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Sections |
| Title | Starting Page | Number of Pages |
|---|
| Introduction<Br><Br><paragraph>Verdict Research: Neighbourhood retailing is outperforming all other locations. The location offers substantial opportunities, but the dynamics of the market are changing. As the market consolidates, growth is becoming more e | 0 | 1 |
| Introduction<Br><Br><paragraph>Verdict Research: Neighbourhood retailing is outperforming all other locations. The location offers substantial opportunities, but the dynamics of the market are changing. As the market consolidates, growth is becoming more e | 0 | 1 |
| CHAPTER 0 | 23 | 1 |
| CHAPTER 1 EXECUTIVE SUMMARY | 24 | 6 |
| Key findings | 24 | 6 |
| CHAPTER 2 KEY ISSUES | 30 | 14 |
| Changing shopper demographic | 31 | 1 |
| Cater for more shopping missions and broaden range architectures | 31 | 1 |
| Private Label | 32 | 1 |
| Demand for top-up shopping | 32 | 1 |
| Fresh Foods | 32 | 1 |
| Desire for convenience | 33 | 1 |
| Food-to-go | 33 | 1 |
| Meal Solutions | 33 | 1 |
| Market consolidating | 34 | 1 |
| Competition intensifying | 35 | 1 |
| Store environments | 35 | 1 |
| Consumer re-education via marketing | 36 | 1 |
| Consolidation to impact future growth opportunities | 36 | 1 |
| Future for independents and symbol groups | 36 | 1 |
| Symbol groups can no longer take advantage of fragmented market | 37 | 1 |
| Multiples reaching saturation | 37 | 1 |
| Fewer new entrants will slow growth despite Waitrose s expansion | 37 | 1 |
| Flexible formats | 38 | 1 |
| Flexible propositions | 38 | 1 |
| Symbol groups boost loyalty | 38 | 1 |
| Diversify & Differentiate | 39 | 2 |
| CTNs and off-licences lose out to bigger players | 41 | 1 |
| Onerous legislation will hit sales and profits | 41 | 1 |
| Dwindling need for CTNs & Off-licences | 42 | 1 |
| Only highly differentiated food specialists will survive | 42 | 2 |
| CHAPTER 3 NEIGHBOURHOOD MARKET | 44 | 9 |
| Supermarkets and symbol groups pressurise unaffiliated independents | 44 | 1 |
| Neighbourhood capitalises on changing shopping patterns | 44 | 1 |
| Supermarkets and symbol groups continue to exert dominance | 45 | 3 |
| Majority of neighbourhood sales through convenience stores | 48 | 1 |
| Food Specialists see neighbourhood sales decline | 48 | 2 |
| Multiples and symbol groups slow decline in space | 50 | 3 |
| CHAPTER 4 NEIGHBOURHOOD V OTHER LOCATIONS | 53 | 12 |
| Sales growth driven by multiples and symbol groups | 55 | 1 |
| Neighbourhood outperforming all other locations | 56 | 1 |
| Neighbourhood retailing is resilient, but fortunes are mixed | 56 | 1 |
| Growth still reliant on the multiples | 57 | 1 |
| Opportunistic retailers help slow declines in neighbourhood space | 58 | 1 |
| Space in neighbourhood retailing falling at slower rate than total retail | 58 | 2 |
| Boosted by product mix and expansion of multiples | 60 | 2 |
| Vacant stores are snapped up quickly | 62 | 3 |
| CHAPTER 5 C-STORES AND SMALL GROCERS | 65 | 8 |
| Despite continued consolidation, market remains fragmented | 65 | 3 |
| Unafilliated independents continue to be recruited by symbol groups | 68 | 1 |
| Smaller Grocers The Co-operative stamps authority and supermarkets exert pressure | 68 | 1 |
| Convenience retailing will benefit from changing shopping habits | 69 | 1 |
| Constrained household budgets make value key | 69 | 1 |
| Growing importance of fresh food and food-to-go | 70 | 1 |
| C-stores expand on to forecourts | 70 | 1 |
