retail

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Tesco Compared to Sainsburys

There was a time when the market leader in UK supermarkets was Sainsbury’s but in the past few years Tesco has shot ahead. Some of the reasons for Tescos dominance Clever Marketing. I am always impressed by how Tesco’s knows exactly how to get me to go shopping there again. If I haven’t been shopping for a  few weeks, they will send vouchers giving me £5 off my next £30 shop. The really clever thing is that usually I spend £20-£25 on a shop at Tesco. Not only do they…

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Spending on Internet to Dominate Retail

Statistics from Interactive Media in Retail Group (IMRG) show that online retail spending increased by 75% in 2007. Disappointing retail sales on the high street have been offset by bumper online sales. IMRG predict that by 2018, internet sales could reach 50% of all retail spending. In particular the internet has squeezed profit margins of low cost retailers. If you want to succeed on the high street, there is a need to offer something different, a niche, highly valued product. Therefore, brand names like Marks and Spencers may continue to…

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Costs and Benefit of Tescos

Readers Question Is tesco’s power a net benefit or a cost to the wider economy? In the UK, Tesco have over 32% of market share for supermarkets. It is a similar situation as the US, where supermarkets are dominated by Walmart. Tesco is now the largest private sector employer in Europe. (working for Tesco) It is an emotive issues whether Tesco is Good or bad for society and consumers. Benefits of Tesco 1. Economies of Scale. The large size of the firm means that it can benefit from economies of scale in areas…

Does the UK Need More Supermarkets?

Does the UK Need More Supermarkets?

The Future? Tesco’s is the UK’s leading supermarket, with an estimated market share of 31.5% Yesterday, the competition commission suggested that the Supermarket’s dominance was not due to unfair trading practices. After a long investigation of the  British supermarket industry, the Competition Commission have concluded: Supermarkets are not competing unfairly The dominance of big supermarkets does not preclude smaller grocery shops  from competing The planning process for new supermarkets is too restrictive – What is needed is for a streamlined procedure to enable the…