Analyse the structure of the UK supermarket sector Assignment

Break down the structure of the UK store segment - Assignment Example As per the UK Retail Food Sector Market Brief, grocery stores compensated for around 6400 stores with an expected estimation of 98 billion pounds in 2008 (Sainsburys And Waitrose UK Supermarkets Porters 5 Forces Competitive Advantage, 2009). The UK staple market has expanded to 133.3 billion pound in 2007, which represents a 4 percent expansion from that of 2006 (Nicholson, 2008, p. 3-4). The significant general stores that involve the heft of the piece of the overall industry (just about 75 percent) are Tesco, Sainsbury’s, Asda (claimed by American retailer Wal-Mart) and Morrison’s. These are generally known as the â€Å"Big Four†. The other retail chains incorporate Marks and Spencer (UK’s greatest apparel advertiser), Waitrose, Somerfield, Budgens, Netto Iceland, Aldi, and Lidl. Tesco is the biggest non-food showcase chain in the UK which incorporates outlets like Extra, Homeplus, Metro and others. Every one of these retailers centers around some specific market segment. Tesco for example, denotes the center market offering economy just as costly items. Contrasted with Tesco, Sainsbury’s focuses on a little up-showcase while, Asda, a Wal-Mart chain and Morrison’s center a litt le down-advertise. Indeed, even Somerfield work at a similar level as Asda and the others in particular, Budgens, Iceland, Aldi, Netto and Lidl are all cost centered retailers. Waitrose, a John Lewis Partnership, is anyway the most up-showcase retailer among all. Markdown retailing has become a developing division of the basic food item retailing in UK and Tesco advertisement Asda challenge a solid rivalry in this field. Among them, the top position is involved by Tesco, with a piece of the overall industry of 31.4 percent which is very in front of the other retail chains. Second to Tesco is Asda with a piece of the pie of 17.1 percent followed by Sainsbury’s possessing the third position. It covers 15.7 percent of the complete market. Morrison’s rank last among the four with a piece of the pie of 11.2 percent (Nicholson, 2008, p. 6-7). The market structure showed by the