Lecture_3_Retailers_2010s

Lecture_3_Retailers_2010s - Major Players Food Retailers...

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Major Players: Food Retailers, Wholesalers, and Distributors Overview of Grocery Retailing Key Supermarket Characteristics Overview of Food Service Retailers Marketing Mix Considerations
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Two Major Channels Grocery ___retail_______ Wholesalers ____food___ Service Retailers and other outlets ___________
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Traditional Grocery Retailer Distinctions Supermarkets  - full-line with sales  of $2 M or more chain stores - must have at least 11  stores independent stores - up to 10 stores Convenience Stores  - compact  store with limited items FIM supermarket facts Key- supermarket, whare house  store conventional store wholesale  club, and hypermarker.
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Traditional Grocery Channels* Conventional Supermarket superstore  Food/Drug Combo Warehouse Store Super warehouse (Cub) Limited-assortment store (Aldi  and Sav-A-Lot) Other, mainly “corner grocer” conveyance Store (traditional) Convenience Store (gas- based) * See FMI Definitions at end of your Outline
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Non-traditional Grocery Channels* hypermarket Wholesale Club (Sam’s Club) Mini-Club supermarket (Meijer, Wal-Mart,  Kmart) Deep-Discount drugStore  (PharMor, Walgreens, Rite  Aid) * Source: Competitive Edge
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Retail Format Proliferation Specialty Foods Convenience Store Wholesale Club Limited Assortment Warehouse Store Hypermarket Combination Store Superstore Conventional Supermarket Limited Assortment Mom-N-Pop Store Conventional
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Market Share Comparison Source: Bishop Consulting, “The Future of Food Retailing” June, 2009
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Forecasted Changes for 2013 Total Traditional Grocery down to  43.5%  compared to 48.3% in 2008  Primarily due to the lower market  share of Traditional supeermarket Total Non-Traditional Grocery up to  41.0%  compared to 36.4% in 2008 Primarily due to growth from  supercenter Club, Dollar and Drug also projected  to grow slightly It is expected that Non-Traditional  Grocery will have higher market  share than Traditional Grocery by  2014. Source: Bishop Consulting, “The Future of Food Retailing” June, 2009
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Retail Consolidation Market Share of the top 10 supermarkets  players* CR4 concentration ratio 1990  30% 1995 36% 2004 51% 2009 68.7%*** Top 4 = 46.5%**** 35 in 2003 19 in 2002 11 in 2000 20 in 1999 18 in 1998 11 in 1997 Merger and acquisition activity is forecast to  slow down over the next five years.**** Source: * Industry Outlook: Food Channel (Feb. 2002) ** Supermarket News *** The top 10 retailers in North America **** www.ibisworld.com
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2009 Top 10 Food Retailers in North America Company Sales (Billions) Wal-Mart Stores $258.5* Kroger Co $ 77.2* Costco Wholesale Corp
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This note was uploaded on 02/23/2010 for the course FIM 220 taught by Professor Weatherspoon,d during the Spring '08 term at Michigan State University.

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Lecture_3_Retailers_2010s - Major Players Food Retailers...

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