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Discount Store Wars Case Study

558 Words3 Pages

Discount store wars – reshaping the uk grocery landscape The discounters are extraordinary change in the UK grocery market. Its change become permanent structural rather than temporary. Generally, UK have limited of discounters but after initial change on the increasing number of consumers are turning to Aldi and Lid. The increase of discounters have squeezing into the mass market (Big four - ASDA, Tesco, Sainsbury, and Morrisons) and to some upmarket operators. Its success of the discounters could be seen in three dynamics which consisted on physical expansion, widening customer base, and increasing the average basket size. Shoppers have experiences on decline of average price of basket of everyday essential goods for 0.4% (Butler and Wood, …show more content…

Also, the Big Four will need the structural change either to re-establish their respective competitive position and renew of price investment. Local Sourcing According to Liz Morroell (2010), “local souring can not only be cost effective, it can help build community ties”. The trend have growing recently, with the benefit of international sourcing that many retailers are previously favoured. Currently, it both balance from the international souring to provide the mass volume with retails need the local souring to add a point of difference. Either to meet with consumer’s ethical and environmental demands for the products sources closer to their home. For the business, local sourcing have become the established in sales strategy with locally produced goods. Customers pursue to enjoy on the idea of supporting the local suppliers with the substantial price difference. ‘Cost-effective’ for local souring would be more essential for business than ever. It obviously that local sourcing supply chain is generally shorter with leads to greater certainly and predictability of delivery times – just-in-time

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