2004 - a year to remember

If you want a graphic reminder of what is happening in the grocery retail market at the moment, check out our review of The Grocer 33 on p28.

There you will see the first results of a new element we have added to our shopping survey. The Grocer 100, as we are calling it, will provide a long-term view of what’s happening to prices in all the major supermarket chains by tracking the cost of a basket of, you’ve guessed it, 100 commonly-bought grocery lines.

I think our graph on p29 this week says it all. Sainsbury has become much more competitive since Justin King took the helm and, by our measure, prices have tumbled by about 4%. At the same time, Asda and Tesco are slugging it out on price - with the latter having closed any gap on its arch rival over the last six months.

Asda is, on balance, still the cheapest. But it is clearly going to have to fight even harder to retain its title as Britain’s cheapest supermarket.

In light of all of that, is it any wonder that - as we reported last week - deflation in the big four grocery chains is now running at 0.6%?

Deflation and the increasing competition between the big retailers has been one of the key themes of 2004.

And given that this is our last issue of the year, it is only right that we take a look back at how the past 12 months have shaped up. Our review of the year, starting on p37, only serves to remind me that it has been a hell of a year. You will undoubtedly be split over the question of whether 2004 was a year to remember or one to forget. But given all the consolidation, upheaval, intrigue, pressure and plotting that we have reported and analysed, I don’t think any of you could describe the past 12 months as being dull!

What concerns me as we start thinking about what 2005 may have in store for grocery is that I don’t believe there has ever been as much uncertainty in the market as there is today. Still, one thing you can be certain about is that The Grocer will be there helping you make sense of it all. For now, though, we are taking a short break. You can still catch the latest news as it happens on thegrocer.co.uk and we will be back on January 8 with all the latest news and views.

All that is left is for me to wish you all a merry Christmas and - here’s hoping! - a prosperous New Year.