Supermarket price wars

Abstract

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Fierce competition has become the norm for the vast majority of firms in today’s business world. But few will experience the same level of intensity as those operating within the UK grocery retail sector. The fight to retain or increase market share is an ongoing one. Major players Tesco, Asda, Sainsbury’s and Morrisions seem perennially engaged in price wars. The massive impact in recent years of European chains Aldi and Lidl has only served to further heighten the prevailing competitiveness. Giving customers the lowest possible prices is the mutual goal of these retailers. Supermarkets aren’t charitable organizations though. Something has to give. And that something is invariably costs. Most companies follow a similar approach in striving to make their operations leaner. Strict control of labor costs is the preferred way of attaining this objective. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.