OVERVIEW OF THE UNITED KINGDOM MARKET

Transcription

1 OVERVIEW OF THE UNITED KINGDOM MARKET November, 2000 CORIOLIS RESEARCH

2 The nature of British consumers is undergoing fundamental changes I. In the United Kingdom, a large number of demographic clichés are true II. The UK is rapidly developing into a post-industrial economy III. Meat and three vege are being replaced with Tandori chicken and mangoes IV. Food retailing, especially by supermarkets, is highly competitive forcing the various chains to differentiate themselves by targeting specific customers I - 1

3 There has been a fundamental shift in the characteristics of the UK consumer FUNDAMENTAL CHANGES IN THE CONSUMER 1950s 2000 Nuclear family Young mothers Women at home keeping house Food at home Meat and three vegetables Pie and a pint Industrial nation Rising middle class Monoculture Local Singles, Smaller households Children later in life Women in the work force Restaurant/cafe culture Vegetarians Healthy living London-based service economy Rich getting richer Multicultural Global I - 2

4 I. In the United Kingdom, a large number of demographic clichés are true The United Kingdom is a highly urbanised country centered around multicultural London The United Kingdom has a low growth, rapidly aging population The structure of households is changing I - 3

5 The United Kingdom is a highly urbanised country centered around multicultural London Almost 90% of the population live in urban areas Over 30% of the population lives in Greater London and the South East The cities are more multicultural than the rest of the country I - 4

6 Almost 90% of the population live in urban areas URBANISATION (Population Millions; ) Population CAGR (50-00) % (0.5%) Rural Urban % Source: FAO I - 5

7 Over 30% of the population lives in Greater London and the South East REGIONAL POPULATIONS (Millions, 1998) Scotland 5.2 Northern Ireland 1.7 North 3.0 Yorkshire/ North West 5.3Humber 6.9 East Midlands West Midlands 3.5 East Wales London South East South West Source: UN I - 6

8 The cities are more multicultural than the rest of the country ETHNIC GROUPS IN THE UK (1998) UNITED KINGDOM INNER LONDON Indian Black 3.3% 1.6% Other 2.1% Indian 7.0% Other 5.1% Black 13.5% White 93.0% White 74.4% Source: UK Office of National Statistics (ONS) I - 7

9 The United Kingdom has a low growth, rapidly aging population The UK has had very low population growth in the last 40 years Young women have dramatically increased their participation in the labour force... leading to women having fewer children at an older age Declining birth rates have led to a rapidly aging population, 15.7% of the population is over 65 years I - 8

10 The UK has had very low population growth in the last 40 years SELECTED COUNTRIES POPULATION GROWTH RATES (Annual growth rate; ) Malaysia 2.54% Brazil 2.15% India 2.10% New Zealand 1.21% USA 1.00% Japan 0.76% France 0.64% Finland 0.39% UK 0.29% Source: FAO I - 9

11 Young women have dramatically increased their participation in the labour force... WOMEN IN THE LABOUR FORCE (% of all women; ) % change 1976v00 Women all 65.4% 70.5% 5.1% Women % 75.8% 24.5% Women % 77.1% 9.9% Women % 77.5% 10.7% Women % 53.3% 4.5% Women % 31.4% 4.2% Women 65 and over 4.6% 3.6% (1.0%) Source: ONS I - 10

12 ...leading to women having fewer children at an older age LIVE BIRTHS BY AGE OF MOTHER (per 1000 women in age group; 1999) Total Births Under Source: ONS I - 11

13 Declining birth rates have led to a rapidly aging population, 15.7% of the population is over 65 years POPULATION BY AGE (Millions; ) Under and over Source: ONS I - 12

14 The structure of households is changing Nuclear families (couples with children) have fallen from 50% to less than 30% The size of the average household is falling I - 13

