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Industry Analysis. Grocery Stores SIC: 541 NAICS: 445110. General Overview. The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States . Key Economic Drivers: Per capita disposable income Consumer Confidence Index Population.
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Industry Analysis Grocery Stores SIC: 541 NAICS: 445110
General Overview • The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States. • Key Economic Drivers: • Per capita disposable income • Consumer Confidence Index • Population
Key Statistics • Revenue: $ 517.8 bn • Profit: $6.7 bn • Annual Growth 2008-2013: -0.4% • Expected Growth 2013-2018: 0.8%
External Key Drivers Current Performance
Porter’s Five Forces • Industry Competition: High • Bargaining Power of Buyers: Low • Bargaining Power of Suppliers: High • Threat of Substitution: Low • Threat of Entry: Low
Costco (Module 1) • Business environment of grocery stores • Based in Cincinnati, Ohio • 2500 locations in US • Founded 1883 • 1st in size, 2nd revenue, 5th largest retailer in World • Make acquisitions and purchases frequently
Understanding The Kroger Environment • 2012 sales of 96.8 Billion • Kroger Co Family Stores • Brand loyalty and strong local ties are in their core values • Social, environmental, and economic responsibility
Enterprise Operating Activities of Kroger • Operating Costs • Sales growth
SWOT Analysis • Strength- Market Share • Weakness- Vulnerability to economic factors • Opportunities – Expansion into different areas and company acquisitions • Threats- Low barriers to entry, competition