Table of Contents
Issues in the Market
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- Main themes
- Definitions
- Financial definitions
- Abbreviations
Future Opportunities
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- Taking on the hard discounters
- A unique experience you only get here
- Selling ‘green’ to the recession-conscious consumer
- Taking care of the earth won’t cost the earth
Market in Brief
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- Economic background
- Implications for the food retailers
- Online
- The majors
- Premium products and ethical attitudes
- Convenience retailing
- Sector size and forecast
Internal Market Environment
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- Key points
- Inflation
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- Figure 1: Inflation: All items and food and drink, 1988-2009 (Q3)
- Industry competition
- Convenience stores
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- Figure 2: UK: C-stores of the leading food retailers, 2008
- Store formats – hypermarkets
- Green issues
- Responses to recession
- Growing online sales
- For the majors only
- Specialists
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- Figure 3: UK online food retailing sales, 2006-08
- Where next?
Broader Market Environment
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- Key points
- Ageing population a major long term problem
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- Figure 4: UK population forecasts, by age group, 2004-14
- The economy
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- Figure 5: UK GDP growth, 1989-2009
- An unusual recession
- Where next?
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- Figure 6: Inflation and wages growth, 2006-09
- Retail sales
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- Figure 7: UK: Year on year retail sales value growth, Jan 2008-Sept 2009
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- Figure 8: UK: Year on year retail sales volume growth, Jan 2008-Sept 2009
- Figure 9: Food price inflation, 2008-09
- Consumer confidence
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- Figure 10: UK: Nationwide Consumer Confidence Index, 2004-09
- Figure 11: Proportion of consumers concerned about their finances, 2008-09
The Market in Context
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- Key points
- Food retailers – Key markets
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- Figure 12: UK: Consumer spending on selected major goods categories, 2004-09 (H1)
- Food – by far the most important sector
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- Figure 13: UK: Spending on food as % all consumer spending, 2004-09
- Channels of distribution
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- Figure 14: Food, drink and tobacco – estimated channels of distribution, 2008
- Non-foods
- Product mix
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- Figure 15: UK: Food retailers, estimated product mix, 2008
- Fuel and other non-retail items
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- Figure 16: UK fuel sales of the major food retailers, 2008
- Food in context – Eating out
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- Figure 17: Spending on food relative to spending on eating out, 2004-09 (H1)
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
- Online – a strength or weakness?
Who’s Innovating?
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- Key points
- Discount brands
- e-commerce
- Loyalty cards
Sector Size and Forecast
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- Key points
- The present
- Food retailers
- Where next?
- Long term trends
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- Figure 18: Food retailers sales, 2004-14
- Winners and losers
Retailer Competitor Analysis
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- Key points
- Leading retailers
- The market leaders
- Hard discounters
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- Figure 19: UK: Leading food retailers, 2008/09
- Evaluation
- Market shares
- Pitfalls
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- Figure 20: Leading UK food retailers, estimated non-retail share of sales, 2008
- Market leaders
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- Figure 21: Leading UK food retailers, market shares, 2008
Retail Advertising and Promotion
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- Key points
- Trends in total spending on advertising
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- Figure 22: Main media advertising: Leading supermarkets, 2005-09
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- Figure 23: UK: Spending on advertising as % of total sales, 2008
- Advertising media
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- Figure 24: Leading retailers’ advertising spend, by medium, 2008
- Figure 25: Leading retailers’ advertising split, by media, 2008
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- Figure 26: UK: Total supermarket spend on advertising, by media, 2005-09*
Brand Elements
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- Key points
- Brand map
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- Figure 27: Attitudes towards and usage of food retail brands, July 2009
- Brand qualities of food retail brands
- Tesco rules the roost
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- Figure 28: Personalities of various food retail brands, July 2009
- Experience of food retail brands
- Tesco most popular, Waitrose an occasional treat
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- Figure 29: Consumer usage of various food retail brands, July 2009
- Brand intentions for food retail brands
- Tesco has highest retention, Somerfield most considered
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- Figure 30: Consideration of various food retail brands, July 2009
- Brand satisfaction for food retail brands
- Top quality, top marks
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- Figure 31: Satisfaction with various food retail brands, July 2009
- Brand commitment to food retail brands
- Repertoire usage is the norm
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- Figure 32: Commitment to various food retail brands, July 2009
- Sainsbury’s
- What the consumer thinks
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- Figure 33: Attitudes towards the Sainsbury’s brand, July 2009
- Somerfield
- What the consumer thinks
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- Figure 34: Attitudes towards the Somerfield brand, July 2009
- Waitrose
- What the consumer thinks
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- Figure 35: Attitudes towards the Waitrose brand, July 2009
- Morrisons
- What the consumer thinks
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- Figure 36: Attitudes towards the Morrisons brand, July 2009
- Lidl
- What the consumer thinks
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- Figure 37: Attitudes towards the Lidl brand, July 2009
- The Co-operative
- What the consumer thinks
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- Figure 38: Attitudes towards the The Co-operative brand, July 2009
- ASDA
- What the consumer thinks
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- Figure 39: Attitudes towards the ASDA brand, July 2009
- Aldi
- What the consumer thinks
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- Figure 40: Attitudes towards the Aldi brand, July 2009
- Marks & Spencer
- What the consumer thinks
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- Figure 41: Attitudes towards the Marks & Spencer brand, July 2009
- Tesco
- What the consumer thinks
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- Figure 42: Attitudes towards the Tesco brand, July 2009
The Consumer – Who Shops Where?
