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The proliferation of smaller stores in urban locations
– a development designed in part to address this demand and in part to offset falling sales at out-of-town hypermarkets –
may not have the desired effect of improving companiesf
bottom line, as shoppers use the local choice to spread their
loyalties more widely.
So what are the UKfs home-grown supermarkets doing about the changing market conditions and the German challenge? Price-cutting, in different forms, has been the favoured response at all the gbig fourh. But a focus on price to the exclusion
of all else may misread the discountersf appeal and may not be all that is required,
and other solutions are being tried.
The UK has Europefs most advanced online grocery sector
– which may be one reason for the decline in sales at
big out-of-town establishments. Then again it might reflect customer dissatisfaction with the shopping experience. The one could feed on the other.
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