15 Nuclear families (couples with children) have fallen from 50% to less than 30% STRUCTURE OF UK HOUSEHOLDS (% of households) Absolute Change of Households 61v Million 18.6 Million 20.2 Million 22.4 Million 24.0 Million 7.7 M Single Household/ Flatmates 16.2% 22.0% 26.5% 29.4% 30.7% 14.5% Couple no Children 26.3% Lone Parent 6.1% 27.0% 25.5% 27.5% 29.7% 3.4% 7.0% 8.8% 9.8% 9.9% 3.8% Couple with Children 51.5% 44.0% 39.2% 33.3% 29.7% (21.8)% Source: ONS I - 14

16 The size of the average household is falling POPULATION CHARACTERISTICS OVER TIME ( ) POPULATION AND HOUSEHOLDS (Millions) Population CAGR % 3.4 PEOPLE PER HOUSEHOLD CAGR (0.7%) Households % Source: ONS I - 15

17 II. The UK is rapidly developing into a post-industrial economy The economy is now based on services instead of manufacturing The UK has a healthy middle class However the class struggle remains I - 16

18 The economy is now based on services instead of manufacturing The UK has seen a decline in manufacturing employment and an increase in services Services now account for more than two thirds of GDP - manufacturing and agriculture is less than 20% Just under half of the population is employed or looking for work I - 17

19 The UK has seen a decline in manufacturing employment and an increase in services EMPLOYMENT BY INDUSTRY (Millions; 1978 vs. 2000) Public Administration Distribution, Hospitality Finance Manufacturing Transport, Communication Construction Other Services Agriculture Energy Source: ONS I - 18

20 Services now account for more than two thirds of GDP - manufacturing and agriculture is less than 20% GDP BY SECTOR (1997) Manufacturing & Construction 18.7% Agriculture 1.1% Government 11.3% Services 68.9% Source: CIA World Fact Book I - 19

21 Just under half of the population is employed or looking for work Economically Inactive 13.2% EMPLOYMENT STATUS (Percent; 1998) Over % Employed 46.7% Under % Unemployed 3.0% TOTAL POPULATION = 59.1 Million Source: ONS I - 20

22 The UK has a healthy middle class Over 50% of households are defined as middle class Real incomes are rising Almost three quarters of households own their home I - 21

23 Over 50% of households are defined as middle class HOUSEHOLDS BY SOCIAL CLASS 1 (Households by income-defined social class; 1998) Pensioners 11.4% A 7.1% E2 12.1% B 25.8% E1 10.0% 52.7% D 6.7% C 26.9% 1. Gross weekly income by head of household, one or more earners A= 640+, B= , C= , D= under 160; Households without an earner E1= 160+, E2= Under 160; Pensioners Source: MAFF, National Food Survey I - 22

24 Real incomes are rising REAL AVERAGE HOUSEHOLD DISPOSABLE INCOME (Pounds per week; ) 371 CAGR % Source: Family Expenditure Survey I - 23

25 Almost three quarters of households own their home OWNERSHIP OF DWELLING (Percent of households; 1998) Council 20.0% Own Outright 28.3% Rented 8.5% 71.5% Own with Mortgage 43.2% TOTAL HOUSEHOLDS = 24 Million Source: ONS I - 24

26 However the class struggle remains The rich are getting richer must faster than the poor are getting richer Regional differences remain; wealth and income is still concentrated around London and the south I - 25

27 The rich are getting richer must faster than the poor are getting richer DISTRIBUTION OF REAL HOUSEHOLD DISPOSABLE INCOME (Pounds per week per capita; ) 90th Percentile Income CAGR % th Percentile 2.0% 300 Median 1.6% th Percentile 10th Percentile 1.3% 1.3% Source: Institute for Fiscal Studies, 1999 I - 26

28 Regional differences remain; wealth and income is still concentrated around London and the south UK INCOME DISTRIBUTION BY REGION (Household gross income; Pounds per week per capita; 1998) Scotland Northern Ireland West Midlands North West North Yorkshire/ Humber East Midlands Wales South West East South East London Source: ONS, Coriolis Analysis I - 27

29 III. Meat and three vege are being replaced with Tandori chicken and mangoes The United Kingdom is seeing a significant change towards more healthy eating habits Consumer spending on food, while influenced by demographic factors, is flat I - 28

