Supermarket prices are much higher in Britain than in the US or in Europe. Profit margins are about three times greater than in France, Germany, Italy and Spain. The main four supermarkets have 60 to 70 percent of supermarket sales. A government report views supermarkets as islands of monopoly. They rarely establish stores close to competitors.
Bakers complain that their loss leader strategy results in predatory pricing below cost.
Nevertheless, consumers pay what is asked. They like the convenience of one-stop shopping. The government report states that although there are four main supermarket chains, supermarkets tend to be islands of monopoly. One consumer remarked that there used to be many retail food stores in her neighborhood. Now consumers pay what is asked.