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Price War Now Biting Margins Of All The Big Four Supermarkets, Says Euromonitor

Published on Jun 21 2015 11:24 AM in Retail tagged: price war / Big Four / UK Supermarkets

Price War Now Biting Margins Of All The Big Four Supermarkets, Says Euromonitor

Global market-research firm Euromonitor says that lower inflation is increasing pressure on the UK's big four grocery retailers and is now affecting their profit margins.

The comments follow on from British supermarket chain Sainsbury's reporting a sixth straight drop in quarterly same-store sales last week, with sales at stores open at least a year falling by 2.1 per cent, excluding fuel, in the 12 weeks to 6 June.

“Not much surprise there," commented Daniel Latev, research manager at Euromonitor International, on the supermarket's recent sales performance.

Earlier this month, Kantar released its quarterly figures, showing Sainsbury's market share has declined on a quarterly basis. "From the four big UK supermarkets, only Morrisons showed a marginal improvement, however, they are recovering from a really big decline," Latev stated.

Lower inflation – particularly in food prices – is increasing pressure on the big four grocery retailers "already under extreme pressure from smaller players" in the market – and particularly discounters, he explained.

"The price war is now starting to bite the profit margins of all of the big retailers which particulate, and it will be a war of attrition until Tesco decides to pull the brakes."

© 2015 European Supermarket Magazine – your source for the latest retail news.

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