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- Key points
- Primary shoppers
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- Figure 43: Supermarkets used for main grocery shopping, 1998-2009
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- Figure 44: Profile of primary shoppers, July 2009
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- Figure 45: Profile of primary shoppers, 1996, 2006 and 2009
- Secondary shoppers
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- Figure 46: Supermarkets used for top-up grocery shopping, July 2009
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- Figure 47: Profile of secondary shoppers, 2009
What Consumers Look For in a Food Retailer
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- Key points
- The shopper wish list
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- Figure 48: Key attributes of a food retailer, July 2009
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- Figure 49: Shopping for groceries at the supermarket, by supermarkets used for main grocery shopping, July 2009
- Buying online
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- Figure 50: Shopping for groceries online, by supermarkets used for main grocery shopping, July 2009
- Attitudes by secondary shopping habits
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- Figure 51: Most popular shopping for groceries at the supermarket, by supermarkets used for top-up grocery shopping, July 2009
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- Figure 52: Next most popular shopping for groceries at the supermarket, by supermarkets used for top-up grocery shopping, July 2009 (continued)
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- Figure 53: Other shopping for groceries at the supermarket, by supermarkets used for top-up grocery shopping, July 2009 (continued)
Consumer Attitudes Towards Grocery Shopping
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- Key points
- What consumers like and dislike
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- Figure 54: Consumer attitudes to stores and branding, July 2009
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- Figure 55: Grocery shopping attitudes, by age and affluence, 2009
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- Figure 56: Grocery shopping in general, by supermarkets used for main grocery shopping, July 2009
- Consumer attitudes by secondary shopping locations
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- Figure 57: Most popular grocery shopping in general, by supermarkets used for top-up grocery shopping, July 2009
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- Figure 58: Next most popular grocery shopping in general, by supermarkets used for top-up grocery shopping, July 2009 (continued)
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- Figure 59: Other grocery shopping in general, by supermarkets used for top-up grocery shopping, July 2009 (continued)
Aldi (Europe)
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- Figure 60: Aldi (Europe): Sales as share of all food retailers' sales in Europe, 2004-08
- Figure 61: Aldi (Germany): Sales as share of all food retailers' sales in Germany, 2004-08
- Strategic evaluation
- History
- Sales performance
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- Figure 62: Aldi (Europe): Group sales performance, 2004-08
- Store portfolio
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- Figure 63: Aldi (Europe): Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Asda Group Ltd
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- Figure 64: Asda Group Ltd: Sales as share of all food retailers’ sales in UK, 2004-08
- Strategic evaluation
- History
- Financial performance
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- Figure 65: Asda Group Ltd: Group financial performance, 2004-08
- Store portfolio
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- Figure 66: Asda Group Ltd: Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Co-operative Group (Food)
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- Figure 67: Co-operative Group (Food): Sales as share of all food retailers in UK, 2004-08
- Strategic evaluation
- History
- Financial performance
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- Figure 68: Co-operative Group (Food): Group financial performance, 2004/05-2008/09
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- Figure 69: Somerfield: Group financial performance, 2003/04-2007/08
- Store portfolio
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- Figure 70: Co-operative Group (Food): Outlet data, 2005-09
- Retail offering
- Market positioning
- Brands
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- Figure 71: Co-operative Group: Own brands, 2009
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Iceland Foods Ltd
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- Figure 72: Iceland Foods Ltd: Sales as share of all food retailers in UK, 2004-08
- History
- Financial performance
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- Figure 73: Iceland Foods Ltd: Group financial performance, 2004/05-2008/09
- Store portfolio
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- Figure 74: Iceland Foods Ltd: Outlet data, 2005-09
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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J Sainsbury
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- Figure 75: J Sainsbury: Sales as share of all food retailers in UK, 2004-08
- Strategic evaluation
- History
- Financial performance
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- Figure 76: J Sainsbury: Group financial performance, 2004/05-2008/09
