Post‐saturation competition in UK grocery retailing

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Abstract
Saturation, the seemingly inevitable collision of the grocery retailer's superstore opening programmes with the UK's stable population and static per capita food volume consumption, is expected during the 1990s. If growth is to be maintained by the ambitious multiples, reappraisal of threats and opportunities and re‐shaping of marketing strategies will be needed. Market leakage analysis can be used to show where present and future opportunities lie, and to indicate what sort of competitive strategies are needed to prevail and thrive in post‐saturation grocery retailing. Retailers must differentiate themselves from each other, destroying the consumer's commodity‐like perception of competing stores. This can be promoted through the strategic development of store personnel, the marketing‐oriented application of technology, and more precise targeting of consumer demands and under‐satisfied needs. The author's Strategic Choice Grid indicates that, through insightful and innovative marketing, UK grocery retailers can avoid the stagnation threatened by saturation.

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