30 The United Kingdom is seeing a significant change towards more healthy eating habits Unlike in most other countries, daily caloric intake is declining Consumers are trading away from high fat foods Total dairy consumption is down, while low fat milk is increasing at the expense of wholemilk Total spread consumption is decreasing, while low fat spreads are increasing at the expense of butter and margarine Total meat consumption is down, while poultry is increasing at the expense of red meat Consumers are embracing healthier foods and lifestyles Changes in eating habits reflect a healthier diet People are spending more on fruits, vegetables and cereals Ethnic food, produce and carbohydrates have grown at the expense of more traditional English fares Vegetarianism is on the rise, especially among women, 6.7% of whom are vegetarians I - 29

31 Unlike in most other countries, daily caloric intake is declining FOOD NUTRITION Calories Fat Protein (Daily grams per capita) (Daily grams per capita) (Daily grams per capita) Country %D %D %D United States 2,965 3,699 25% % % NZ 2,941 3,395 15% % % UK 3,282 3, % % % Japan 2,704 2,932 8% % % China 2,018 2,897 44% % % Source: UN Human Development Indicators; Coriolis Analysis I - 30

32 Total dairy consumption is down, while low fat milk is increasing at the expense of wholemilk PERSONAL WEEKLY CONSUMPTION OF DAIRY PRODUCTS (At Home; Milliliters/Grams; ) 2973 Cheese Low Fat Milk/Cream CAGR Volume (1.4%) (0.1%) 937 Wholemilk % (5.8%) Source: MAFF, National Food Survey I - 31

33 Total spread consumption is decreasing, while low fat spreads are increasing at the expense of butter and margarine PERSONAL WEEKLY CONSUMPTION OF SELECTED SPREADS (At Home; Grams; ) Low and Reduce Fat Spreads Margarine Lard Butter CAGR grams (21.0%) 7.5% (12.5%) (12.1%) (4.0%) Source: ONS I - 32

34 Total meat consumption is down, while poultry is increasing at the expense of red meat Fish PERSONAL WEEKLY CONSUMPTION OF SELECTED MEATS AT HOME 1 (Grams; ) CAGR grams (8.2%) (1.8%) Poultry % Mutton and Lamb (2.2%) Beef and Veal (5.0%) Does not include pork and other meats Source: ONS I - 33

35 Changes in eating habits reflect a healthier diet CHANGES IN DIET TO LAST YEAR (% of those surveyed; 1996v1997) Eats less fatty/fried food 8% 10% Eats more fruit and vegetables 7% 9% Eats more pasta, rice, bread 4% 4% Eats fewer sweets/cakes 3% 6% Eats more fatty foods, fast foods 2% 3% Stopped eating meat Cut down on alcohol 1% 1% 1% 1% Other changes 5% 7% Source: ONS, Health Education Monitoring Survey I - 34

36 People are spending more on fruits, vegetables and cereals EXPENDITURE ON FOOD AT HOME BY MAIN FOOD GROUPS (Percent; Pounds; Share of stomach; ) Change Meat and fish 31.4% 33.5% (2.1%) Fruits and vegetables 21.1% 24.3% 3.2% Cereals 16.7% 18.1% 1.4% Dairy products 12.6% 14.0% (1.4%) 1988 Other 13.6% 14.6% 1998 (1.1%) Source: MAFF, National Food Survey I - 35

37 Ethnic food, produce and carbohydrates have grown at the expense of more traditional English fares GROWTH RATES OF SELECTED FOODS EATEN OUT (Grams per capita per week; CAGR; ) Ethnic Foods 10.0% Grams per person per week Rice, Pasta, Noodles 7.8% 27 Fruit 6.7% 22 Vegetables 4.9% 197 Fish 4.3% 25 Beverages 0.6% 392 ml Meat Products 0.2% % Alcoholic Drinks 435 ml -5.4% Icecream, deserts, cakes 51 Source: MAFF, National Food Survey I - 36

