Management 3830 Industry Analysis II - Grocery Store Notes.pdf - Tuesday October 1 2019 Management 3830 Industry Analysis II 2018 Revenues • Kroger

Management 3830 Industry Analysis II - Grocery Store Notes.pdf

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Tuesday, October 1, 2019 Management 3830 Industry Analysis II - 2018 Revenues Kroger: $122 Billion Walmart: $514 Billion - Not a traditional grocery store Amazon: $232 Billion Sprouts Farmers Market: $5.2 Billion Costco: $141 Billion - Membership model - Not a traditional grocery store - - Net margins Kroger: 2.5% - For every dollar of sales they only get $0.25 cents Walmart: 1.3% - Low margin Amazon: 4.3% - Extremely high for Amazon historically - 8.3% margins on their AWS (Amazon Web Services) Cloud computing services Snapchat, Lyft, Pinterrest, along with a. Variety of the apps and companies that you know well Sprouts Famers Market: 3.1% - Pretty average for a grocery store 1
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Tuesday, October 1, 2019 Costco: 2.2% - Trader Joes, blue ocean company Lots of culture, experience, private label Di ff erentiation and cost leadership strategies - Five forces landscape Traditional grocery stores - Albertsons, Kroger, Publix, Safeway, Winn-Dixie, Rouses, HEB, Walmart Neighborhood Market Threat of substitutes - Walmart and Target Not traditional grocery stores, do a lot more than just that Walmart is the market share leader in the world today Whenever Walmart is in your landscape of competition, it is bad news - Costco and Sams club Membership clubs Bulk providers Not as frequent of trips Di ff erent location strategy Larger format stores - Organic di ff erentiators Whole Foods - Having Amazon on your landscape is also bad news Downward pressure on prices, technological capabilities, have competitive advantages Fresh Market Sprouts 2
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  • Industry Analysis, Grocery store

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