GROCERY DISTRIBUTION IN THE UK: RECENT CHANGES AND FUTURE PROSPECTS

Developments in UK grocery distribution are reviewed; namely centralised networks, composite networks and the increasing use of third party contract distributors. Issues likely to affect the future development of physical distribution are also discussed, such as the quality of operations, customer service improvements through utilisation of information technology, the “greening” demands likely to be encountered and the opportunity for UK distribution companies to expand their services throughout Europe. The major conclusions are found to be that UK grocery distribution is highly developed; centralised,composite systems are in place either operated in‐house by the user or contracted out to third party distribution companies. Quality, service and greening issues are likely to become the tools operators will use to gain competitive advantage in this highly competitive marketplace both in the UK and throughout Europe.