Industry Analysis & Industry Trends
The Salvage Grocery Stores industry has grown quickly over the past five years. During the Great Recession, households began to pinch pennies due to decreases in disposable income and consumer sentiment. Furthermore, the poverty rate increased considerably, forcing more Americans to start shopping at salvage grocery stores. As a result, IBISWorld expects industry revenue to grow at an annualized rate of 5.1% to $4.4 billion in the five years to 2012. While this rate includes an additional 4.9% in 2012, external competition from supercenters and warehouse clubs has been slowly increasing as the economy improves, threatening this industry's growth.
Rapid growth over the period has encouraged new enterprises into the industry.... purchase to read more
Industry Report - Starting a New Business Chapter
Overall, the Salvage Grocery Stores industry has a low barriers to entry. Most companies either buy their inventory directly from manufacturers and food distributors or purchase products from reclamation centers. In some cases, however, preexisting distribution networks between established operators and suppliers may be a barrier for new entrants. Existing operators that have established relationships with their suppliers typically benefit from better pricing negotiations, and operators just entering the industry may not have the same advantage. Nevertheless, there are no formal requirements for entering the industry, as direct licenses are not required to operate a salvage grocery store... purchase to read more