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News - 29 June 2007
Giant supermarkets slow down
Both Tesco and Sainsbury’s have shown signs of faltering over the last financial quarter. Both companies seemed to be unstoppable in the race to gobble up market share but now things are slowing down a little.
Various tactics have been used by some of the supermarket giants to expand their foothold such as luring independent traders to sell up family businesses by offering premium rates as well as scooping up all available land plots either to develop or simply to play dog in the manger.
For both Sainsbury's and Tesco sales growth has fallen short of expectations by at least a full percentage point. Both have seen shares tumble – Sainsbury’s dropped 2p while Tesco dropped 11.5p from the share price.
BUSINESS FORUM COMMENT
Some independent retailers may well rejoice at the news but the damage is already done and is unlikely to be undone. The independent sector will probably never recover the family businesses that have been sold to become Tesco Express stores
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