After decades fighting to be the cheapest, many supermarkets
chains need to reinvent their model. With a grocery market
increasingly divided between deal-savvy consumers, and those who
can afford premium brands and shop from premium supermarkets,
mid-range supermarkets in the UK (e.g. Tesco, Sainsbury's,
Morrisons or Asda) are in a difficult position. Part of the problem
comes from a change in consumers' shopping habits. Consumers are
becoming more binary, going either for price or quality.
Price sensitive consumers tend to shop at hard-discount stores, or
even off-price retailers (e.g. Pound shops). For quality, they
would go for more upscale supermarkets (Waitrose, Department stores
food halls, or organic supermarkets). It therefore leaves mid-range
supermarkets in a rather difficult position; close to what is
called 'confused positioning' in marketing, with a message trying
to emphasise price and quality.