How strong really is the UK recovery?

wotsthat

antrobus wrote: »

I was actually looking at the latest Grocer 33. And yes, I did spot that Tesco had only won 4 times in the last 28 weeks, compared to 24 wins for ASDA. But then both Sainsburys and Morrisons have 0 wins and are £s pricier than Tesco. So if Tesco "prices aren't attractive" presumably the prices at Sainsburys and Morrisons must be 'positively ugly'.:)

Sainsburys strategically have removed themselves from worrying about basket prices. Asda are cheaper because they work on a lower margin than Sainsburys and Tesco will accept. Tesco are yet to see the light but Sainsburys are now in the value for money rather than cheapest price area i.e. feed yourself for less (than you might have expected at Sainsburys). Morrisons are dire - agreed.

antrobus wrote: »

Sainsburys is currently loosing market share, it's just loosing less market share than Tesco, ASDA or Morrisons, and thus may even regain the No2 slot sometime this year.

http://www.kamcity.com/namnews/asp/newsarticle.asp?newsid=73336

Sainsburys regained the No. 2 spot last year. Looking at your link Asda have pipped them for market share in the latest data 16.9% vs 16.8%

2014 is going to be the year of space - there's too much and managing the disposal is going to be testing.

michaels

Asda are cheapest overall however they do it by being generally cheap rather than via having the best promotions. I shop Sainsburys (more and more carefully, generally sticking to high volume products that they think are price comparable) as my main supermarket but more than 50% of my spend is on deep discount promotions for which Morrisons is much better than Asda, Tescos or the 'discounters.

Edit I wonder if Tescos are suffering worst with the super large store format because more of their non-food has gone online than the other retaillers?

Graham_Devon

wotsthat wrote: »

Sainsburys strategically have removed themselves from worrying about basket prices.

Doesn't seem like it to me. Brand match? Not only is it all over the TV about how they are cheaper than their rivals (with the usual star to denote a catch!) but you also get pieces of paper every time you shop there offering you say 8p off your next shop.

At least it seems it's always some ridculously small amount it would be embarrasing to actually claim. Different baskets may show different!

Tesco's are, of course, the same, but doesn't seem to me that Sainsburys have moved away from it. It appears more in the face than ever.

wotsthat

Graham_Devon wrote: »

Doesn't seem like it to me. Brand match? Not only is it all over the TV about how they are cheaper than their rivals (with the usual star to denote a catch!) but you also get pieces of paper every time you shop there offering you say 8p off your next shop.

At least it seems it's always some ridculously small amount it would be embarrasing to actually claim. Different baskets may show different!

Tesco's are, of course, the same, but doesn't seem to me that Sainsburys have moved away from it. It appears more in the face than ever.

It doesn't need to cost a lot to have the good things in life. You can now Live Well For Less with Sainsbury's, for less than you thought.

Which isn't quite the same as claiming to be cheaper than their rivals.

I'm using Sainsburys more and more. Brand match has been successful as it provides reassurance that you won't get ripped off buying brands (where JS have been perceived expensive). The 'By Sainsbury' brand is one of the fastest growing grocery brands and the quality is ahead of their immediate peers. Apparently the loyal JS shoppers are now even more doggedly loyal than they used to be.

My last brand match voucher was for £1.01 - didn't feel the slightest bit embarrassed handing it over. I wouldn't feel like that about 8p either. The paper can be annoying - JS have invested heavily in the till voucher machines - seems like they want to sweat the assets!

wotsthat

michaels wrote: »

Edit I wonder if Tescos are suffering worst with the super large store format because more of their non-food has gone online than the other retaillers?

People are getting fatter and less active too. I don't think they can really be bothered to trudge around the really big stores.

Good news for efficient stores like Aldi although I still think Asda have the edge when it comes to attracting the obese.

mayonnaise

Graham_Devon wrote: »

At least it seems it's always some ridculously small amount it would be embarrasing to actually claim. Different baskets may show different!

What would be the minimum amount to overcome your embarrassment to claim?

Kennyboy66

You don't work for tesco do you ?

Its pretty clear from Kantar's data that the losers from the discounters are Tesco, Asda and Morrisons.

Waitrose have increased their market share - because they are not competing on price.

I'd give Tesco huge credit for the 4 big decisions they got right, but the advantages they get from them erode over time.

They are biggest on-line because they were years ahead - they had a first mover advantage to build market share but they are facing more and more competition.

I'd find it impossible to believe that their on-line market share will be 50% in 3 years and fully expect that their total market share will be closer to 25% than 30% in 10 years time.

Even Tesco's admit they have used the UK as a cash cow to fund disasterous overseas expansion and starved the UK stores of investment.

Ocado isn't profitable (I would have liked to have bought the shares though) - but then online grocery shopping probably is barely profitable for Tesco either.
How can it be ? A tesco employee walks round a normal store (in most cases) picks your goods, and then someone jumps in a van and delivers it to your door for as little as £3.

smartn

I'm of the opinion there is not really much to choose from in terms of price or quality at Asda, Tesco, Morrison or Sainsbury. Although all have a declining market share Lidl and Aldi have a very small base to grow from and the reality is that they are not taking masses of revenue from the big 4 but that will increase over time.

Whether that will have an effect in terms of profitability at the big 4 or not I'm not sure as the population is growing so may offset some of the actual loss in market share.

Tesco are making a move into online and if they can get it right could start taking sales from Amazon etc but they are a way off this yet I think. Personally, I would rather Tesco make online sales than Amazon due to the fact they employ more in the UK and pay tax but there online still feels clunky in comparison to Amazon. Tesco have the advantage of being able to deliver to store etc.

My personal experience with Lidl has been the quality of fresh produce can vary significantly from week to week, I don't know about Aldi.

grizzly1911

I did nip into the big T for some stationery today. I noticed their TV tech area had been shrunk noticeably. Believe this is new strategy which is a shame.

I am not so sure about their online non grocery stuff. It never really seems competitive and feels more like T Bay with all the "suppliers".

Last timer I was in Sainsbury's was on holiday in the Autumn. It was expensive but I wasn't doing a proper shop so hard to tell.

Asda and Morrison have got grim stores IMO.

Kennyboy66

smartn wrote: »

Tesco are making a move into online and if they can get it right could start taking sales from Amazon etc but they are a way off this yet I think. Personally, I would rather Tesco make online sales than Amazon due to the fact they employ more in the UK and pay tax but there online still feels clunky in comparison to Amazon. Tesco have the advantage of being able to deliver to store etc.

Tesco Direct has been going for almost 8 years. It doesn't make a profit and its going to be pretty difficult to take on amazon.