Prior to Q2 2014, the UK Food Consumer Price Index (CPI) indicated low single digit growth. Since that time, it is indicating a deflationary food price environment. Hence, top-line revenue growth for the big UK grocers has been deteriorating. With this low growth environment, who wins and how? At R Squared Capital Management (former team at Julius Baer / Artio Global) we believe one possible solution could involve an uptick in mergers.