38 Vegetarianism is on the rise, especially among women, 6.7% of whom are vegetarians MALE AND FEMALE VEGETARIANS (Percent of population; ) CAGR % 6.7% Females 12.6% 5.4% 5.8% 4.1% 4.5% 4.1% 2.6% 3.2% 3.4% 2.9% 3.2% 3.2% 3.2% Males 9.1% 1.6% 2.0% 2.1% 1.8% Source: Vegetarian Society Website I - 37

39 Consumer spending on food, while influenced by demographic factors, is flat Actual consumer spending on food is not showing significant growth Food as a percent of total household spending is decreasing The average person spends per week on food Food away from home is growing faster than food at home Demographic factors impact on food expenditure Middle aged consumers spend the most on food, however younger consumers spend more on eating out The higher the income the more spent on food The richest 7% of UK households account for 25% of food spending People in the South of England spend the most on food I - 38

40 Food as a percent of total household spending is decreasing FOOD AS A PERCENT OF TOTAL HOUSEHOLD EXPENDITURE 1 (Percent; ) Total Food 19.6% Total Food 15.7% Other 80.4% Other 84.3% 1: Constant prices; includes Food at Home and Food Away from Home Source: ONS I - 39

41 The average person spends per week on food AVERAGE PERSONAL WEEKLY UK FOOD EXPENDITURE (Pounds; 1998) Food Away From Home Total Spending on Food % 5.21 Food 1.52 Alcoholic drinks % Food at Home % Food 1.33 Alcoholic drinks 0.52 Softdrinks 0.30 Confectionery 1: Includes alcohol, does not include non-foods, HBC, pet food, petrol etc Source: ONS; MAFF, National Food Survey; FAS; Other; Coriolis Analysis I - 40

42 Food away from home is growing faster than food at home EXPENDITURE ON FOOD BY LOCATION 1 (Pounds per week per person; ) Expenditure CAGR % % 4.1% Food Away from Home Food at Home % 3.4% Not adjusted for inflation (2.7% in 1998) Source: MAFF, National Food Survey I - 41

43 Middle aged consumers spend the most on food, however younger consumers spend more on eating out PERSONAL EXPENDITURE ON FOOD BY AGE BY MAIN FOOD GROUPS 1 (Pounds; Share of stomach; 1998) Average Food Away from Home Other Food at Home Dairy Cereals Fruits & Vegetables Meat & Fish Under : Food only, excludes alcohol Source: MAFF, National Food Survey I - 42

44 The higher the income the more spent on food WEEKLY EXPENDITURE ON FOOD AND DRINK BY INCOME 1,2 (Pounds per capita; 1998 ) Households with one or more wage earners Households without a wage earner Food at Home Food Away from Home A1 A2 B C D E1 E2 Pensioner 1: Including Alcohol; 2. Gross weekly income by head of household, one or more earners A1= 910+, A2= , B= , C= , D= under 160; Households without an earner E1= 160+, E2= Under 160; Pensioner Source: MAFF, National Food Survey I - 43

45 The richest 7% of UK households account for 25% of food spending INCOME GROUP:HOUSEHOLDS V. FOOD SPENDING 1,2 (Percent; 1998 ) A 7.1% 24.9% B 25.8% 22.1% C 26.9% D E 6.7% 22.1% 20.4% 4.2% 19.0% OAP 11.4% 9.4% Households Food Spending 1: Including Alcohol; 2. Gross weekly income by head of household, one or more earners A= 640+, B= , C= , D= under 160, E= Households without an earner, OAP= Pensioner Source: MAFF, National Food Survey I - 44

46 People in the South of England spend the most on food WEEKLY FOOD AT HOME EXPENDITURE BY MAIN FOOD GROUPS AND REGION 1 (Pounds per capita; 1998) Other Dairy Products Cereals Average Meat & Fish Fruits & Vegetables : Excluding Alcohol Source: MAFF, National Food Survey London South East South West East North East West Midlands Yorkshire & North West East Humber Midlands I - 45

