homewares sales and growth 2009-2013e 261

Figure 82: Total music & video sales & growth at current prices 2000-2010e 263

Figure 83: Total music & video sales at constant 2004 prices 2000-2010e 264

Figure 84: Grocers share of music & video market 2005-10e 268

Figure 85: Grocers music & video sales 2005-2010e 269

Figure 86: Year-on-year music & video sales growth: grocers vs. total 2005-2010e 271

Figure 87: Grocers music & video sales and growth 2009-2013e 279

Figure 88: Other non-food market and growth at current prices 2000-2010e 281

Figure 89: Other non-food sales at constant 2004 prices 2000-2010e 282

Figure 90: Grocers other non-food sales and growth rate 2005-2010e 283

Figure 91: Grocers growth vs total other non-food sales growth 2005-2010e 284

Figure 92: Grocers other non-food sales and growth 2009-2013e 293

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Specialty Stores Industry: UK Non-food in Grocers 2010

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