Grocers grab 15% of video and CD market

The big supermarket groups have grabbed a 15 per cent share of the UK's music and video sales and could account for a quarter of the market within three years, according to a new report.

The latest issue of UK Retail Report, by retail consultants Corporate Intelligence, says sales of music and video products by the big four supermarkets topped pounds 400m last year. With the UK entertainment market worth pounds 2.9bn, that means Tesco, Sainsbury's, Safeway and Asda saw their share of the UK market rise from 10 per cent in 1995 to 15 per cent last year.

As the grocers cut prices on the biggest-selling chart compact discs and videos, the report says they will continue to exert pressure on rival retailers in the market, particularly WH Smith, Our Price and Boots.

"It is just another example of a product area where the supermarkets are creaming off the volume end of the market," says Corporate Intelligence's Robert Clark.

He points to sectors such as petrol, health and beauty products and books as other examples of the supermarkets' successful drive into non- food areas.

The report says that the retailers most vulnerable to the supermarket's relentless march are WH Smith and Boots. "These stores rely on women and older shoppers for a majority of their music sales, in contrast to specialist shops like HMV and Virgin," Mr Clark says. "But they do not offer sufficient breadth of range or quality of service to differentiate themselves from the crowd."

He adds that Our Price, which still operates from relatively small stores, could suffer for similar reasons.

Specialists such as Tower Records, whose six large stores give it 1.4 per cent of the UK market, should continue to prosper as it stocks a huge range of back catalogue music and videos. Kingfisher's Music and Video Club should be protected as it specialises in discounted back catalogue CDs, which are unlikely to be targeted by the supermarkets.

The smaller, independent retailers will have to carve out their own individual niche to survive, says Mr Clark.

Though the report rules out a price war, it says that the supermarkets will embark on a "war of attrition" to win further market share.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

The saffron censorship that governs India

Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
Prince Charles' 'black spider' letters to be published 'within weeks'

Prince Charles' 'black spider' letters to be published 'within weeks'

Supreme Court rules Dominic Grieve's ministerial veto was invalid
Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

How did fandom get so dark?

Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
The galaxy collisions that shed light on unseen parallel Universe

The cosmic collisions that have shed light on unseen parallel Universe

Dark matter study gives scientists insight into mystery of space
The Swedes are adding a gender-neutral pronoun to their dictionary

Swedes introduce gender-neutral pronoun

Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

Disney's mega money-making formula

'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

Lobster has gone mainstream

Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
Easter 2015: 14 best decorations

14 best Easter decorations

Get into the Easter spirit with our pick of accessories, ornaments and tableware
Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

Paul Scholes column

Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

The future of GM

The greenhouses where Monsanto 'plays God' with the future of the planet
Britain's mild winters could be numbered: why global warming is leaving UK chillier

Britain's mild winters could be numbered

Gulf Stream is slowing down faster than ever, scientists say
Government gives £250,000 to Independent appeal

Government gives £250,000 to Independent appeal

Donation brings total raised by Homeless Veterans campaign to at least £1.25m
Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

The most borrowed book at Bank of England library? Oh dear

The book's fifth edition is used for Edexcel exams
Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

Cowslips vs honeysuckle

It's the hunt for UK’s favourite wildflower
Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

Did a botched blackmail attempt help Cyril Smith escape justice?

A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss