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Market study into the retail grocery sector - Commerce …

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Market study into the retail grocery sectorDraft report Executive summary $ KGMarket study into the retail grocery sector1ContentsOverview 2Key findings 3Price, profits and innovation 4Market duopoly and high barriers to entry 4Issues facing consumers 5Issues facing suppliers 5Options for recommendations 6Other matters of interest to the Commission 6Summary of our analysis 7Profitability 7Major grocery retailers are earning excess levels of ROACE 7Business cases show high expected rates of return 8Profit margins have been consistent over time and above international comparators 8International price comparisons 8Innovation and investment 9Online retailing 9In-store innovations 9Innovations targeted at efficiency 9Consumer preferences when shopping for groceries 9Many consumers prefer to buy their groceries at a one-stop shop 10Consumers typically travel short distances to buy groceries 10There are regional differences in grocery

The retail grocery sector is diverse and made up of a range of retailers catering to the needs of a similarly diverse range of consumers through a mix of supermarkets, specialist and international food stores, convenience stores, online-only supermarkets and meal kit providers. Market study into the retail grocery sector 3

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