| Waitrose sensibly commits to convenince store expansion | 71 | 2 |
| CHAPTER 6 C-STORES: OTHER SYMBOL GROUPS | 73 | 7 |
| How Costcutter / Nisa-Today s relationship evolves will significantly impact on Nisa | 73 | 1 |
| Prevalence of wholesalers with a symbol group offer could decline sharply | 74 | 1 |
| Fresh produce and own brands become vital aspects of propositions | 74 | 1 |
| Best-one (Bestway) | 75 | 1 |
| Key Store (JW Filshill) | 76 | 1 |
| Lifestyle (Landmark Group) | 76 | 1 |
| Mace (Palmer & Harvey McLane) | 77 | 1 |
| Nisa-Today s | 77 | 3 |
| CHAPTER 7 C-STORES ON FORECOURTS | 80 | 11 |
| Still hold opportunities for convenience and food service brands | 80 | 1 |
| After decline petrol station numbers stabilise | 80 | 1 |
| Modern forecourt convenience stores continue to break old stereotypes | 81 | 1 |
| Motorists shop spend was resilient despite high fuel prices in 2008 | 81 | 1 |
| Convenience store and oil company partnerships still being pursued | 82 | 1 |
| Service station food-to-go remains a growth area | 83 | 1 |
| Franchise arrangements increasingly prevalent | 83 | 1 |
| BP, Shell and Total continue to prospect for new dealers | 83 | 1 |
| BP franchise model successful template for others | 83 | 3 |
| Store numbers | 86 | 1 |
| BP has strongest shop brand on UK forecourts | 87 | 1 |
| Shell develops private label food-to-go range | 88 | 1 |
| Esso partnership with Tesco leaves it well placed | 88 | 1 |
| Total trio of formats | 89 | 1 |
| Almost all Texaco sites are dealer-owned | 89 | 1 |
| Smaller fuel retailers partner with branded stores | 89 | 2 |
| CHAPTER 8 TRADITIONAL FOOD SPECIALISTS | 91 | 11 |
| Niche players set to capitalise in struggling market | 91 | 1 |
| Food specialists continue to struggle | 92 | 1 |
| Niche operators that diversify will prosper | 93 | 1 |
| Future for the sector looks challenging | 94 | 1 |
| Multiples and symbol groups encroach on specialists territory | 95 | 2 |
| Food specialists sales continue to be pressurised by multiples | 97 | 2 |
| Bakers best perfoming food specialists | 99 | 1 |
| Space and stores continue to contract as competition intensifies | 100 | 2 |
| CHAPTER 9 TRADITIONAL OFF-LICENCES | 102 | 8 |
| Off-licences face uncertain future | 102 | 2 |
| Specialist off-licences under pressure from all sides | 104 | 1 |
| Proposed minimum unit pricing will be of no benefit to off-licences | 104 | 1 |
| Specialists need to utilise their strengths to advantage | 105 | 1 |
| Problem areas: shallow range, lack of knowledge and prices not low enough | 105 | 1 |
| Struggles for survival | 106 | 1 |
| Bargain Booze | 107 | 1 |
| Laithwaites | 108 | 1 |
| Majestic Wine | 108 | 1 |
| Oddbins | 109 | 1 |
| Wine Cellar | 109 | 1 |
| CHAPTER 10 NEIGHBOURHOOD PHARMACIES | 110 | 13 |
| Pharmaceutical market defies downturn | 110 | 2 |
| Local chemists seek to capitalise | 112 | 1 |
| Deregulation allows growth for supermarkets and independents alike | 112 | 1 |
| Smaller independents struggle against supermarkets and abolishment of PPA | 112 | 1 |
| Swine Flu injects boost | 113 | 1 |
| Pharmacies compete with GPs | 113 | 4 |
| Key Messages | 117 | 1 |
| Growth fuelled by acquisitions, very little new space opened | 117 | 1 |
| Repositioned offer to strengthen presence | 117 | 1 |
| Rebranding proves success | 117 | 3 |
| Key Messages | 120 | 1 |
| Lloydspharmacy builds one of strongest local community pharmacy chains | 120 | 1 |
| Primary care service boosts credentials and revenues | 121 | 1 |
