The Big Question: Are supermarkets a good investment for bargain hunters?

Are supermarkets a good investment for bargain hunters?

Tesco, Sainbury's and Morrison have all seen their share prices slump, as discount retailers continue to dangerously eat into their market share. Is there still value in their sliding share price, or is this a structural evolution for the sector?

  Mark Swain, fund manager, Smith and Williamson Under pressure Supermarkets have been a poor investment over the past year and, although the short theme is possibly nearer the end than the beginning, it is unlikely all the pain has been felt.  Hard discounters such as Aldi and Lidl are estimated to hold around 7% of the food market in the UK and, until they reach the levels typically held in Europe, it is difficult to see how profit margins at the quoted UK supermarkets will not continue to come under pressure.  The consumer trend towards convenience shopping, whereby the...