Shopping Malls lower prices to cater for economic crisis
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Terrific New eBook On How To Broil Delicious Foods Food shoppers across the UK are even more inclined to head for cheaper shopping malls as inflation on food prices has risen by another 8% since the beginning of the year, 2008. The latest TNS Worldpanel grocery market share figures, for the 12 weeks ending 25th January 2009, indicated retailers’ premium ranges are suffering while ‘value’ ranges are doing really well. This is a clear sign that people are opting more for the much cheaper and more reasonable products in their supermarkets instead of spending out and going for the more reasonably priced goods.
Discount supermarket, Aldi saw an incredible 24.1% growth during the credit crunch whilst ASDA and Morrisons saw growth of just 8.1% and 9.7% respectively. So where does this leave our leading supermarkets like Tesco and Sainsbury? Well, I am sure that they are still making plenty of money but considering the current economic climate it really is essential for major companies like these to lower prices and contribute to helping people around the country. Supermarket prices rising also means that other businesses will be affected. For example, catering companies from around the country will have to buy their produce at a more expensive rate which will directly affect their own profit margins. Caterers across the country will have to adjust their shopping lists and look for other alternatives. Making food more expensive for the public is not the way to help the country climb its way out of the credit crunch and supermarkets with more reasonable and cheaper food are really making the most of it as they are catering to people’s financial restraints.
Tesco’s market share slipped back as it lost out to rivals but it still reported growth of 30.7%. Frozen food retailer Iceland had a really strong Christmas with growth of 14%. Again, this is down to the fact that they have been lowering prices to suit the budget of the UK.
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