47 IV. Food retailing, especially by supermarkets, is highly competitive forcing the various chains to differentiate themselves by targeting specific customers Food is a 77 Billion industry in the United Kingdom Restaurants and Cafes dominate the food away from home market Over a quarter of a million foodservice outlets exist in the UK with no truly dominant players Supermarkets dominate the 55 Billion retail food sector 1 Food at home sales are highly concentrated; five Major Multiples account for 49.9% of turnover The competitive UK supermarkets has produced a number of well respected chains Supermarket chains target different shoppers in different income groups and this positioning is reflected in their customer mix The AB chains have most of their stores in London and the wealthier South 1: See Appendix A for Supermarket profiles I - 46

48 Food is a 77 Billion industry in the United Kingdom UK FOOD AND ALCOHOL EXPENDITURE BY CHANNEL 1 (Pounds Billion; 1999E) Food Away From Home 2 Total Spending 77 Billion 100% 22 Billion 28% Food at Home Major Multiples (5 Chains) 35 Billion 45% 55 Billion 72% Other 20 Billion 27% 1: Does not include non-foods, HBC, pet food, petrol etc 2: Includes non-personal food spending such as business meals, hotel dining, tourists, institutions (prisons, hospitals) and other Source: ONS, MAFF, National Food Survey, IGD, Various Annual Reports, Coriolis Analysis I - 47

49 Restaurants and Cafes dominate the food away from home market UK FOOD AND ALCOHOL AWAY FROM HOME MARKET SHARE 1 (total retail sales; percent; Billions; 1999E) Travel/Leisure 11% Staff Catering 2% Other 5% 1.1 Restaurants/Cafes 28% Pubs 21% 4.6 Fastfood 9% 2.0 Hotels 24% 5.3 TOTAL = 22.0 Billion 1: Includes alcohol ( 5 Billion or 22.6% of Food Away from Home expenditure) 2: Includes Health Care, Education, Services and Welfare Source: IGD I - 48

50 Over a quarter of a million foodservice outlets exist in the UK with no truly dominant players UK FOOD AND ALCOHOL AWAY FROM HOME Market No. of Sales Share Outlets Segment ( B99) (% Sales) (1999) Main Players Restaurant/Cafes % 45,787 Pizza Express, Cafe Rouge, Conran, Fastfood 2.0 9% 2,067 Tricon, McDonalds, Burger King, Wimpy Hotels % 60,991 Granada, Whitbread, Jarvis, Hilton, Stakis Pubs % 55,945 Allied Domecq, Whitbread, Bass, S&N, Normra Travel/Leisure % 49,655 P&O, Compass, First Leisure, Bass Leisure Staff Catering 0.4 2% 21,041 Compass, Granada Food Service, Gardner Other 1.1 5% 62,386 NHS, Compass, Granada Food Service, Gardner Total % 297,872 Source: IGD I - 49

51 Food at home sales are highly concentrated; five Major Multiples account for 49.9% of turnover UK FOOD AT HOME MARKET SHARE 1 (Total Retail Sales; Food and non-food; 1999) Other 14.0% 15.6% Co-operatives 6.0% 11.8% Convenience 18.0% Major Multiples 49.9% 8.9% Morrisons 3.0% Marks and Spencer 2.9% Waitrose 1.9% Iceland 1.9% Discounters 2 2.4% Minor Multiples 12.1% 6.2% 7.4% TOTAL = 96.6 Billion 1: Total UK supermarket sales: Food ( 55 Billion) and non-food ( 42 Billion); 2. Includes Aldi, Lidl, and Netto Source: Various Annual Reports; Hoovers; Company websites; FAS; Coriolis Analysis I - 50

52 The competitive UK supermarket sector has produced a number of well respected chains UK SUPERMARKETS 1 UK Operating Sales 1999 Market Number Average Sales Profit CAGR Share of Sales/Store Group ( MM99) ( MM99) (95-99) (% Sales) Stores per Week Tesco 16, % 15.6% ,000 Sainsbury 12, % 11.8% ,000 Asda 8, % 8.9% ,000 Safeway 8, % 7.4% ,000 Somerfield 2 5, % 6.2% ,000 M&S 3 2,900 N/A 3% 2.9% ,000 Iceland 1, % 1.9% ,000 Waitrose 1, % 1.9% ,000 Morrisons 1, % 3.0% ,000 Co-op/CWS 1, % 3.0% , United Kingdom data only, does not include international operations; 2. Includes Kwik Save; 3. Food sales only Source: Various Annual Reports; Hoovers; Company websites; FAS; Coriolis Analysis I - 51

