‘Space race’ to acquire market share decelerates: In the face of continued economic difficulties, 2012 saw the major UK supermarket operators apply the brakes as the ‘space race’ to acquire market share through an expanding store network slowed, bringing with it stability and a generally healthier market.
‘Big 4’ continue to dominate: The dominance of the Big 4 (Tesco, Asda, Sainsbury’s and Morrisons) continued with a combined market share of over 76%. Morrisons conceded 0.4% of its market share.
Little and often: Supermarket shopping patterns are seeing a shift away from the one, big weekly trolley shop towards more frequent, smaller shopping trips. In 2009, 39% of UK consumers shopped for food three or more times a week. This has now risen to 49% as ‘little and often’ shopping patterns emerge.
Demand for supermarkets remains exceptionally high: More than £1.2bn of stock was traded in 53 transactions during the year at an average net initial yield of 4.93%.
Institutions queue up to buy: The market was dominated by institutions which last year accounted for 90% of all purchases.
An increase in funding deals: Forward funding/commitments were up from 14% in 2011 to 29% of total transactions by value in 2012.
Source : IPD