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Non-food in the UK | Verdict Sector Report

Non-food in the UK | Verdict Sector Report

Summary

Grocery retailers will outperform the wider non-food market over the next five years. Health & beauty will continue to dominate, while in a reflection of the wider market, music & video will be decimated by digital delivery and online content. The grocers are becoming more competitive in non-food with larger ranges and improved services making them a real threat to the specialists.

Key Findings

  • Discover which non-food sectors provide the most growth in grocers over the coming five years, enabling you to effectively plan your non-food strategy
  • Understand how the grocers are improving their use of space in store and identify opportunities to further improve your performance
  • Benchmark your performance against the Big Four grocers and the remainder of the market by non-food sector in order to identify opportunities
Summary

Total non-food has struggled compared to total retail in recent years; however, the grocers have outperformed both, as their high levels of footfall have provided them with a captive audience of shoppers looking for value and convenience in non-food.

In the five years to 2014 each of the Big Four grocers has increased its share of the non-food market, as these sectors became more important to help improve the performance of their larger stores in particular. Tesco remains dominant thanks to its significant space advantage and market leading position in the food & grocery sector.

Health & beauty continues to dominate the grocers' non-food offer and will be the fastest growing sector. This is a reflection of the continued improvements that the grocers have made to their offers. The addition of services such as cosmetics counters, nail bars and pharmacies has all helped make them more competitive.

Reasons To Buy
  • Which retailer will gain the most market share in non-food in 2014 and why?
  • What impact will smaller stores have on non-food sales, and how will grocers incorporate an effective online offer?
  • What sectors are the grocers underperforming in and how can they turn their performance around in these sectors?
  • How does the growth in the grocers non-food market compare to total retail and the total non-food market?


  • Outlook
    • Overview
    • Main Conclusions
      • Grocers set to outperform wider non-food market
      • Health & beauty will continue to dominate
      • while music & video loses share
      • Big Four grocers gain market share as Tesco remains dominant
      • Grocers must increase the appeal of their non-food offer
      • Offering all products to customers regardless of channel must be the aim for grocers
      • Grocers are underperforming in three growing sectors
  • Recommendations
    • Overview
    • Retailer Strategies
      • Instore services will drive non-food sales
      • Specialist service vital to support big ticket sales
      • Improvements to visual merchandising will drive footfall increases
      • Multichannel offer must be consistent across channels
      • Customer focus is essential
  • Market Size
    • Overview
    • Market Definitions
      • Table Non-food in grocers definitions, 2015
    • Non-food Market
      • Table Food & grocery, non-food and total retail market sizes (£m), 2005-15e Total retail
    • Grocers' Non-food Sales
    • Market Segmentation
  • Market Forecast
    • Overview
    • Market Definitions
      • Table Non-food in grocers definitions, 2015
    • Non-food Market
      • Table Food & grocery, non-food and total retail market sizes (£m), 2010-20e
    • Grocers' Non-food Sales
    • Market Segmentation
  • Channel Shares
    • Overview
    • Grocers Steal Share from Specialists in Key Sectors
      • Music & video declines mirror wider sector woes
      • Sainsbury's to achieve fastest growth
    • Health & Beauty in Grocers
      • Sector expenditure
      • Market shares
        • Table Grocers' share of total health & beauty sector (%), 2010-15e
        • Table Grocers' share of grocers' health & beauty sector (%), 2010-15e
    • Clothing & Footwear in Grocers
      • Sector expenditure
      • Market shares
        • Table Big Four grocers' share of total clothing & footwear sector (%), 2010-15e
        • Table Big Four grocers' share of grocers' clothing & footwear sector (%), 2010-15e
    • Electricals in Grocers
      • Sector expenditure
      • Market shares
        • Table Big Four grocers' share of total electricals sector (%), 2010-15e
        • Table Big Four grocers' share of grocers' electricals sector (%), 2010-15e
    • Homewares in Grocers
      • Sector expenditure
      • Market shares
        • Table Big Four grocers' share of total homewares sector (%), 2010-15e
        • Table Big Four grocers' share of grocers' homewares sector (%), 2010-15e
    • Music & Video in Grocers
      • Sector expenditure
      • Market shares
        • Table Big Four grocers' share of total music & video sector (%), 2010-15e
        • Table Big Four grocers' share of grocers' music & video sector (%), 2010-15e
    • Other Non-food in Grocers
      • Definition
      • Sector expenditure
  • Market Shares
    • Overview
    • Big Four Still Enjoying Growth in Non-food Sector
      • Table Grocers' shares of total non-food market (%), 2010-15e
      • Table Grocers' shares of total grocers' non-food market (%), 2010-15e
  • Sector Trends
    • Overview
    • Improved use of Space can Make Grocers Non-food Destinations
    • Partnerships Drive Better Engagement and use of Space
    • Online Non-food is Taking off for Grocers
      • Sainsbury's case study
        • Table Online non-food market split by fulfilment method (£m), 2015 and 2020e
        • Table Preferred method of fulfilment for food & grocery shopping if all were available (%), 2015
      • AO.com: online best practice
        • Table Online satisfaction from non-food purchases
  • Methodology
    • Methodology: Outlook Market size
      • Market shares
      • Sales density calculation
    • Methodology: Market Size
      • Market size
      • Market shares
    • Methodology: Market Forecast
      • Market size
      • Market forecast
    • Methodology: Channel Shares
    • Methodology: Market Shares
      • Market size
      • Market shares
      • Sales density calculation
    • Methodology: Sector Trends
      • Market size
      • Market shares
  • Appendix
    • Appendix: Outlook
      • Abbreviations
      • Definitions
    • Appendix: Recommendations
      • Abbreviations
      • Definitions
    • Appendix: Market Size
      • Abbreviations
      • Definitions
    • Appendix: Market Forecast
      • Abbreviations
      • Definitions
    • Appendix: Channel Shares
      • Abbreviations
      • Definitions
    • Appendix: Market Shares
      • Abbreviations
      • Definitions
    • Appendix: Sector Trends
      • Abbreviations
      • Definitions
  • Appendix
    • About Verdict Retail
    • Disclaimer

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