Comparative analysis of food retailers growth strategies in the UK Research Paper

Comparative analysis of food retailers growth strategies in the UK - Research Paper simulationTraill (1998) asserts that the food retail sector is characterized by competitive and innovative retailers who have remain resilient in spite of economic d giveturns. There are extravagantly stable street independent retailers, but most of them cope to survive due to the rapidly changing business environment and changes in consumer behaviour (Henry, 2011).There is show up of high concentration of economic power by the industries in the food retail chain amongst the primary producers and consumers (Henry, 2011). The supermarket model in the UK is characterized by self-service shopping with various departments that handle the production and dissemination of the food grocery items. The sector has made savings through elimination of the traditional wholesaler, and ensuring direct bring home the bacon from the manufacturing industries to regional distribution centers, and finally to the s uperstores that are conveniently located near the customers (Department of Trade and Industry, 2004). The lower unit costs and high net margins associated with supermarkets have increased their market share and contributed to spiral growth. many of the features that are evident in the spiral growth of the leading supermarket retailers such as Tesco and Wal-Mart include the high costs of market entry due to the lower expenses. For instance, Wal-Marts Every Day Low price model ensures savings made in the supply chain activities are passed on to consumers through price reductions thus contributing to high sales volumes and significant market growth.Accordingly, the spiral growth is characterized by own labeling that return the highest contribution margins to the retailers. The retailers firebrands are capable of competing effectively with the manufacturers brands through packaging and shelf placement. The own labels do not only enhance the revenues, but also improve the retailer b rand