Food will be one of the fastest-growing retail sectors in the UK in 2009, according to a research report by Verdict.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The survey out yesterday (28 January) predicted that the food and grocery sector will grow by 3.1% in 2009, against a 0.6% decline across the retail market as a whole.
“Inflation driving higher prices, the fact food is an essential purchase and more consumers eating at home, have all boded well for the market,” said Matthew Piner, an analyst at Verdict. “Moreover, food is the one area in which shoppers are likely to continue permitting themselves the occasional, more expensive ‘treat’.”
Verdict added that discounting is being carried out as grocers get “aggressive”, while inflation is set to fall but will still be a key driver of prices.
Asda has become the latest grocer to announce ambitious expansion plans, in yet another indication that food and grocery is proving much more resilient to the recession than other retail sectors.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataYesterday, Asda announced plans to create around 7,000 new jobs in 2009. Sainsbury’s has also announced its intention to create around 2,000 jobs in the next year.
Morrisons, meanwhile, is to create 5,000 new jobs, as part of its target of increasing selling space by one million square feet over three years. Even Tesco, which has seen sales growth slow recently, is planning to create up to 10,000 positions.
“For the likes of Asda, expansion is becoming not only a sensible move, but an essential one in order to avoid losing ground to competitors,” added Piner. “The convenience-driven nature of food shopping makes store penetration a huge factor and well-located stores, established now, will continue to trade strongly long after the recession is over.”