53 Supermarket chains target different shoppers in different income groups STORE POSITIONING BY SOCIAL CLASS A B C D INDEPENDENTS E I - 52

54 and this positioning is reflected in their customer mix TOTAL SUPERMARKET TURNOVER BY SOCIAL CLASS (% of sales; by supermarket group; March 1998) AB 37% 29% 27% 26% 22% 18% 16% 17% 25% 27% 24% 13% 11% 22% 27% 8% 18% 31% 31% 30% 29% 24% 27% C1 28% 24% 29% 28% 29% C2 D E 15% 9% 11% 24% 15% 20% 22% 11% 12% 11% 14% 14% 10% 11% 11% 17% 16% 17% 11% 14% 15% 17% 16% 21% 19% 24% 26% Waitrose M&S Sainsbury Safeway Tesco Co-op Asda Somerfield Morrisons Iceland Kwik Save Source: Taylor Nelson AGB plc. I - 53

55 The AB chains have most of their stores in London and the wealthier South Waitrose Sainsbury RETAIL STORES BY CHAIN BY REGION (% of chains own outlets; 1997) 52.6% London/South East 74.8% 12.5% Southwest/Wales 18.5% 10.4% Midlands 14.8% North/Scotland 16.4% Number of Stores Marks & Spencer 40.6% 12.7% 15.6% 31.2% 276 Tesco 38.4% 16.5% 16.5% 28.5% 550 Iceland 34.3% 12.9% 18.0% 34.8% 738 Somerfield 30.9% 26.0% 21.3% 21.8% 601 Safeway 24.5% 11.3% 14.2% 50.0% 478 Co-op 19.9% 13.4% 25.4% 41.3% 2300 Asda 18.9% 11.2% 17.0% 52.9% 206 Wm Morrison 20.5% 79.5% 78 Source: Williams de Broe I - 54

56 The location of supermarkets is directly related to population density SUPERMARKET CHAIN OUTLETS BY REGION (Number of chain supermarkets; 1997) Glasgow Newcastle Manchester Leeds Liverpool Sheffield Birmingham Cardiff London& South East Source: Williams de Broe I - 55

57 Appendix A Appendix A: Supermarket Profiles Tesco Sainsbury Asda Safeway Somerfield Marks and Spencer Iceland Waitrose Morrisons Co-op - 1

58 Appendix A TESCO PLC PROFILE 1 Tesco House Delamare Road Chestnut Herts EN8 9SL UK Group Sales ( B): 20.4 UK Sales ( B): 18.3 Market Share: 15.6% Location: Nationwide Number of Stores: 659 UK Sales CAGR (96-00): 10.0% Store Type: Superstore, Metro, Group Operating Profit ( B): 1.0 OP % of Sales 5.1% Express, Compact Number employees: 131,031 Ownership: Publicly listed, UK UK Operating Profit ( B): financial figures - 2

59 Appendix A SAINSBURY PLC PROFILE 1 Parent Company: J Sainsbury plc Group Sales ( B): 16.3 UK Sales ( B): 12.1 Stamford House Stamford Street London SE1 9LL UK Market Share: 11.8% Location: Number of Stores: 405 Nationwide UK Sales CAGR (95-00): 5.2% Store Type: Sainsbury, Savacentre Group Operating Profit ( B): 0.87 OP % of Sales 5.3% Sainsbury Local, Number employees: 130,000 Ownership: Publicly listed, UK UK Operating Profit ( B): financial figures - 3

60 Appendix A ASDA PROFILE 1 Parent Company: Wal-Mart Group Sales ( B): N/A UK Sales ( B): 7.6 ASDA House, Southbank, Great Wilson St. Leeds LS11 5AD, UK Market Share: 8.9% Location: Number of Stores: 240 Nationwide UK Sales CAGR (95-00): N/A Store Type: Asda, Dales Group Operating Profit ( B): N/A OP % of UK Sales 5.4% Number employees: 78,450 Ownership: Publicly listed, USA UK Operating Profit ( B): financial figures - 4