| Aims to improve convenience of stores | 121 | 1 |
| Current trading satisfactory | 121 | 1 |
| Needs to strengthen brand | 122 | 1 |
| Emergence of grocers in pharmacy sector is biggest threat | 122 | 1 |
| Waitrose strengthen ties with Boots | 122 | 1 |
| CHAPTER 11 TRADITIONAL CTN OPERATORS | 123 | 6 |
| CTNs face increasingly uncertain future | 123 | 2 |
| Increasingly competitive marketplace | 125 | 1 |
| Diversifying offer essential for survival | 125 | 1 |
| Provide service to encourage loyalty and spend | 126 | 1 |
| CTNs need to adapt store environments following tobacco legislation | 126 | 1 |
| Consolidation in newspaper distribution will see more CTNs close | 127 | 2 |
| CHAPTER 12 FORECAST | 130 | 6 |
| Multichannel retailers will prosper as online spending grows | 130 | 1 |
| Sales growth to rise as multiples and symbol groups take over | 131 | 2 |
| Convenience stores will prosper in increasingly competitive market | 133 | 1 |
| Declines in space and stores will slow as market consolidates | 134 | 2 |
| CHAPTER 13 COMPANY DATA ANALYSIS | 136 | 9 |
| Expansion of The Co-op and Tesco makes them big winners | 136 | 2 |
| Growth driven by expansion of The Co-op and multiples | 138 | 1 |
| The Co-operative maintains dominance through acquisition | 139 | 3 |
| The Co-operative overtakes Tesco at top of convenience market | 142 | 2 |
| The Co-operative continues to lead the way | 144 | 1 |
| CHAPTER 14 | 144 | 1 |
| CHAPTER 14 THE CO-OPERATIVE GROUP | 145 | 14 |
| Acquisition of Somerfield | 146 | 1 |
| Somerfield s recent history | 146 | 1 |
| The Co-op now has most stores in UK | 147 | 1 |
| The Acquisition of Somerfield - what it means for The Co-operative | 147 | 1 |
| Further expansion will be difficult short term | 147 | 1 |
| Greater efficiencies and benefits of economies of scale | 147 | 1 |
| Will leverage skills | 148 | 1 |
| New routes to market and broader geographical reach | 148 | 1 |
| Broadens customer base | 148 | 1 |
| A defensive move | 148 | 1 |
| Steps up promotional activity | 148 | 1 |
| Trading performance boosted by Somerfield acquistion | 149 | 2 |
| Expansion set to slow after acquisition provides a boost | 153 | 1 |
| Store analysis - Before Somerfield acquisition | 153 | 1 |
| Store Analysis - After Somerfield acquisition | 154 | 1 |
| The Co-operative experiences big gains in share | 155 | 2 |
| Record refurbishment | 157 | 1 |
| Price harmonisation essential | 157 | 1 |
| Competition intensifies | 157 | 1 |
| Ethical reputation is valued by customers | 158 | 1 |
| Common branding | 158 | 1 |
| CHAPTER 15 COSTCUTTER | 159 | 11 |
| Reduces joining costs for retailers | 160 | 1 |
| Launches consumer loyalty scheme | 160 | 1 |
| Biggest TV campaign | 160 | 1 |
| Nisa-Today s rejects Bibby Line bid | 160 | 1 |
| Costcutter extends deal with Nisa-Today s | 160 | 1 |
| Merger speculation rumbles on | 161 | 1 |
| Recruitment of new members boosts performance | 161 | 7 |
| Needs value perception among consumers | 168 | 1 |
| Beat This slogan | 168 | 1 |
| Costcutter finds it hard to deliver consistent shopping experience | 168 | 1 |
| Cannot force pricing architecture | 168 | 1 |
| Fresh and local produce can distinguish Costcutter from competitors | 168 | 1 |
| Flexibility gives Costcutter a platform to maximise growth | 169 | 1 |
| Costcutter should continue to expand on forecourts | 169 | 1 |
| Competition | 169 | 1 |
| CHAPTER 16 MUSGRAVE | 170 | 15 |
| Invests to create more robust offer | 171 | 1 |