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- Figure 77: Sainsbury’s Supermarkets, 2004/05-2008/09
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- Figure 78: Sainsbury’s Supermarkets, Sales trends, 2004/05-2008/09
- Store portfolio
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- Figure 79: Sainsbury’s Supermarkets: Outlet data, 2004/05-2008/09
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- Figure 80: Sainsbury’s Supermarkets: Outlets by size, 2004/05-2008/09
- Retail offering
- Market positioning
- Brands
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- Figure 81: Sainsbury’s Supermarkets: Own brand portfolio 2009
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Marks & Spencer (Food)
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- Figure 82: Marks & Spencer (food): Sales as share of all food retailers in UK, 2004-08
- Recent history
- Financial performance
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- Figure 83: Marks & Spencer (food): Group food sales, 2004/05-2008/09
- Store portfolio
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- Figure 84: Marks & Spencer (food): Outlet data, 2005-09
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce and home shopping
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Wm Morrison Group
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- Figure 85: Wm Morrison Group: Sales as share of all food retailers in UK, 2004-08
- Strategic evaluation
- History
- Financial performance
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- Figure 86: Wm Morrison Group: Group financial performance, 2004/05-2008/09
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- Figure 87: Wm Morrison Group: Sales performance, 2005/06-2008/09
- Store portfolio
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- Figure 88: Wm Morrison Group: Outlet data, 2005-09
- Figure 89: Wm Morrison Supermarkets: Store portfolio by size, 2003 and 2007-09
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Musgrave
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- Figure 90: Musgrave (Republic of Ireland): Sales as share of all food retailers’ sales in Republic of Ireland, 2004-08
- Figure 91: Musgrave (UK): Sales as share of all food retailers’ sales in UK, 2004-08
- Recent history
- Financial performance
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- Figure 92: Musgrave: Group financial performance, 2004-08
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- Figure 93: Musgrave: Estimated retail sales breakdown, by market, 2004-08
- Figure 94: Musgrave: Percentage of retail sales, by brand, 2008
- Store portfolio
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- Figure 95: Musgrave: Outlet data, 2004-08
- Retail offering
- Market positioning/Product offer
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- Figure 96: Musgrave: Fascias, 2009
- Brands
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- Figure 97: Musgrave: Own brand lines, 2009
- Operational issues
- e-commerce and home shopping
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Schwarz Group
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- Figure 98: Schwarz Group: Sales as share of all food retailers in Europe, 2004-08
- Strategic evaluation
- History
- Financial performance
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- Figure 99: Schwarz Group: Estimated Group financial performance, 2005-09
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- Figure 100: Schwarz Group: Proportion of group sales, 2004-08
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- Figure 101: Schwarz Group: Estimated proportion of international sales, by market, 2008/09
- Store portfolio
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- Figure 102: Schwarz Group: Estimated outlet data, 2005-09
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- Figure 103: Schwarz Group: Store formats, 2009
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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SPAR International
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- Figure 104: SPAR (Europe): Sales as share of all European food retailers’ sales, 2004-08
- Strategic evaluation
- History
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- Figure 105: SPAR International: Year of entry, by country
- Financial performance
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- Figure 106: SPAR International: Retail sales by country, 2004-08
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- Figure 107: SPAR International: Estimated European sales exclusive of sales tax, 2008
- European operations
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- Figure 108: SPAR (Austria): Sales as share of Austrian food retailers’ sales, 2004-08
- Figure 109: SPAR (Belgium): Sales as share of all Belgian food retailers’ sales, 2004-08
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- Figure 110: SPAR (Croatia): Sales as share of all Croatian food retailers’ sales, 2004-08
- Figure 111: SPAR (Czech Republic): Sales as share of all Czech food retailers’ sales, 2004-08
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- Figure 112: SPAR (Denmark): Sales as share of all Danish food retailers’ sales, 2004-08
- Figure 113: SPAR (France): Sales as share of all French food retailers’ sales, 2004-08
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- Figure 114: SPAR (Germany): Sales as share of all German food retailers’ sales, 2004-08
- Figure 115: SPAR (Greece): Sales as share of all Greek food retailers’ sales, 2004-08
