Retailing Market Value in the UK Free Essay Example, 2250 words

According to Raphael Moreau, Retailing Analyst "Diversifying into convenience stores is on the agenda for the UK s top hypermarket chains because this retail format offers good growth prospects (Anonymous, 200). Convenience stores have increased their share of the UK food retailing market from 20% to 21.9% between 1999 and 2003. Clearly, these stores are appealing to UK consumers, thanks to their convenient locations and extended opening hours. Hypermarket retailers want to make sure they don t miss out on this growing area of the UK market. " High Street convenience stores are also particularly attractive to hypermarket retailers, due to strict planning rules restricting the opening of new out-of town hypermarkets. Euromonitor International believes that this trend is likely to intensify in the next five years. The Competition Commission, which considers convenience retailing to be a separate sector from supermarket retailing, has also encouraged this trend since supermarket chains can diversify into convenience retailing without facing inquiries from the Commission about the market s level of concentration (Raphael Moreau, 2004). Looking to the future, Euromonitor International s latest research forecasts that UK retail sales will increase by just over 11% in real terms between 2004 and 2008, a moderate increase resulting from strong downward pressure on prices, especially within food retailing, combined with rising interest rates leading to higher debt levels. We will write a custom essay sample on Retailing: Market Value in the UK or any topic specifically for you Only $17.96 $11.86/pageorder now This would represent a slowdown compared to the strong performance recorded in 2003 and 2004, of 3.8% and 3% respectively, even though growth could be maintained by the dynamism of convenience stores/small grocers (Raphael Moreau, 2004). Gap (originally The Gap) is a San Fransisco-based apparel and accessories retailer founded in 1969 by Donald Fisher and Doris Fisher. The Fishers opened their first shop because they had been frustrated with the lack of decent customer service and fashionable styles at other retailers.