| Aims to reduce cost base | 172 | 1 |
| Fresh food continues as important aspect of Musgrave offer | 172 | 1 |
| Backroom merger for Budgens, Londis and Musgrave | 172 | 1 |
| Investment depresses operating profits | 173 | 5 |
| Musgrave changes format mix | 178 | 1 |
| Strong sales growth leads to share uplift | 179 | 3 |
| Resilient performance | 182 | 1 |
| Investing in itself is a sensible strategy | 182 | 1 |
| The group is also right to sacrifice profits | 182 | 1 |
| Improvements to the supply chain are very important | 182 | 1 |
| Fresh food will drive growth | 183 | 1 |
| Single entity synergies | 183 | 1 |
| Challenge to keep Budgens strong performance going | 183 | 1 |
| Consistent store standards imperative | 183 | 2 |
| CHAPTER 17 PREMIER (BOOKER) | 185 | 10 |
| Management upholds solid trading performance | 186 | 1 |
| Launches new formats and broadens business | 186 | 1 |
| Strategy for growth | 186 | 1 |
| Three phases for completion by 2010 | 186 | 1 |
| Strategies for growth boost trading performance | 187 | 1 |
| Premier in the neighbourhood | 188 | 2 |
| Continues upwards trend as more stores join symbol | 190 | 3 |
| Fresh products key | 193 | 1 |
| Staples like bread and milk will draw footfall | 193 | 1 |
| Standards must be kept high | 193 | 1 |
| Booker shoppers could become Premier members | 193 | 1 |
| More marketing wouldn t go amiss | 194 | 1 |
| CHAPTER 18 SAINSBURY | 195 | 10 |
| Restructures c-store estateProduct development | 196 | 1 |
| Then expands once more | 196 | 1 |
| Experiments with five formats | 196 | 2 |
| Neighbourhood | 198 | 1 |
| Expansion to slow after acquisitions boost | 199 | 2 |
| Sainsbury enjoys consistent growth over the last five years | 201 | 2 |
| Making Sainsbury s Great Again achieves aim | 203 | 1 |
| Focus on convenience | 203 | 1 |
| Realigns prices | 203 | 1 |
| Market conditions help expansion | 203 | 1 |
| Behind The Co-operative and Tesco | 204 | 1 |
| CHAPTER 19 SPAR | 205 | 12 |
| Works hard to improve offer | 206 | 1 |
| Store of the Future rollout | 206 | 1 |
| Range change | 206 | 1 |
| Improves own brand | 207 | 1 |
| Wholesalers aim to generate loyalty among their members | 207 | 1 |
| SPAR promotes offer more prominently | 207 | 1 |
| Currency fluctuations affect performance heavily | 208 | 3 |
| Greater competition reduces retailer membership | 211 | 2 |
| Negatively affected by exchange rate | 213 | 2 |
| Currency fluctuations hide a strong performance | 215 | 1 |
| Store of the Future | 215 | 1 |
| Marketing improves brand awareness | 215 | 1 |
| Loyalty generation sensible | 216 | 1 |
| Needs aggressive recruitment | 216 | 1 |
| SPAR to thrive | 216 | 1 |
| CHAPTER 20 TESCO | 217 | 10 |
| Continued expansion increasingly meets resistance | 218 | 1 |
| Tesco appeals Competition Commission s findings | 218 | 1 |
| Tesco continues strong expansion programme across all channels. | 218 | 1 |
| Resistance to new stores from local traders and residents increases | 218 | 1 |
| Tesco continues to dominate | 219 | 2 |
| Pace of expansion remains high | 221 | 2 |
| Growth accelerates as space grows and offer evolves | 223 | 2 |
| Tesco continues to lead in UK retail | 225 | 1 |
| Convenience best option if Competition Commission findings become law | 225 | 1 |
| Former pubs could be snapped up | 225 | 1 |
| Heightened resistance in rural areas | 225 | 1 |
| Symbol groups key advantage over the supermarket | 226 | 1 |
| CHAPTER 21 GLOSSARY | 227 | 2 |
