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British Grocers See Encouraging Increase in Profits

By Edited Nov 10, 2015 1 1

British grocers have been encouraged in recent months by an increase in domestic sales. The growth in sales came after a long period of stagnancy, as consumers tried to conserve on spending.

 

Consumers in the United Kingdom experienced a cut in their disposable income, as a result of several factors, including government austerity measures. Other factors caused consumers to have less income available for spending on items that might be considered unnecessary. These factors included increasing prices across several sectors in the United Kingdom, and little or no increase in salaries.

 

This cut in their disposable income naturally affected the spending habits of consumers. It resulted in a change in the way most consumers purchased essential items, such as food. Some consumers found it difficult to purchase brands they were accustomed to, and replaced preferred brands with cheaper brands. Some consumers cut non-essential items, from their grocery list.

 

The growth in sales is attributed in part to an increase in the price of goods available in supermarkets and grocers in Britain. This increase in the price of goods is due to inflation.

 

However, grocers see the increase in sales as positive nonetheless, and are anticipating further growth in the coming months. So far, grocery sales  in the past four weeks leading up to July 10 have grown by more than 0.7% over the four weeks immediately preceding that period.

 

Most of the growth has been seen in companies that help consumers save money by giving them big discounts on the groceries they sell. These companies specialize in attracting customers by using discounts. They attract a large volume of customers, so even though their mark-up is less, they still make a significant profit.

 

WM Morrison Supermarkets is one of the grocers that have seen their profits rise in recent months. WM Morrison Supermarkets is one of the largest supermarket brands in the United Kingdom and is popularly known as Morrisons. The company is listed on the London stock exchange as MRW: LN, and has been listed on the London stock exchange since 1967.

 

WM Morrison Supermarkets sells basic food items such as fresh and frozen foods, fruits, and vegetables. The supermarkets also stock wine, beer, baby products and even pet products. A total of 425 stores operate under the brand WM Morrison Supermarkets and all of them have made a profit by offering groceries and other items to consumers at discount prices. 

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Comments

Apr 22, 2012 6:31pm
askformore
The increase in the domestic sale is a very good sign, or promise of better time ahead.
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