2008: A Growth Year for Supercenters, Dollar Stores
Traditional supermarkets are seeing tremendous growth as sales are hitting
their highest mark in seven years. Still, they are and will continue to face
stiff competition from other food outlets such as supercenters and dollar
stores. That's according to "What's In Store 2008," a trends report from the
International Dairy-Deli-Bakery Association.
Here's some of what the report outlines:
Supercenters: These more than tripled from the 708 stores in 1996, to 2,613
outlets in 2006. According to the Nielsen Co., 62 percent of American households
shop at them.
Dollar stores: By 2011, there will be 27,696 dollar stores with sales of $20.6
billion, says the report. Specific to food, this sector will have a retail
market share of 2 percent.
Convenience stores: Convenience store numbers increased to 145,119 by the end of
2006. By 2011, food sales from convenience stores should reach $166.1 billion
from approximately 148,131 outlets, according to IDDBA.
Club stores: Club stores' sales were $63.5 billion in 2006, representing a
market share of 7.4 percent. By 2011, sales will reach $84.2 billion,
representing a market share of 8.2 percent, according to Willard Bishop's
"Future of Food Retailing."
Online shopping: Americans who buy food via the Internet has held steady at 6
percent during the past few years, according to the Food Marketing Institute.
IDDBA reports that online grocery sales could increase as high-speed computer
connections become more common and tech-savvy young consumers start shopping for
Meal-assembly centers: There are now more than 330 meal-assembly companies with
more than 950 locations in North America, with supermarkets starting to enter
the business by offering the service in their stores.