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In total non-food, including non-food grocery, now accounts for over £30bn within the major multiples, which represents almost a quarter of all sales within the UK grocery market. In the competitive retail environment, retailers have been looking to the higher value, non-food categories to generate higher revenues and profit in the face of declining consumer spending on food and grocery products. Instrumental in this success has been the hypermarket format, and IGD predicts hypermarket store numbers to rise to 800 stores by 2009, as well as growth in dedicated formats such as Asda’s George and Living fascias.
With the successful advancement of non-food within hypermarkets and larger supermarkets, alongside the tougher planning regulations now in force and the significant growth being reported in the convenience channel, what is the right balance between food and non-food? For supermarkets dealing with a growing array of formats, and for manufacturers wanting to expand distribution of their non-food products in the supermarket channel, what do shoppers want from non-food in their stores? What improvements are shoppers wanting to see to the range and merchandising of non-food categories in supermarkets? How does the supermarket offer compare with that on the high street? What impact does non-food have on the food offer?
IGD's shopper research on ‘Balancing Food and Non-food In-store’ seeks to understand the increasing demand for non-food within the major multiples, and identify where the opportunities lie.
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