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Business Organisation and Policy: UK Food Retail Market - Assignment Example

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It can be observed in the report that the six main superstore retail chains are becoming very successful in their respective business and they have taken hold of almost the entire food retail market of the country. Small retailers are gradually losing their market share to these big retail stores…
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Business Organisation and Policy: UK Food Retail Market
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Download file to see previous pages This is due to the fact that the main superstore chains have started to produce their own brand of products at fairly reasonable prices than those of the other branded products in that same category. 
Suppliers are struggling with the retailers and trying to find out alternative means of reaching to the consumers so that they can also maintain their necessary profit level which is needed to survive in the market.
The UK growing market concentration in the food sector has become a major area of concern for the producers and the consumer groups as the main superstore store retail chains are the sources for the consumers to buy all their grocery stuff (UK Grocery Retailing 2010).s
For the retailers of UK, the area of growth value for the stores is expected to remain slow, as there is a lot of competition on price pressures and the presence of other successful retailers in the market.
This has forced the retailers to apply various strategies of differentiation so that they can have a larger share of the market. The differentiation strategies are applied based on the target market each superstore chain caters to (Food Retail Market is increasingly in demand in UK 2010).
The success rate of the supermarket chains have been quite high in the retail sector and this has caused the gradual erosion of food retailers that are operating on an independent basis, the health stores, and the farm food stores are eroding, and all these are losing their market share (Burts and Sparks 2003)
This situation tends to increase the value of those retailers who actually import all these raw materials and then supply them to the businesses who require these materials for their organic products. The import cost is usually high and it is feasible for the retail outlets to buy out the materials from these small retail outlets whose basic business is in the import of such products. ...Download file to see next pages Read More
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