Attention Shoppers: Increasing regulation and competition will hinder industry growth

The Supermarkets and Grocery Stores industry in California has marginally declined over the past five years due to a rising regulatory environment increasing costs, fierce competition from alternative retailers and changing consumer preferences. While California per capita disposable incomes have displayed growth and supported demand for organic and premium foods, stiff competition in the market has not allowed operators to reap the benefits of that demand. Over the five years to 2022, California per capita disposable incomes will continue rising and consumer preferences will continue trending toward healthy eating, thus raising demand for higher-priced products...read more.

Industry Statistics & Market Size
Revenue
$78bn
Annual Growth 12-17
-0.2%
Forecast Growth 17-22
Profit
Employment
311,493
Businesses
8,256

Industry Threats & Opportunities

  • The industry has marginally declined due to a rising regulatory environment and changing consumer preferences
  • Industry operators are contending with the growing popularity of online grocery services
  • The price of agricultural goods is expected to fall as drought conditions break
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration is low with the largest four players accounting for an estimated 28.7% of total industry revenue in 2017. The 2015 merger of Albertsons and Safeway catapulted Albertsons Companies Inc. into the second slot for the largest supermarket and grocery store chain in the state. Although Kroger Co. boasts an estimated 359 stores throughout California (which is less than the number of locations that Albertsons has in the state), its powerhouse Ralphs is considered the oldest supermarket chain in the West, thus firmly establishing the brand as the go-to supermarket in the state. How...purchase to read more.

    Additional Insights for the Supermarkets & Grocery Stores in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets & Grocery Stores in California Industry are

  • Proximity to key markets
  • Access to multiskilled and flexible workforce
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Per Capita Disposable Income in California and Agricultural price index in the Supermarkets & Grocery Stores in California industry impact industry performance..

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    What's in this report

    What is the Supermarkets & Grocery Stores in California Industry?

    The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States. Establishments in this industry retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products. Delicatessens primarily retailing food are also included.

    Industry Products
  • Beverages
  • Other Food Items
  • Other Nonfood Items
  • Fresh and Frozen Meat
  • Produce
  • Drugs and Beauty
  • Dairy
  • Frozen Foods
  • Industry Activities
  • Retailing a general line of food
  • Retailing health and beauty products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per Capita Disposable Income in California
  • Agricultural price index
  • Population of California
  • Healthy eating index

  • Current Performance
  • The rise and fall of industry operators
  • Competition heats up
  • Profit margins remain flat
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition continues to surge
  • Profit and participation
  • Table: Supermarkets & Grocery Stores in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets & Grocery Stores in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Confectionery Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling
  • Grocery Wholesaling

  • Products & Services
  • Other Food Items
  • Beverages
  • Fresh and Frozen Meat
  • Produce
  • Other Nonfood Items
  • Frozen Foods
  • Dairy
  • Drugs and Beauty
  • Chart: Supermarkets & Grocery Stores in California Industry Products and Services Segmentation

  • Major Markets
  • Households earning over $70,000
  • Households earning $30,000 to $69,999
  • Households earning less than $29,999
  • Chart: Major Market Segmentation for the Supermarkets & Grocery Stores in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets & Grocery Stores in California

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Supermarkets & Grocery Stores in California Industry

  • Albertsons Companies LLC, The Kroger Co., Trader Joe's, Stater Bros. Markets,
  • Table: Albertsons Companies LLC - financial performance
  • Table: The Kroger Co. - financial performance
  • Table: Trader Joe's - financial performance
  • Table: Stater Bros. Markets - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets & Grocery Stores in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Supermarkets & Grocery Stores in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Grocery Price Index in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fresh Format
  • Stores that are focused on selling premium perishable goods, such as organic produce.
  • Fresh Format Stores
  • Stores that differ from traditional supermarkets by offering an extensive array of premium organic, ethnic and specialty items.
  • Limited Assortment Stores
  • Stores that are more compact than traditional supermarkets, and low sell a limited variety of low-priced private label items.
  • Point Of Sale System
  • A hardware or software system that traces where a transaction occurs at a retail establishment or store.
  • Premium Brands
  • Brands that are produced by regional, national or international companies. They are typically priced higher than private label brands and are often considered to be of higher quality.
  • Private Label Brands
  • Brands that are offered by retailers and compete with regional, national and international brands.
  • What Our Customers Say

    Why buy this report?

    The Supermarkets & Grocery Stores in California industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Supermarkets & Grocery Stores in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Supermarkets & Grocery Stores in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Supermarkets & Grocery Stores in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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