Analyse the structure of the UK supermarket sector Assignment

Investigate the structure of the UK store area - Assignment Example As indicated by the UK Retail Food Sector Market Brief, grocery stores compensated for around 6400 stores with an expected estimation of 98 billion pounds in 2008 (Sainsburys And Waitrose UK Supermarkets Porters 5 Forces Competitive Advantage, 2009). The UK basic food item advertise has expanded to 133.3 billion pound in 2007, which represents a 4 percent expansion from that of 2006 (Nicholson, 2008, p. 3-4). The significant grocery stores that involve the majority of the piece of the pie (very nearly 75 percent) are Tesco, Sainsbury’s, Asda (possessed by American retailer Wal-Mart) and Morrison’s. These are regularly known as the â€Å"Big Four†. The other retail chains incorporate Marks and Spencer (UK’s greatest apparel advertiser), Waitrose, Somerfield, Budgens, Netto Iceland, Aldi, and Lidl. Tesco is the biggest non-food showcase chain in the UK which incorporates outlets like Extra, Homeplus, Metro and others. Every one of these retailers centers around some specific market segment. Tesco for example, denotes the center market offering economy just as costly items. Contrasted with Tesco, Sainsbury’s focuses on a little up-showcase while, Asda, a Wal-Mart chain and Morrison’s center a little down-advertise. Indeed, even Somerfield work at a similar level as Asda and the others to be specific, Budgens, Iceland, Aldi, Netto and Lidl are all cost centered retailers. Waitrose, a John Lewis Partnership, is anyway the most up-showcase retailer among all. Rebate retailing has become a developing division of the staple retailing in UK and Tesco advertisement Asda challenge a solid rivalry in this field. Among them, the top position is involved by Tesco, with a piece of the pie of 31.4 percent which is very in front of the other retail chains. Second to Tesco is Asda with a piece of the pie of 17.1 percent followed by Sainsbury’s possessing the third position. It covers 15.7 percent of the absolute market. Morrison’s rank last among the four with a piece of the pie of 11.2 percent (Nicholson, 2008, p. 6-7). The market structure displayed by the