Marketing Essay Example | Topics and Well Written Essays - 1500 words - 44

Marketing - Essay Example A research conducted by the City analysts has predicted that Sainsbury’s is likely to register a decline in its grocery sales by 2.5% for the preceding three months. This is with the exclusion of fuel. This is going to be a big setback for Salisbury’s given that it has, for the last decade, registered only an increase in the sale of its groceries. Salisbury’s used to record all these profits until the consumers in the U.K changed their shopping habits. This was also due to the emergence of Aldi and Lidl which are discount chains. It is also noted that the prices of food fall considerably. With these changes in the markets, the big four supermarket chains in the U.K, Salisbury’s Tesco, Asda and Morrisons, have lost their market share was almost a fifth in the previous two months. Despite the fall in the market share, Morrisons is however indicated by the latest Kantar sales figures to be growing. This is unlike the other three chains of supermarkets. James Anstead, who is an analyst at Barclays, has predicted that predicted that the sales in like-for-like products for Salisbury’s are likely to drop by 25%. This is due to the coming on board of the discount chains which have offered immense competition to the supermarkets. It is indicated also that the brand of Aldi is more worth than that of Tesco. Tesco having reported a similar decline as Salisbury’s, it therefore means that the brand of Aldi is also more worth than that of Salisbury. It is predicted that in the next five years, the sales for the supermarkets are going to drop as the discounters and online shopping double their sales. The increase in sales for online shopping and the discounters is estimated at 92.9% and 82.2% respectively. This is unlike the supermarkets whose sales are expected to drop by 2.9% until the end of the year 2020. The increase in the