EdenTree's Patel: Why Tesco can outlast its food retail rivals

Opportunity to achieve sustainable margins

clock • 3 min read

Ketan Patel, co-manager of the £147m EdenTree Amity UK fund with Sue Round, explains why food retailing still faces challenges and why he expects Tesco to weather the storms.

The food retail space in the UK is undergoing a period of radical transformation. Consumers increasingly buy goods and services online, including food where margins suffer significantly. This growth in online could allow new players, like Amazon, room to gain market share. Challenge one: online Online is the quickest-growing channel in UK food retail, achieving sales growth in the low teens, but still makes up only 6% of grocery sales in the UK. Despite this, the UK has the world's most advanced online market accounting for half of the total global sales.  Who will be the beneficiar...

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