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UK’s four largest supermarkets among European retail elite: Kantar

The UK’s four largest supermarkets are among the 20 largest retailers in Europe, according to a new Kantar Retail study. In part, the success of Tesco [IRDX RTSC], which is in second place in the new European rankings, Sainsbury’s [IRDX RSBR] (in tenth place), and Asda Walmart [IRDX RASD] (11) is down to their multichannel strength. Lagging behind is Morrisons [IRDX RMOR] (14), which has yet to launch its online grocery service but is expected to do so early next year.

Both Kantar’s current estimated European sales figures for the top 20 retailers, and predictions for five years hence can be seen in this chart.

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But while Tesco’s UK £1bn turnaround programme, which includes a focus on online, convenience shopping and refurbished stores, is seen as boosting Tesco’s recovery in this country, Kantar says that it must also “focus on its price, quality and service in other parts of Europe if it is to continue to compete on the European and global stage” and retain number two place in Europe, which it currently predicts that it will. Kantar says that Tesco is currently struggling with consumer confidence in central and Eastern Europe and that could have an impact.

Elsewhere it predicts that by 2018 Amazon will be the second largest global retailer. In Europe, it currently places the pureplay in 23rd place, with estimated European sales of £17.5bn but predicts these will grow to £40.7bn by 2018, putting it into ninth place.

Himanshu Pal, Kantar Retail’s director for retail insights, said: “This top 20 European ranking shows real opportunity for UK retailers if they continue to invest in the right areas. For example, there are already visible signs of improvements in Tesco stores with regards to quality and service, which are likely to get better with the integration of Euphorium Bakery, Harris + Hoole cafes, and Giraffe restaurants.

“But to regain its dominant position on the global, as well as the Europe, retailing landscape, Tesco will have to ensure that all its markets deliver growth.”

Tesco drive through shopping

Mentioned in this piece…

Tesco

Tesco

IRDX: RTSC

Tesco is the largest British supermarket chain. Tesco has a comprehensive multichannel offering, including mobile and tablet websites, click-and-collect options and home delivery. (more…)

Sainsbury’s

Sainsbury’s

IRDX: RSBR

Sainsbury’s is a British supermarket chain with a significant share of the UK market. (more…)

ASDA

ASDA

IRDX: RASD

Asda is a British supermarket chain which retails food, clothing, general merchandise, toys and financial services. (more…)

Morrisons

Morrisons

IRDX: RMOR

Morrisons is one of the ‘big four’ British supermarket chains with headquartered in Bradford, West Yorkshire, England. Founded in 1899 by William Morrison, the company now has over 400 stores in the UK. (more…)