Deprecated: Function create_function() is deprecated in /home2/dpieurope/public_html/wp-content/plugins/youtube-channel-gallery/youtube-channel-gallery.php on line 1223

Deprecated: File class-phpmailer.php is deprecated since version 5.5.0! Use wp-includes/PHPMailer/PHPMailer.php instead. The PHPMailer class has been moved to wp-includes/PHPMailer subdirectory and now uses the PHPMailer\PHPMailer namespace. in /home2/dpieurope/public_html/wp-includes/functions.php on line 5573
Stealth Competition in the UK Grocery Sector - Decision Processes International
Notice: Trying to access array offset on value of type bool in /home2/dpieurope/public_html/wp-content/plugins/wp-social-sharing/includes/class-public.php on line 81

Notice: Trying to access array offset on value of type bool in /home2/dpieurope/public_html/wp-content/plugins/wp-social-sharing/includes/class-public.php on line 81

Notice: Trying to get property 'session_id' of non-object in /home2/dpieurope/public_html/wp-content/plugins/ninja-forms-legacy/deprecated/classes/session.php on line 122

Notice: Trying to get property 'session_id' of non-object in /home2/dpieurope/public_html/wp-content/plugins/ninja-forms-legacy/deprecated/classes/session.php on line 123

Stealth Competition in the UK Grocery Sector


Notice: Trying to access array offset on value of type bool in /home2/dpieurope/public_html/wp-content/plugins/wp-social-sharing/includes/class-public.php on line 81

We believe that every robust strategy process must look beyond the conventional competitive environment and look at what may disrupt your business arena. DPI has named this competitive force the Stealth Competitor. The Stealth Competitor – or disrupter – has the ability to enter an industry and dramatically change the way the game gets played. The disruption caused by Aldi and Lidl to the UK grocery sector is a very recent example of how the Stealth Competitor has wreaked havoc on an industry.

For the “big 4” (Sainsbury’s, Asda, Tesco and Morrison’s), their Stealth Competitors didn’t even appear on their radar. Let’s take a closer look at how Aldi and Lidl have re-shaped the grocery sandbox and changed the rules of the game:

The rise of the LAD’s (limited assortment discounter):

Despite their strong market position, the big 4 have experienced significant declines in recent years. Tesco has dominated the media in recent months with the departure of Chief Executive Phillip Clarke in July. A further investigation into misreported profits has culminated in their Chairman announcing his departure this week. Shoppers meanwhile have started to turn to the LAD’s such as Aldi and Lidl.

Both Aldi and Lidl entered the UK market in the early 1990s and after 2 decades of moderate success, they seem to have finally built a killer proposition that resonates with UK shoppers. This has contributed to stellar growth since 2010. Lidl now has more than 600 stores in the UK and Aldi more than 500. Aldi expects to generate record sales of £7bn this year and Lidl UK expects to enjoy a similar turnover.

Impressively, whilst Aldi’s share of market is still modest, it has managed to reach No 1 in YouGov’s list of favourite brands, overtaking John Lewis and Samsung. It also expects to announce a 25% jump in annual sales when it issues its full-year figures shortly. In comparison, October 2014’s Kantar figures show Tesco’s sales are down 1.5% year on year; Sainsbury’s down 4% and Morrison’s down 4.6%.

How the two Stealth Competitors, Aldi and Lidl have turned the grocery sector upside down:

The big 4 have been playing to one set of rules; providing choice, a multi-channel shopping experience, and customer-focussed add-ons such as loyalty schemes. They have built a price strategy centered around defending themselves from each other. They have invested heavily in price-matching schemes, as a cornerstone of their strategy to compete on price with each other.

Behind the scenes, the discount retailers have been changing the rules in the Grocery Sandbox. They have been truly customer-centric in building their offer. They are reshaping the way we shop, and we like it!

There are several key tenets to their strategy:

1. Becoming “more British”

Their success has partly been the result of a wide-ranging customer review into customer perceptions commissioned in 2010, which showed for instance that shoppers wanted them to become “more British”.

They now source all their fresh meat, milk and eggs from Britain.

