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Retailers Under Pressure As Superstores Move into Home Dec
Listed under: News
Published: Monday, April 26, 2010
Plans by some of the country's leading supermarkets to capitalise on the growing interest in home décor could have an adverse affect on craft shop owners this year, seeing them struggle to hold their own in what is already a very competitive marketplace, according to a recent report from Reuters.
Tesco, Asda and Sainsburys are just some of the outlets currently believed to be moving into the non-food arena this year, with recent reports from market research company, Verdict, predicting that their share of the market could reach as much as 12.7% – £26 billion – by 2013.
The past few months have seen a number of chains reveal they will be tapping into new sectors this year, with Asda saying it plans to become the UK's biggest non-food retailer by launching 150 standalone Living stores over the next five years, and Sainsburys hoping to double its sales of non-food items by 2015.
Speaking to Reuters, Nick Bubb, analyst at financial advisory firm, Arden Partners, says, “In the U.S, Wal-Mart has killed off catalogue showroom operations like Argos, and in the UK, Asda seems to want to do the same.”
Bryan Roberts, global research director at Planet Retail, agrees it could be dire for independent outlets, adding, “They will trade customers up the value chain, and take on specialists in their respective areas.”
Tesco, Asda and Sainsburys are just some of the outlets currently believed to be moving into the non-food arena this year, with recent reports from market research company, Verdict, predicting that their share of the market could reach as much as 12.7% – £26 billion – by 2013.
The past few months have seen a number of chains reveal they will be tapping into new sectors this year, with Asda saying it plans to become the UK's biggest non-food retailer by launching 150 standalone Living stores over the next five years, and Sainsburys hoping to double its sales of non-food items by 2015.
Speaking to Reuters, Nick Bubb, analyst at financial advisory firm, Arden Partners, says, “In the U.S, Wal-Mart has killed off catalogue showroom operations like Argos, and in the UK, Asda seems to want to do the same.”
Bryan Roberts, global research director at Planet Retail, agrees it could be dire for independent outlets, adding, “They will trade customers up the value chain, and take on specialists in their respective areas.”
