The leading supermarkets now take £1 in every £10 spent on non-food retail products in the UK.
So says Verdict Research in a new report, Non-food in UK Grocers, which also predicts that grocers’ non-food sales will rise further, from £17.5b in 2006 to £23.6b in 2011 – a 34.4% increase.
The report points out that Tesco and Asda continue to lead the assault, but adds that Sainsbury and Morrison are set to ramp up their non-food space over the next five years. And it says that restrictions on superstore development are seeing Tesco and Asda driving alternative channels for their non-food expansion. This, says Verdict, is key because it means the retailers can enlarge the scale of ranges and introduce new categories.
“Alongside the growth of online retailing, the expansion of grocers into non-food is set to be the most fundamental challenge facing traditional UK retailers over the next five years,” concludes senior retail analyst at Verdict Nick Gladding.