In the UK the retail grocery market is concentrated with seventy-five percent market share in the hands of just four supermarket chains. The remainder is scattered over hundreds of outlets.
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This report overviews the characteristics of UK retail outlets and how best to place US products in the UK market.

Overview

The overall UK grocery market was valued at ?133.3 billion ($213.28 billion) in 2007, an increase of 4.0 percent on 2006.

Groceries account for 12.8 percent of total household spending in the UK, making it the third largest area of expenditure (the largest is housing, and the second largest is transport).

Food and grocery expenditure accounts for 49p in every £1.00 of retail spending (excluding restaurants).

20p in every £1.00 spend in food and grocery is spent in convenience stores.

There are 95,585 grocery stores in the UK. These are split into 4 sectors that are defined as follows:

Supermarket chains: supermarkets have a sales area of 3,000-25,000 square feet and sell a broad range of grocery items; superstores are defined as stores that have a sales area above 25,000 square feet, selling a broad range of grocery and non-food items.

Convenience stores: stores with sales area of less than 3,000 square feet, open for long hours, and selling products from at least 8 different grocery categories.

Traditional retail and developing convenience stores: sales area of less than 3,000 square feet, such as news stands, green-grocers, liquor stores and gas stations.

Alternative channels, e.g., internet or catalog home shopping, farmers’ markets and other produce markets, vending machines.

Read full report at:

http://www.flex-news-food.com/pages/21112/Retail/UK/uk-retail-market-brief-2008.html