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Food Wholesaling and Retailing

Food Wholesaling and Retailing. Part B AGEC 364. “Times They Are A Changing”. Compare the Ma and Pa corner grocery with a supermarket! K-Mart, Wal-Mart and Sam’s have entered the food business. “Times They Are A Changing”. K-Mart, WalMart and Sam’s have entered the food business

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Food Wholesaling and Retailing

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  1. Food Wholesaling and Retailing Part B AGEC 364

  2. “Times They Are A Changing” • Compare the Ma and Pa corner grocery with a supermarket! • K-Mart, Wal-Mart and Sam’s have entered the food business

  3. “Times They Are A Changing” • K-Mart, WalMart and Sam’s have entered the food business • Food courts in malls • Pizza delivery • What do they all have in common? They find a consumer need and fill it.

  4. Food Retailing • Largest retail sector in the U.S. • Food retailers must be adept at matching supply with demand; most responsive to changes in consumer demand • Growing share of food dollar going to food service rather than food stores

  5. Food Retailing • Food retailing is the largest retail sector in the U.S. economy with about one-fourth of total U.S. retail sales. • Food retailing firms employ more than 80 percent of all workers in the food marketing system.

  6. Food Retailing • Food retailers must be adept at matching supply with demand; this sector is considered the most responsive to changes in consumer demand. • A growing share of the U.S. food dollar is going to food service rather than food stores.

  7. Food Retailing • Although the terms chainstores and supermarkets are used synonymously today, they developed independently for different reasons.A grocery store is classified as a supermarket if it annual sales exceed $2 million.

  8. Chainstores • A chainstore operation is a group of 11 or more related grocery stores. Chainstores may or may not be supermarkets and supermarkets may or may not be part of a chainstore operation.

  9. Chainstores • Originally a chainstore organization collected several retail outlets under one management in order to secure the price advantage of large-volume buying from wholesalers and processors.

  10. Chainstores • These chainstores aimed for low-cost, large-volume operations and competed with price instead of services. Chainstore market share of grocery store sales rose from 50% in 1956 to 78% in 1996.

  11. Chainstores • The corporate chainstores (A&P, Kroger, American Stores, Winn-Dixie, Safeway, etc. are the national and regional grocery wholesaling operations that are centrally managed.

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