Grocery store saturation in the UK ‐ the continuing debate

Abstract

Examines recent developments in the UK grocery industry, particularly regarding the location, size and type of new large stores. Shows that reductions are occurring in the volume of new development compared with the early 1990s. Suggests that this appears to be due to two factors: first, the approach of grocery store saturation in many areas; and, second, changes in government planning policy which are restricting the choice of locations suitable for new store development. Companies are now finding that investing in overseas ventures and/or refurbishing existing stores can be a more profitable strategy than developing new stores. Also discusses the influence of competition from limited line discount stores. Finally, states that saturation is essentially a local phenomenon, and that further research into store openings and closures at local scale is necessary to demonstrate its presence.

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