‘Discount retailers will drive UK food market growth’

The UK food and grocery market is set to be worth £184 billion (€214bn) by 2016, compared to £156.8 billion (€183bn) in 2011, according to new research by IGD Retail Analysis. And, says the market research firm, discount retailers will be one of the key drivers.

“Despite the extraordinary economic climate and the ongoing uncertainty caused by the eurozone crisis, there are a number of exceptional events in 2012 that could provide opportunities for growth,” says Joanne Denney-Finch, chief executive, IGD. “These include Queen’s jubilee celebrations, the Euro 2012 football championship and the Olympics. During this year’s royal wedding, for example, our ShopperTrack research found there was a spike in shoppers’ interest in food with a local or British theme.

“We still buy most of our groceries at supermarkets and hypermarkets but we are also using different types of stores more often, such as online and convenience. And leading retailers are building their presence in these areas.

“Another growth area is discounters and with people increasingly experiencing a squeeze in incomes, this format will benefit despite counting for a small share of the overall grocery market. Our ShopperTrack data shows a doubling in shoppers using food discounters for their main source of grocery shopping.”