Grocers’ sales of non-food merchandise have continued to rocket in the past year, up 11.8% to £18.7 billion according to Mintel estimates, making this one of the most dynamic market segments in retail. Sainsbury’s is targeting the clothing and footwear market with its TU range, while Asda has launched furniture and Tesco has set up its Direct catalogue business, taking on Argos in general merchandise from electricals to sofas.

Despite this continuing boom, the supermarkets also face challenges for the future. Among them are how they can overcome the increasing limitations on out-of-town store expansion and the potential impact of the Competition Commission inquiry into the grocery market on non-foods.