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- Figure 116: SPAR (Hungary): Sales as share of all Hungarian food retailers’ sales, 2004-08
- Figure 117: SPAR (Ireland): Sales as share of all Irish food retailers’ sales, 2004-08
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- Figure 118: SPAR (Italy): Sales as share of all Italian food retailers’ sales, 2004-08
- Figure 119: SPAR (Netherlands): Sales as share of all Dutch food retailers’ sales, 2004-08
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- Figure 120: SPAR (Norway): Sales as share of all Norwegian food retailers’ sales, 2004-08
- Figure 121: SPAR (Poland): Sales as share of all Polish food retailers’ sales, 2004-08
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- Figure 122: SPAR (Romania): Sales as share of all Romanian food retailers’ sales, 2006-08
- Figure 123: SPAR (Russia): Sales as share of all Russian food retailers’ sales, 2004-08
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- Figure 124: SPAR (Slovenia): Sales as share of all Slovenian food retailers’ sales, 2004-08
- Figure 125: SPAR (Spain): Sales as share of all Spanish food retailers’ sales, 2004-08
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- Figure 126: SPAR (Switzerland): Sales as share of all Swiss food retailers’ sales, 2004-08
- Figure 127: SPAR (UK): Sales as share of all UK food retailers’ sales, 2004-08
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- Figure 128: SPAR International: Sales and outlets, by country outside Europe, 2006-08
- Store portfolio
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- Figure 129: SPAR International: Outlet data, 2004-08
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- Figure 130: SPAR International: Sales per m², by country (Europe), 2008
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- Figure 131: SPAR International: Store formats, 2009
- Retail offering
- Market positioning
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
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Tesco
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- Figure 132: Tesco (Europe): Sales as share of all food retailers’ sales in Europe, 2004-08
- Strategic evaluation
- History
- Financial performance
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- Figure 133: Tesco Plc: Group financial performance, 2004/05-2008/09
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- Figure 134: Tesco (UK): Sales as share of all food retailers in UK, 2004-08
- Figure 135: Tesco (Czech Rep): Sales as share of all food retailers in Czech Republic, 2004-08
- Figure 136: Tesco (Hungary): Sales as share of all food retailers in Hungary, 2004-08
- Figure 137: Tesco (Rep. of Ireland): Sales as share of all food retailers in Republic of Ireland, 2004-08
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- Figure 138: Tesco (Poland): Sales as share of all food retailers in Poland, 2004-08
- Figure 139: Tesco (Slovak Rep): Sales as share of all food retailers in Slovak Republic, 2004-08
- Store portfolio
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- Figure 140: Tesco Plc: Outlet data, 2004/05-2008/09
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- Figure 141: Tesco: UK store formats, 2008/09
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- Figure 142: Tesco: Other European store formats, 2008/09
- Retail offering
- Market positioning
- Brands
- Product offer
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- Figure 143: Tesco UK: Sales by product category, 2007/08 and 2008/09
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Waitrose Ltd
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- Figure 144: Waitrose Ltd: Sales as share of all food retailers in UK, 2004-08
- History
- Financial performance
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- Figure 145: Waitrose Ltd: Group financial performance, 2004/05-2008/09
- Store portfolio
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- Figure 146: Waitrose Ltd: Outlet data, 2005-09
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- e-commerce and home shopping
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Appendix – Who Shops Where?
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- Figure 147: Supermarkets used for main grocery shopping, by demographics, July 2009
- Figure 148: Most popular supermarkets used for top-up grocery shopping, by demographics, July 2009
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- Figure 149: Next most popular supermarkets used for top-up grocery shopping, by demographics, July 2009 (continued)
- Figure 150: Other supermarkets used for top-up grocery shopping, by demographics, July 2009 (continued)
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Appendix – What Consumers Look For in a Food Retailer
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- Figure 151: Key attributes of a food retailer, July 2009
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- Figure 152: Key attributes of a food retailer, July 2009 (continued)
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- Figure 153: Key attributes of a food retailer, July 2009 (continued)
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Appendix – Consumer Attitudes Towards Grocery Shopping
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- Figure 154: Consumer attitudes towards grocery shopping, July 2009
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- Figure 155: Consumer attitudes towards grocery shopping, by demographics, July 2009
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- Figure 156: Consumer attitudes towards grocery shopping, July 2009
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