More than their
fair share?
We have seen how supermarkets use online channels to muscle in on non-food sectors and as they move into bigger premises they have invested in higher-margin product categories such as clothing & footwear and homeware in-store as well.
Asda, with its George clothing brand, has become one of the market leaders in clothing with 4.3% of the market. In childrenswear, George and Tesco rank second and third in the sector with a 16.7% combined market share.
Meanwhile, Tesco has exploited the opportunities in non-food over the last decade and Sainsbury’s is catching up fast, while Waitrose is using its connection with John Lewis to enhance its offer. Though
none of the supermarkets is a market leader in any one non-food sector, they pose a considerable threat as their combined share is significant – 11.5% of non-food in 2009 and growing. This influence becomes evident when comparing supermarkets’ share of individual sectors’ shoppers.
For instance, 65% of shoppers use supermarkets for their purchases of personal care items. This is a mature non-food sector for supermarkets, but recently they have extended their ranges, stretching their price architecture to include premium mass-market brands and developing own-brand ranges. This, combined with the convenience of shopping for everything in one’s weekly shop, is delivering a substantial share of the sector. Tesco, Asda, Sainsbury’s and Morrisons account for 67% of all spending on health & beauty products. Supermarkets are extending their reach into health now, moving heavily into pharmacy products and services as well.