2. A more limited offering

The secret to their business model is having a limited range of goods. While Aldi sells 1,500 lines, a Tesco supermarket can sell 40,000. Ronny Gottsclich, the UK boss of Lidl puts it succinctly : “If you [and another customer] don’t know each other, would you like to pay for his choice of a different type of water? If you go to another retailer that has got 20 different types of water, someone has got to pay for that space, someone has got to pay for that rent.”

Whilst breadth of choice is a unique selling point for the big hypermarkets and superstores, not only is the customer paying for this, but to some extent they are bamboozled by it. Sales are declining in the large format stores; there is too much choice. For cash and time-strapped shoppers, the simplicity of Aldi and Lidl is appealing.

3. Capitalising on longer and more short-lived trends

They have also shrewdly cottoned on to trends, such as locally-sourced produce and producing dinner-party show-stoppers at bargain prices. The fashionable and decadent steak of the moment is Wagyu, and Aldi sell Waygu sirloin for just £6.69.

In our sport-obsessed summer, with the Tour de France in Britain, they launched a limited range of high-end bikes and a £65 GPS watch that measured your heartbeat, location, as well as the time.

4. An assurance of quality at the lowest price

Perhaps most importantly, they have seduced the shopper by offering random luxury goods, such as lobster tail and prosecco at incredibly affordable prices. This has created a viral buzz about the new Aldi and Lidl. In addition they carry international lines that have growing appeal. Whether it is extra virgin olive oil, parma ham or mascarpone, the prices are significantly lower than those in both Waitrose or Tesco. They have also recently introduced fine wines into London stores in a bid to attract more affluent shoppers.

DPI’s Stealth Competitor Process enables leaders to flush out these hidden threats. The LAD’s are becoming seemingly unstoppable. They have changed the game, they are dictating the new rules of engagement in the sandbox. The Big 4 and Waitrose were so busy watching each other they missed the Stealth Competitors. This is a good example of why the DPI Strategic Thinking process includes focus on understanding your sandbox and the entrant of Stealth Competitors.

Segment Description:

The UK grocery market was worth £174.5bn in the year to April 2014, and is growing at roughly 3% pa. Sales are split as follows:

42% hypermarkets and superstores 20% smaller supermarkets
21% convenience stores
6% discounters such as Aldi and Lidl 4.5% online

Remainder – other retailers
(Source – http://www.igd.com/our-expertise/Retail/retail-outlook/3371/UK-Grocery-Retailing/)

Grocery sales are dominated by the “big 4”: Tesco, Asda, Sainsbury’s and Morrison’s who had a combined market share of 73.6 per cent of the market in the 12 weeks ending 30 March 2014.

68 comments on “Stealth Competition in the UK Grocery Sector”

  1. Marylyn
    Marylyn:

    I like the valuable information you supply on your articles.
    I’ll bookmark your weblog and test again right here regularly.
    I am fairly certain I will learn plenty of new stuff right right here!
    Good luck for the next!

  2. xe88
    xe88:

    If you would like to obtain much from this article then you have to apply such strategies to your won web site.

    my homepage :: xe88

  3. Daniel
    Daniel:

    I know this if off topic but I’m looking into starting
    my own blog and was curious what all is required to get
    set up? I’m assuming having a blog like yours would cost a pretty penny?
    I’m not very internet savvy so I’m not 100% sure. Any tips or advice
    would be greatly appreciated. Many thanks

  4. ok388 malaysia
    ok388 malaysia:

    You really make it appear so easy together with your presentation but I find this topic to be
    really one thing that I believe I would by no means understand.
    It kind of feels too complex and very large for me.
    I’m taking a look forward for your subsequent put up,
    I’ll try to get the dangle of it!

    Feel free to surf to my web site :: ok388 malaysia

  5. chengdian.cc
    chengdian.cc:

    First off I would like to say great blog! I had a quick question which I’d like to ask if you do not mind.
    I was interested to know how you center yourself and clear your head prior to writing.
    I’ve had a tough time clearing my thoughts in getting my ideas
    out. I truly do take pleasure in writing but it just seems like the first 10 to 15 minutes tend to be lost
    just trying to figure out how to begin. Any suggestions or hints?

    Appreciate it!

    Also visit my page :: chengdian.cc

  6. playboy2 test id
    playboy2 test id:

    Superb blog! Do you have any tips for aspiring writers?

    I’m hoping to start my own website soon but I’m a little lost on everything.
    Would you propose starting with a free platform like WordPress or go for
    a paid option? There are so many options out there that
    I’m totally confused .. Any recommendations? Thank you!