61 Appendix A SAFEWAY PLC (UK) PROFILE 1 6 Millington Road Hayes, Middlesex UB 3 4AY UK Group Sales ( B): 8.1 UK Sales ( B): 7.9 Market Share: 7.4% Location: Nationwide Number of Stores: 470 UK Sales CAGR (95-00): 7.0% Store Type: Safeway Group Operating Profit ( B): 0.42 OP % of Sales 5.2% Number employees: 76,000 Ownership: Publicly listed, UK UK Operating Profit ( B): financial figures - 5

62 Appendix A SOMERFIELD PLC PROFILE 1 Somerfield House Whitchurch Lane Whitchurch Bristol BS 14 0TJ UK Group Sales ( B): 5.9 UK Sales ( B): 5.9 UK Sales CAGR (95-00): 24.0% Group Operating Profit ( B): 0.10 Market Share: 6.2% Location: Nationwide Number of Stores: 470 Store Type: Somerfield, Gateway, KwikSave, Food Giant Number employees: 62,000 OP % of Sales: 1.7% Ownership: Publicly listed, UK UK Operating Profit ( B): financial figures - 6

63 Appendix A MARKS AND SPENCERS PLC PROFILE 1 Michael House Baker Street London W1A 1DN UK Group Sales ( B): 8.2 UK Food Sales ( B): 2.8 UK Sales CAGR (95-00): 3.0% Group Operating Profit ( B): 0.63 Market Share: 2.9% Location: Nationwide Number of Stores: 289 Store Type: M&S Number employees: 3720 Ownership: Publicly listed, UK OP % of Sales: 7.7% UK Operating Profit ( B): N/A financial figures - 7

64 Appendix A ICELAND GROUP PLC PROFILE 1 Second Ave. Deeside Industrial Park Deeside, Flintshire CH5 2NW, UK Group Sales ( B): 1.9 UK Sales ( B): 1.9 Market Share: 1.9% Location: Nationwide Number of Stores: 763 UK Sales CAGR (95-00): 9.0% Store Type: Iceland, Bhs Group Operating Profit ( B): 0.78 OP % of Sales: 4.1% Store Iceland Extra Number employees: 11,754 Ownership: Publicly listed, UK UK Operating Profit ( B): financial figures - 8

65 Appendix A WAITROSE PROFILE Victoria St London SE 1E 5NN UK Parent: John Lewis Partnership Group Sales ( B): 3.7 UK Food Sales ( B): 1.8 UK Sales CAGR (95-00): 8.0% Group Operating Profit ( B): 0.21 OP % of Sales: 5.7% Market Share: 1.9% Location: England Number of Stores: 122 Store Type: Waitrose Number employees: 23,300 Ownership: Employee owned UK Food Operating Profit ( B): financial figures - 9

66 Appendix A MORRISON SUPERMARKET PLC PROFILE 1 Hilmore House Thornton Rd. Bradford, West West Yorks BD8 9AX UK Group Sales ( B): 3.0 UK Retail Sales ( B): 1.8 Market Share: 3.0% Location: England Number of Stores: 110 UK Sales CAGR (95-00): 9.0% Store Type: Morrisons Group Operating Profit ( B): 0.12 OP % of Sales: 4.0% Number employees: 22,000 Ownership: Publicly listed, UK UK Retail Operating Profit ( B): financial figures - 10

67 Appendix A CO-OPS PROFILE 1 Co-operative Wholesale Society Group Sales ( B): 4.4 UK Food Sales ( B): 1.8 UK Sales CAGR (95-00): 1.0% Group Operating Profit ( B): 0.13 OP % of Sales: 3.0% Freepost MR9473 Manchester M4 8BA UK Market Share: 3.6% Location: Nationwide Number of Stores: 1100 Store Type: Welcome Number employees: N/A Ownership: Co-operative UK Food Operating Profit ( B): financial figures - 11