Bulletin

Big food stores face five years of decline

A five-year forecast by IGD, the grocery industry research body, anticipates that sales in traditional supermarkets will fall for the next five years as the growing popularity of discount chains and online shopping puts pressure on traditional supermarkets. The IGD figures show that food and grocery sales are expected to rise 13% to £200.6bn between April 2015 and April 2020. Within this, sales for superstores and hypermarkets will fall by 2.9%, reducing their share of the market from 40.4% to 34.7%. In contrast, sales for discounters will rise by 82.2%, raising the sector's market share from 7.2% to 11.6%. Online will also increase its market share from 5% to 8.6% as a result of being the fast-growing segment of the market with projected growth of 92.9%. Sales for convenience stores are projected to rise 17%, down from 27.4% growth in the previous five years, as retailers struggle to find new sites amid increasing competition in the convenience sector.

 

Note: News bulletin content has been provided by a third-party and is not the opinion of Santander.

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