    Have a look at my webpage: playboy2 test id

  7. 918kiss-m.com
    918kiss-m.com:

    I don’t know whether it’s just me or if perhaps everybody else encountering issues with your site.
    It appears like some of the text in your content are running off the screen. Can somebody
    else please comment and let me know if this is happening to them as well?
    This may be a problem with my web browser because I’ve had this happen previously.
    Appreciate it

    My site :: sky1388 download ios – 918kiss-m.com

  8. download aaa1188
    download aaa1188:

    Do you have a spam problem on this site; I also
    am a blogger, and I was curious about your situation; many of us
    have created some nice practices and we are looking to
    trade methods with other folks, be sure to shoot me an e-mail if interested.

    my web-site :: download aaa1188

  9. xe88sg.com
    xe88sg.com:

    Hi there, always i used to check web site posts here early in the morning, for the
    reason that i enjoy to gain knowledge of more and more.

    Feel free to visit my web-site; demo lionking888 (xe88sg.com)

  10. 918kaya
    918kaya:

    Hi there! I’m at work surfing around your blog from my new iphone 3gs!
    Just wanted to say I love reading your blog and look
    forward to all your posts! Carry on the outstanding work!

    Here is my blog; 918kaya

  11. Xee88 Apk
    Xee88 Apk:

    An impressive share! I have just forwarded this onto a friend who has been doing a little homework on this.
    And he actually ordered me lunch because I stumbled upon it for him…
    lol. So allow me to reword this…. Thank YOU for
    the meal!! But yeah, thanx for spending time to talk about this topic here on your web page.

    Stop by my web-site :: Xee88 Apk

  12. xe88 apk
    xe88 apk:

    Spot on with this write-up, I absolutely think this website needs
    far more attention. I’ll probably be returning to read more, thanks for the
    info!

    my webpage :: xe88 apk

  13. www.jlxxsb.com
    www.jlxxsb.com:

    I’m curious to find out what blog system you’re using?
    I’m experiencing some minor security problems with my latest blog and I’d like to find something
    more safeguarded. Do you have any recommendations?

    Also visit my homepage … http://www.jlxxsb.com

  14. grazebo.com
    grazebo.com:

    Excellent items from you, man. I have keep in mind your stuff previous to
    and you are simply too magnificent. I actually like what you
    have obtained right here, certainly like what you are saying and
    the way in which through which you assert it.
    You’re making it enjoyable and you continue to take care
    of to keep it wise. I cant wait to learn far more from you.
    This is really a wonderful site.

    Also visit my website – grazebo.com

  15. kebe.top
    kebe.top:

    I have been exploring for a little bit for any high quality articles or blog posts on this kind of space .
    Exploring in Yahoo I eventually stumbled upon this site.
    Studying this info So i’m satisfied to exhibit that I’ve an incredibly excellent uncanny
    feeling I found out exactly what I needed. I most unquestionably
    will make sure to don’t omit this web site and give it a look regularly.

    Visit my site … kebe.top

  16. Tangela
    Tangela:

    Awesome website you have here but I was wondering
    if you knew of any community forums that cover the same topics discussed here?

    I’d really love to be a part of group where I can get opinions
    from other experienced people that share the same interest.
    If you have any suggestions, please let me know.
    Bless you!

  17. Baccarat99
    Baccarat99:

    Hey there! I’ve been following your website for some time now and finally got the courage to go ahead and give you a shout out from Kingwood Texas!
    Just wanted to mention keep up the great work!

  18. Tammi
    Tammi:

    When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment
    is added I get several emails with the same comment.
    Is there any way you can remove me from that service?
    Bless you!

  19. tinyurl.com
    tinyurl.com:

    Its like you read my mind! You appear to know a
    lot about this, like you wrote the book in it
    or something. I think that you could do with some
    pics to drive the message home a little bit, but other than that,
    this is magnificent blog. An excellent read. I will definitely be back.

  20. asmr and
    asmr and:

    Hi, i think that i noticed you visited my web site thus i got here
    to go back the choose?.I’m trying to find things
    to improve my site!I suppose its ok to make use of some of your ideas!!

  21. is ps4 games
    is ps4 games:

    Greate post. Keep posting such kind of info on your site.

