IT'S been described as the 'perfect storm' for supermarkets. Tighter household budgets, online shopping, local convenience stores and discount retailers are hammering the big chains.
For shoppers, it's arguably good news. With more choice and competition, a typical shop is falling in price. Milk, bread and veg costs 0.4 per cent less now than at this time last year.
But the 'Big Four' supermarkets, Tesco, Asda, Sainsbury's and Morrisons, are now engaged in a struggle to keep customers.
Today, the Mail is launching a poll to find out the habits of shoppers around Hull and the East Riding. Scroll down to let us know your favourite places to shop and why.
Patrick Sewell, managing director of Hull convenience chain Sewell Retail, argues people are now spending more money with local retailers.
He said: "The quarterly sales reporting by the big four supermarkets continue to show their declining figures.
"As a local family independent, I cannot escape a wry smile as they undoubtedly face some tough times ahead. They're like oil tankers that cannot turn around quickly enough, set on a course that is going horribly wrong.
"The expensive 'big shop' at the out-of-town shed is becoming less attractive and consumers are shopping locally, in smaller amounts, more often but still demanding value, quality, choice and convenience. The recession has reshaped the consumer habits and those traits are here to stay."
In the 12 weeks to November 9, the amount shoppers spent in big four stores fell by 0.2 per cent, the first decline since records began 20 years ago.
Tesco sales fell by 3.7 per cent in that period, while Morrisons dropped 3.3 per cent and Sainsbury's 2.5 per cent. Asda was the best performer of the four with sales down 0.2 per cent.
Steve Trotter, an economics lecturer at the University of Hull Business School, says part of the reason for the decline is a squeeze on consumer spending. However, he also believes the rise of discount chains is also changing the market.
Aldi sales grew by 25.5 per cent and Lidl 16.8 per cent as shoppers turned to the budget groups. High-end grocery store Waitrose also saw sales increase, by 5.6 per cent.
Dr Trotter said: "The other factor is of course the rise in the discounters, with Aldi and Lidl leading the charge. Their sales have continued to increase in both absolute and relative terms. Much of that growth will have come at the expense of the Big Four, as more of us discover Lidl and Aldi as alternative suppliers, and the latter's expansion plans suggest that we soon won't have to go as far to find one of their stores either.
"At the other end of the market Waitrose has gained an extra 0.3 per cent of the market. Every little hurts, to coin a phrase, if you are one of the Big Four.
"While a return to economic growth will – eventually – turn around the fall in the amount going through the Big Four's tills, regaining market share from the competition at both ends of the market is likely to take somewhat longer."So are you still a dedicated supermarket shopper and if so, where is your favourite supermarket? We've picked the biggest in Hull and the surrounding area to find out which store is most popular and why. Help us sort the discount dealers from the pricey precincts and tell us if you're shopping habits have changed.If you are having problems viewing this form, go directly to the survey here.
• Business news for Hull and East Yorkshire
