Rise of Budget Stores

B&M Value Retail sales growth slows in UKhttp://www.bbc.co.uk/news/business-33563152

B&M Value offer branded products at prices significantly below the prices charged by supermarkets. Mainly due to purchasing production over-runs and a completely different fixed cost structure. 

However consider how supermarkets such as Merchants are fighting back. Increasing their own-branded product range, by requiring their suppliers to reduce prices and entering price wars. 

Do they pose a threat to Merchants? Consider preparing your own Porters Five Forces analysis of Zeeland’s supermarket industry. 

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