Competition between supermarkets.

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To: Mr Elkon                        From: Karan Varma

Date: 10/6/2004

Competition between supermarkets

To Mr Elkon,

1.1          In this report I will discuss the major factors of supermarket. I will compare each major issue from they market share value to the numbers of employees they each have. In this essay I will talk about the following supermarkets

  • Tesco
  • Asda
  • J Sainsbury
  • Safeway
  • Morrisons

1.2          Tesco are the biggest superstore, as they own more than one-fourth percentage of the market share. On Thursday, 21 December 2000 Asda had taken over J Sainsbury as the second biggest market retailer. It has gone good to bad for J Sainsbury, as J Sainsbury's was the UK's number one supermarket until the mid 1990s, when Tesco overtook it. Safeway did try to retaliate to regain they position as number two, that they tried to rebrand itself, with a focus on quality and range.

1.3          Reports from the BBC website published on the 21st December said, “Safeway is the UK's fourth-biggest grocer, but it has been capturing an ever-increasing market share.”

Talking about competition the top 4 supermarkets have been separated into two sections, the top and the low competition.  

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2.1       In 1995 it shows that J Sainsbury was number one, 5 years later they dropped to place the differences in market share to Tesco today is a high 19.8%. The reason why this could be is that they decide Focus on quality rather than price, which the public would rather buy something that less cheap, so they could save they money for something else. Another point, which I find really shocking, is that J Sainsbury owns 390 more stores than Asda but still have 0.8% less market share value than Asda. A reason for this ...

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