Tesco’s acquisition of convenience store group T&S Stores is set to change the face of neighbourhood retailing in the UK, as small scale, local stores take centre stage and grocery retailing is turned full circle.
According to retail analysts’ Verdict, improved availability of fresh foods, higher store standards and lower prices, will be offset by store closures - some 10,000 over the next five years.
In a new report, Neighbourhood Retailing 2003, Verdict says local specialists will be lost and there will be reduced consumer choice.
The multiples have been faced with two challenges the report says. One - adapting to customer demand for greater convenience in their shopping and eating patterns. And secondly, the constraints imposed by planning restrictions on out-of-town superstore development.
The report goes on to say that Tesco’s takeover of T&S - will impact CTN retailers, food specialists, small grocers, rival c-store operators, off-licences and pharmacies.
Figures from Verdict suggest T&S c-stores average around £16,000 per week, while Tesco’s 120 Express’ each generate some £55,000 a week. Weekly sales at the 113,000 small neighbourhood stores in the UK average £7,000.
Verdict expects a surge in interest from many independent and unaffiliated retailers in joining a symbol group operation, such as Spar, Londis and Costcutter.
For 2002 Verdict calculated Spar’s share of the £41bn neighbourhood market as 4.9%. With the Co-operative Group second, formed by the merger of the Co-operative Wholesale Society with the Co-operative Retail Services business in early 2001. This group claimed a 4.1% share, but with the 600-store Alldays business on board, Verdict expects it to claim outright market leadership in 2003. Third is Londis with a share 3.9%.
Tesco’s neighbourhood share in 2002 was 1.7% according to Verdict, before any adjustment for the 2.2% claimed by T&S Stores.
According to retail analysts’ Verdict, improved availability of fresh foods, higher store standards and lower prices, will be offset by store closures - some 10,000 over the next five years.
In a new report, Neighbourhood Retailing 2003, Verdict says local specialists will be lost and there will be reduced consumer choice.
The multiples have been faced with two challenges the report says. One - adapting to customer demand for greater convenience in their shopping and eating patterns. And secondly, the constraints imposed by planning restrictions on out-of-town superstore development.
The report goes on to say that Tesco’s takeover of T&S - will impact CTN retailers, food specialists, small grocers, rival c-store operators, off-licences and pharmacies.
Figures from Verdict suggest T&S c-stores average around £16,000 per week, while Tesco’s 120 Express’ each generate some £55,000 a week. Weekly sales at the 113,000 small neighbourhood stores in the UK average £7,000.
Verdict expects a surge in interest from many independent and unaffiliated retailers in joining a symbol group operation, such as Spar, Londis and Costcutter.
For 2002 Verdict calculated Spar’s share of the £41bn neighbourhood market as 4.9%. With the Co-operative Group second, formed by the merger of the Co-operative Wholesale Society with the Co-operative Retail Services business in early 2001. This group claimed a 4.1% share, but with the 600-store Alldays business on board, Verdict expects it to claim outright market leadership in 2003. Third is Londis with a share 3.9%.
Tesco’s neighbourhood share in 2002 was 1.7% according to Verdict, before any adjustment for the 2.2% claimed by T&S Stores.
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