Here in the UK, we have a sheer wealth of supermarkets from which to choose. When you want to get some food for the week, there is more than just one local shop you can visit. Which you decide to choose will depend on two things. The first thing you will likely consider is where your nearest shop is. If you don’t happen to have a car, you will need to think about how you’re going to get there and, of course, come back.

Supermarkets - WineThe second thing you will consider is your budget. Every family has a different budget when it comes to food shopping. According to the Office of National Statistics, an average family spends £60 on food. If you spend that amount for a four-person family, you’re not alone. Of course, some people spend more and some spend less. If you happen to have a pet, for example, your weekly shop will go up by about one-fifth. So, where do you shop? What are the most profitable British supermarkets?

The Big Four

When we talk about the most profitable shops in the UK, there are four big names that spring to mind. The so-called ‘big four’ are Tesco, Asda, Sainsbury’s and Morrisons. Of those four, Tesco has for a long time been the most profitable. The company makes around £3.3 billion every year. For the last few decades, these shops have dominated the world of supermarkets. In the last few years, though, there has been a real change in the marketplace. With family budgets becoming tighter and tighter, people want to pay discount prices. The two main low-budget shops have to be Lidl and Aldi. These two stores have changed the way in which people shop and forced companies to lower their prices.

Supermarkets - Fresh ProducePrice Wars

When you can buy something for £1 at Aldi, why would you spend £3 on it at Tesco? That is the question that many people ask themselves every week. Aldi’s advertising campaign highlights this difference in price. The issue with this advert is that now many people have decided to shop at the small price stores. That has forced mainstream supermarkets to lower their prices in a dramatic way. In the last five years, there have been a lot of ‘basic’ and ‘essential’ ranges. These selections are much cheaper than big-brand products. That means that people have a chance to buy affordable products no matter where they shop.

Profits Falling

One of the biggest changes in the world of supermarkets has to be the recent loss of profits. Last year, Tesco began to lose much of its profits, which could have hindered its place at the top. Two years ago, Sainsbury’s knocked Morrison’s off the number two spot. At the time, their profits began to fall, and they were not alone. In fact, all the major supermarkets have seen their profits decrease over the last five or ten years. Whether that is due to consumer habits or more diversity than before, no one knows.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.