    Im really impressed by your blog.
    Hello there, You’ve done an excellent job. I’ll definitely digg it and in my view
    recommend to my friends. I am confident they’ll be benefited from this
    web site.

  22. there asmr
    there asmr:

    Wow, wonderful weblog format! How lengthy have you been blogging for?
    you make running a blog glance easy. The overall look of your web site
    is great, as smartly as the content material!

  23. Heidi
    Heidi:

    I’m very pleased to discover this page. I wanted to thank you for ones time due
    to this fantastic read!! I definitely appreciated every little
    bit of it and i also have you saved as a favorite to check out new
    stuff in your blog.

  24. Elica
    Elica:

    I do not even know how I ended up here, but I thought this post was good.
    I do not know who you are but certainly you’re going to a famous blogger if you aren’t already 😉 Cheers!

  25. Ofelia
    Ofelia:

    naturally like your web-site but you have to test the spelling on quite a few of your
    posts. Several of them are rife with spelling issues and I in finding it very
    troublesome to tell the truth on the other hand I’ll definitely come back again.

  26. Armando
    Armando:

    I just couldn’t depart your website prior to suggesting that
    I really loved the standard info an individual provide to your guests?
    Is going to be again regularly to check up on new posts

  27. Talia
    Talia:

    Fantastic web site. Lots of helpful info here. I’m sending it to several friends ans additionally sharing in delicious.
    And of course, thanks in your effort!

  28. Loyd
    Loyd:

    I really like your blog.. very nice colors & theme.
    Did you design this website yourself or did you
    hire someone to do it for you? Plz answer back as I’m looking to design my own blog and would like
    to find out where u got this from. cheers

  29. Karry
    Karry:

    hey there and thank you for your information –
    I have definitely picked up anything new from
    right here. I did however expertise several technical issues using this site, since I experienced to reload the website many times previous to I could get it to
    load properly. I had been wondering if your web hosting is OK?
    Not that I’m complaining, but slow loading instances times will often affect your placement in google and can damage your
    high quality score if ads and marketing with Adwords.
    Well I am adding this RSS to my email and could look out for a
    lot more of your respective interesting content.
    Make sure you update this again very soon.

  30. Micki
    Micki:

    I believe what you wrote made a lot of sense. But, think on this, what if you were to
    write a killer title? I ain’t suggesting your content isn’t solid., however suppose you added something that makes people
    want more? I mean Stealth Competition in the UK Grocery Sector
    – Decision Processes International is a little plain. You
    could look at Yahoo’s front page and watch how they create
    post titles to get people interested. You
    might add a video or a related picture or two to grab
    readers excited about everything’ve written. Just my opinion, it
    might bring your posts a little livelier.

  31. Ginger
    Ginger:

    Greetings! Very useful advice within this post! It’s the little changes that produce the most significant changes.

    Thanks a lot for sharing!

  32. Edwina
    Edwina:

    Howdy! I could have sworn I’ve been to this blog before but after browsing through some of the
    post I realized it’s new to me. Anyhow,
    I’m definitely glad I found it and I’ll be book-marking and checking back
    often!

  33. Ariel
    Ariel:

    I think what you posted was actually very reasonable.

    But, what about this? what if you typed a catchier post title?
    I mean, I don’t want to tell you how to run your website, but what if
    you added a headline to maybe get a person’s attention?
    I mean Stealth Competition in the UK Grocery Sector – Decision Processes International is
    a little vanilla. You should peek at Yahoo’s front
    page and see how they create post titles to get viewers interested.
    You might add a video or a pic or two to grab people excited about what you’ve written. Just
    my opinion, it could make your posts a little bit more interesting.

  34. Tanisha
    Tanisha:

    Write more, thats all I have to say. Literally, it seems as though you
    relied on the video to make your point. You obviously know what youre
    talking about, why waste your intelligence on just
    posting videos to your site when you could be giving us
    something enlightening to read?

  35. FC 24 coins hack
    FC 24 coins hack:

    I’m impressed, I have to admit. Rarely do
    I encounter a blog that’s both educative and amusing, and let me tell you, you have hit the nail on the head.
    The problem is an issue that not enough men and women are
    speaking intelligently about. I’m very happy I stumbled across this during my search for something relating to this.

Leave a Reply