Format fragmentation
& brand convergence
in UK and Europe
UK supermarkets have developed from small format town-centre stores to large out-of-town superstores on retail parks but now, as they reach maturity, the model is fragmenting again into a range of store sizes and locations.
In the UK, Tesco continues to be the most advanced in format development with its Extra, Express and Metro stores as well as its general supermarkets and Home Plus stores. Sainsbury’s is close behind with its Local and Central formats. Meanwhile others are at the beginnings of the growth / format trend. Waitrose is moving into a wider non-food offer with its latest link to John Lewis kitchen and home products, as well as developing a smaller high street format and convenience store, but one that encapsulates all its quality and service credentials. Indeed both Waitrose and the Co-op food stores are developing town-centre stores that focus on fresh food rather than packaged and, particularly with Waitrose, have more of a market/delicatessen feel to them. The Co-op meanwhile is undergoing a rebranding exercise that highlights its fair trade and ethical trading stance as part of its in-store displays.
