|Title:||United States supermarket performance with sales in dollars, sales per store, number of units, sales and store count by format, and percent change for 2011|
Start of full article - but without data
SUPERMARKET PERFORMANCE SALES Results % Change vs.'lO
Supermarket Sales $XXX.X bil +X.X% Average Sales per Store $XX.X mil +X.X% Supermarket Industry Net Profits $X.X bil -X.X% Net-to-Sales Ratio X.X% - Chain Supermarket Sales (XX% of total) $XXX.X bil +X.X% Independent Supermarket Sales (XX% of $XX.X bil +X.X% total)
STORES No.of Units % of Total % Change vs.'lO
Total No. of Supermarkets XX,XXX XXX% +X.X% Chain Supermarkets XX,XXX XX% +X.X% Independent Supermarkets X,XXX XX% -X.X%
SALES BY FORMAT $ Volume % of Total % Change vs.'lO
Conventional Supermarkets $XXX.X bil XX.X% +X.X% Superstores* $XXX.X bil XX.X% +X.X% Food/Druci Combo Stores ** $XXX.X bil XX.X% +X.X% Supercenters *** $XXX.X bil XX.X% +X.X% Warehouse/Super Warehouse $X.X bil X.X% -XX.X% Wholesale Clubs **** $XX.X bil X.X% +X.X% Organic/Natural Supermarkets $X.X bil X.X% +XX.X%
STORE COUNT BY FORMAT
No. of Units % of Total % Change vs.'lO Conventional Supermarkets XX,XXX XX.X% +X.X% Superstores XX,XXX XX.X% +X.X% Food/Drug Combination Stores X,XXX XX.X% - Organic/Natural Supermarkets XXX X.X% +X.X% Wholesale Clubs ***** X,XXX N/A +X.X% Supercenters ***** X,XXX N/A +X.X%
* Supermarkets of at least XX,XXX square feet with extensive
assortments of food and general merchandise.
** Units of at least XX,XXX square feet with separate
grocery and drug/general merchandise sides of
approximately equal size and common checkstands.
*** The food and general merchandise stores operated
by Walmart, Target Corp., Meijer Inc., Kmart and
Fred Meyer Inc.
**** For grocery products only.
***** Supercenters and wholesale clubs are not
included in the supermarket store count total but
instead are listed in the discount store total.
Editor's Note: Where the supermarket within a
combination store, supercenter or warehouse club
is operated by a retailer identified primarily
as a general merchandise retailer (i.e., Walmart,
Costco) only the grocery volume is included in the
sales. The entire square footage is included in the
discount store chart. Where the format is operated
by a supermarket retailer total store volume is
included. Chains are defined here as four or more
stores commonly owned.
Source: Racher Press research
NEW YORK--Like the rest of mass market retailing, the supermarket industry encountered plenty of challenges in 2011, but it also displayed resilience and some creativity in fending off competition.
Like other trade classes, supermarkets had to contend with a consumer who remains wary in the face of a still-uncertain economy (see story on this page). At the same time, competition for the food shopper's dollar has intensified as other retail channels have discovered the lure of groceries as a traffic builder.
In fact, while supermarkets have faced a succession of competitive challenges over the past few decades, the current scene perhaps displays more rivals than ever before. Supercenters operated by discounters such as Walmart, Kmait and Target Corp. have been eating supermarkets' share for years, but more recently those chains have expanded the grocery offerings in their regular general merchandise outlets as well. Target, of course, has gone beyond that to install perishable food departments through its PFresh remodel program.
While warehouse clubs do not have the store density to impact every market, the major chains all have expanded their sales of food, and fresh food items are a major draw for both Costco Wholesale Corp. and BJ's Wholesale Club Inc., making them serious contenders for the business of nearby supermarkets.
In the drug channel, both Walgreen Co. and CVS/pharmacy have added fresh items to select locations, particularly in the city, and Rite Aid Corp. is testing its own approach.
Even dollar stores are getting into the act. Both Dollar General Corp. and Family Dollar Stores Inc. have installed coolers and expanded sales space for food and grocery, which has proven to be an invaluable way to build shopping frequency and expand customers' purchases. Moreover, Dollar General has updated and refined its Dollar General Market format and is now rolling it out in appropriate locations.
According to Dollar General chairman and chief executive officer Rick Dreiling, the stores represent a new iteration of the general store concept, where customers can find essential items at sharp discounts in a convenient, easy-to-shop format. To maximize that convenience, the company positions such frequently purchased items as bread and milk near the entrance for quick customer access.
At the recent National Frozen and Refrigerated Foods Executive Conference, Brian Todd, president of the Food Institute, singled out the growing challenge of the rapidly expanding dollar stores, noting that some sources predict as many as XX,XXX of the outlets in the United States by 2020.
"Faced with more and more places for consumers to purchase food, traditional supermarkets have to compete more aggressively for budget-conscious consumers," Todd said. "At the same time, however, food marketers can now approach more diverse types of retailers to sell their products to."
For its part, Walmart is upping the pressure by revving up deployment of its Neighborhood Market format. The XX,XXX-to XX,XXX-square-foot stores, which essentially are food/drug combo stores with a beefed-up general merchandise offering, allow the retailer to penetrate markets that cannot support a Supercenter, whether urban, suburban or rural.
The Neighborhood Market is a major vehicle of Walmart's big push in California, where it has announced plans to open XX Neighborhood Markets. One is slated for downtown Los Angeles, two for densely populated Orange County, and one each in Ventura and San Diego counties. Those openings will put more pressure on the traditional supermarkets operated by Kroger Co., Safeway Inc. and Supervalu Inc.
Traditional supermarkets are fighting back with their more extensive assortments, stronger perishables and--at some chains--a greater focus on service to offer a superior shopping experience. For instance, some supermarket chains are offering curbside pick-up in an effort to match or beat the convenience of a quick trip to a dollar or drug store or adding fill-in grocery items to the basket while in a discounter.