Food Fight!

There are few sectors in British retailing that rival the cut throat nature that is to found amongst the players in the food retailing sector.  Famously robust with suppliers and heartless with each other, the big four retailers continue to battle for their share of the UK’s £150+ billion grocery shop.

Competition is fierce; Tesco, the UK’s biggest retailer with over 2,700 stores is said to be losing ground to its competitors.  Even though special sales promotion campaigns have seen an increase in footfall, revenue has fallen.  Following years of aggressive acquisition of new sites for superstores and its branded Tesco Local the recent promotion of Kevin Grace, its UK Property Director since 2006 to Group Commercial Director, has perhaps signalled an end to that phase of the giant’s growth.

Northern retailing heavyweight, Morrison’s, continues it drive into the south with at least nine new superstores opened in the last quarter.  It will continue to catch up with the competition in the convenience store battle, only two opened so far this year.  A new regional distribution facility at Bridgwater will pick up load though the next quarter.

J Sainsbury has a healthy profile at this point with profits showing a 7% increase to nearly £400 million.  Having been acquisitive in their portfolio development they have added 596,000 sq ft of new space, including seven new stores, 15 extensions and 37 convenience stores, which bring the convenience stores total to 400.  Their property value has increased to an estimated £10.9 billion, as at 1 October 2011.  Yield has remained stable at 4.9%.