Summer Project – BTEC Level 3 Business – Year 12 – Supermarket Wars
TASK – Read the article about Asda and other supermarkets.
1. Carry out research into the supermarket wars and the changes in patterns of shopping habits since
the credit crunch.
2. Write up a report investigating what is meant by the supermarket wars and changing shopping habits
of the UK consumer.
Include in your report the main changes in market share of supermarkets in the UK. Who were the
winners and losers? Identify and explain the main reasons for the changes. Explain how the
shopping habits of the UK consumer have changed since the credit crunch.
Your report should be a minimum of 3 sides of A4 paper. You will be assessed on the depth of your
research, the quality of analysis and written communication.
DUE IN: First lesson in September
Article: Supermarket Wars: Asda In Market Share Slide – Sky News
Industry figures show a slump in sales at
Asda as supermarkets continue to compete
fiercely for UK market share.
In the latest reports, Kantar, a market research
company stated, Asda's market share was
measured at 16.5% - down from 17.1% a year
ago. That left it level with its biggest rival for
the title of the country's second-largest chain,
Sainsbury's. Kantar said Asda's sales fell
3.5% in the 12 weeks to 21 June.
Out of the so-called big four chains only
Morrisons grew sales, by 0.6%.
Sales fell by 1.3% at both Tesco and Sainsbury’s, taking their market shares down to 28.6% and 16.5%
respectively as both continue efforts to cut costs and boost their offerings to counter the challenge posed
by hard discounters Aldi and Lidl.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said the pair were
continuing to take share away from the major chains. He added: "The two discounters increased their
sales by 15.4% and 9.1% respectively.
"Aldi reached a new high with a 5.5% share of the market while Lidl, also showing continued growth,
rose to 3.9%.
"Waitrose also grew ahead of the market, with sales increasing by 1.2%, moving to a 5.1% share."
Asda reported its first full-year decline in underlying sales in February,. with its chief executive Andy
Clarke warning then that the industry must be prepared for two more years of turmoil. A major problem
for the chains has been deflation within the grocery market at a time of heavy promotional activity,
which has hit profits. Kantar measured grocery inflation at -1.7% in the latest 12 week period - meaning
shoppers are continuing to pay less for goods than they did a year ago though the rate of decline has
eased.