Pyrrhus at the check-out: British food retailing.

The Economist (US) | October 8, 1994 | Copyright

A BOUNTEOUS decade for Britain's big supermarket chains ended abruptly last year thanks to the arrival of discount stores. Selling a limited range at prices as much as 30% below those of the mainstream supermarkets, these low-cost interlopers quickly grabbed a tenth of Britain's Pounds 50 billion ($80 billion) grocery market. Investors expected them to double that share by 2000; accordingly, they marked down the shares of the large supermarket firms.

But the price war started by the discounters is now backfiring. On October 3rd Shoprite, most of whose 108 discount stores ...

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