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  • Unit 32 Food Retailing Assignment (GC01595)
Unit 32 Food Retailing Assignment

Unit 32 Food Retailing Assignment (GC01595)

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Table of Contents

Task 1Report on structure, size and product types of the food retailing sector in the UK.

P1-describe the size and structure of the food retailing sector

P2 Describe the types of products offered by food retailers.

Task 2: Report on development in the consumer market and their impact on food retailing.

P3- Explain how developments in the consumer market have impacted food retailing.

Task 4: Report on the importance of health and safety regulation and their impact on the food retailing

P4 Explain how health, safety and hygiene legislation has impacted food retailers.

P5 Explain how food retailers are meeting their social, ethical, environmental and corporate social responsibilities.

Reference.

P1-Describe the size and structure of the food retailing sector

Structure of the food retailing sector in the UK

There are several kinds of outlets in  UK food retailing that are described below:

Cooperatives- These are farms, companies and businesses that are owned and run by several owners or partners. The partners or owners distribute the profits that they obtain from the market. This type of business in the United Kingdom sells domestic foods such as packaged products, vegetables and fruits, drinks and tined products. Co-operative also has its own branded foods known as the cooperative’s food.

Superstores- A superstore is a big store. Many of the superstores in the UK are food-chain retailers such as Tesco, Sainsbury, Morison, Waitrose and ASDA. Superstores have diversified products. For example, electrical products, clothing and groceries are sold in superstores. Superstores also sell an extensive diversity of goods, for example, computing, sporting products and clothing.

Specialist outlets– These types of shops specific kinds of goods and products. This kind of business includes Subway, McDonald’s, Pet A Manger, Greggs. Subway is a specialist in sandwiches. Greggs is a specialist in bakery goods and sweets and sandwiches. Pret A Manger is a specialist for sandwiches, McDonald is a specialist for fry chicken and burgers.

Forecourts: Forecourts are those which operate near petrol stations or large buildings. This type of business is owned by an individual person. Therefore, these companies are known as individually owned organizations. These companies have fewer services. These types of companies are locally owned businesses, corner stores.

Online retailers: These are shops that sell goods and products through the internet or online. These retailers can be accessed by mobile apps or the internet. This has been the simplest process of buying goods as it is the most suitable process for consumers for buying goods seating at home. Companies like ASDA and Tesco apply this aspect, whereas they promote consumers to buy goods from their websites seating at home.

Size of the food retailing sector in the UK

Food retail sector: In recent years, growth in the UK market has been hard-fought, as lower prices have generally enabled shoppers to spend less on groceries. While we can attribute part of this to the rise in popularity of discounters, actions by the main multiples to improve their pricing and defend market share have also made an impact. Looking ahead, IGD is predicting the UK food and grocery market to grow by 9.9% over the next five years to £196.9bn as the sector works to resolve some challenges. Hypermarkets and supermarkets are set to see a stabilization in sales by 2021, as large stores evolve to reflect the changing needs of shoppers. Online will remain the foremost growing channel at +68% over the next five years. By 2021, discounters will be worth £24.9bn, although growth will be more measured than in previous periods.

Convenience will remain the third fastest-growing sector, yet will also see a slowdown in expansion. Online will remain the fastest-growing grocery channel as new players continue to provide shoppers with different choices. Already in 2016 Aldi has launched Special Buys and wine online, and just last week Amazon Fresh made its much-anticipated debut in the UK. At the same time, existing players are working on improving the quality of their services, with better search functions and improvements to product descriptions and taxonomy making online shopping easier. Rapid physical expansion by food and high street discounters will fuel growth in this channel.

2016 value (£bn)2021 value (£bn)Changes in value % 2016-2012
Hypermarkets16.516.6+0.2
Supermarkets86.687.3+0.8
Convenience37.541.9+11.7
Online10.517.6+68.3
Discounter19.924.9+39.5

 

Market share and turnover:

According to a study conducted by Gladding (2016), the supermarket market share value in 2016 is £86.6 billion which might be increased to £87.3 billion by 2021. The discounters market share value is £17.9 billion in 2016 which might be increased to £24.9 billion by 2021. The market share value of hypermarkets is £16.5 billion in 2016, which can be increased to £16.6 billion by 2021. The market share value of online retailers is £10.5 billion in 2016which may be increased to £17.6 billion by 2021. The market share value of convenience stores in 2016 is £37.5 billion which may be increased to £41.9 billion by 2021.

The number of outlets: There are more than 6,000 drink and food manufacturing companies in the United Kingdom. There are about 1,000 food companies that specialize in providing fast food in the UK. There are about 57,000 superstores in the United Kingdom. There is approximately 9,000 large super-markets, hypermarkets as well as supermarkets in the United Kingdom……………..

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