1 / 15

U.S. Food Retail

Be able to differentiate between different types of Food Retail outlets: Supermarket, Convenience Store, Superette, Supercenter, Warehouse Club. Understand U.S. Food Retail sales trend and where growth has occurred.

Donna
Download Presentation

U.S. Food Retail

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Be able to differentiate between different types of Food Retail outlets: Supermarket, Convenience Store, Superette, Supercenter, Warehouse Club. • Understand U.S. Food Retail sales trend and where growth has occurred. • Be able to explain what has happened to the number of Supermarkets in the U.S. relative to the amount of Supermarket floor space and the number of unique items per store. • Explain where concentration in this industry is occurring and whether consumers should be worried. • What have been the challenges to “On-Line Shopping” • Where has the U.S. Food Retail industry focused improving productivity while lowering operational costs? U.S. Food Retail EconS 451: Lecture #4 Source: U.S. Food Marketing System, 2002, ERS-USDA

  2. Retail Definitions Source: U.S. Food Marketing System, 2002, ERS-USDA

  3. Distribution of U.S. Foodstore sales Source: U.S. Food Marketing System, 2002, ERS-USDA

  4. Source: U.S. Food Marketing System, 2002, ERS-USDA

  5. Source: U.S. Food Marketing System, 2002, ERS-USDA

  6. Number of Supermarkets and Sales Source: U.S. Food Marketing System, 2002, ERS-USDA

  7. Supermarket Definitions: Source: U.S. Food Marketing System, 2002, ERS-USDA

  8. Loss of Market Share • Conventional supermarkets have lost significant market share to Supercenters and Warehouse clubs. Their strategy to compete is to: • Focus on natural foods • More pre-prepared foods • Promote store/private labels • Promote frequent shopper discounts • On-line home shopping • Self-Checkout • More personalized Source: U.S. Food Marketing System, 2002, ERS-USDA

  9. Challenges to On-Line Shopping • Meeting customers expectation on timely delivery • Access to delivery locale in all weather conditions • Spoilage for perishables like milk, ice cream, damaged fruit, etc. • Inflated delivery costs in low/density areas. Primary reasons why success has been in high-density cities. Source: U.S. Food Marketing System, 2002, ERS-USDA

  10. Retail Mergers / Divestures Source: U.S. Food Marketing System, 2002, ERS-USDA

  11. Concentration in Food Retail • National Concentration has increased substantially, local market concentration has only increased slightly due to anti-trust oversight and monitoring. • Between 1992-1998 C4 ratio of national grocery retailers increased 68.6% while the C4 ratio among the largest 100 cities increased 5.4%. Source: U.S. Food Marketing System, 2002, ERS-USDA

  12. Sales of Top Grocery Wholesalers Source: U.S. Food Marketing System, 2002, ERS-USDA Food Retail World - Leading Retailers

  13. Productivity and AverageHourly Earnings Source: U.S. Food Marketing System, 2002, ERS-USDA

  14. Foreign Owned Food Retailers Source: U.S. Food Marketing System, 2002, ERS-USDA

  15. Summary! • Retail food sales growth has been slow due to slow population growth and growth of fast-food sales. • The number of supermarkets has declined while average floor space has increased, understand the benefits associated with this market shift. • Nontraditional supermarkets have focused on all natural specialty products (Wild Oats, Whole Foods, Trader Joes). • Implications for industry concentration related to upstream purchasing power relative to ability to increase price to consumers. • Understand food retail employment productivity changes relative to average earnings per employee. • Foreign investment in U.S. Food Retail still relatively small, but investment of U.S. Food Retail from abroad is growing. Source: U.S. Food Marketing System, 2002, ERS-USDA

More Related