Discount stores to boost food and grocery market
The UK grocery market is expected to grow to £184 billion by 2016, compared to £156.8 billion in 2011.
IGD Retail Analysis says that discount retailers will be one of the key drivers of this expansion, reaching over £10 billion for the first time.
The food and grocery expert predicts that discounters such as Aldi and Lidl will grow at an average annual rate of 10.1% and are forecast to be worth £11.4 billion by 2016.
It expects the convenience sector to grow by 4.7% to £42.2 billion by 2016 with online being the fastest growing channel with an annual average growth rate of 13.7%.
IGD highlighted a number of high profile events in 2012 as opportunities for growth. These included the Queen’s Jubilee celebrations, the Euro2012 football championship and the London Olympics.
Joanne Denney-Finch, chief executive, IGD commented: "We still buy most of our groceries at supermarkets and hypermarkets but we are also using different types of stores more often, such as online and convenience. And leading retailers are building their presence in these areas."
Denney-Finch said technology will be a key feature in driving growth in the food and grocery sectors, particularly proximity marketing and virtual reality services.
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