The major change in the UK Grocery retailing market came after the Second World War when agricultural subsidies and retail liberalization created the climate for supermarkets to grow.
After the Second World War Planning permission laws were relaxed and grocery retailers capitalized on this and began to expand. To stimulate growth the government passed the Planning Policy Guidance PPG6 (1988) titled Major Retail Development, which encouraged retailers to build out of town retail parks. This had a catastrophic effect on Town centres and in 1993 the government introduced the PPG6 (1993) titled Town Centres and Retail Developments. To try and tighten restrictions and protect town centres. These restrictions were further strengthened by PPG6 (1996), which aimed to revolutionize town centre and made it very difficult for retailers to get planning permission for out of town centres.
To try and get round Planning permission restrictions major grocery multiples developed smaller convenience style stores in built up areas this has provided tough competition for the typical independent. Tesco’s format range from its very large superstores, to small Metro stores located in city centre shopping areas and ‘Express’ stores located in petrol station forecourts.
The economic factors that affected the UK Grocery Industry were prompted by the recessions of, 1974, 1975, 1980, 1991 and 2008. The UK Grocery retailing industry had to adapt to high levels of inflation and record numbers of unemployment. In the early recessions of 1974 and 1975, grocery retailers realized for survival, they had to diversify in other products and markets. In the 1980 and 1991 recession’s grocery retailers began to focus on the needs of the customers, while offering high quality food at affordable prices.
The emergence of the Internet has been the major technology factor since 1960. The Internet gave grocery retailers a new...