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Their sheer scale may mean that they have been willing to overlook the discount fixed-price market niche upto now.
Here, 'their' refers to supermarket. A discount fixed-price store is considering to open their new store in a town. They are doing a market analysis. They found that supermarkets who sells only branded products doesnt try to compete with discount stores. I couldn't find the meaning of sheer scale yet.
"Their huge size..."
"Scale" is a better choice of word because it carries shades of meaning absent in "size" that are appropriate in this context.
Last edited by ChinaDan; 18-Sep-2016 at 08:48.