Shop smart: Increasing premium brand sales and healthy eating trends will spur growth

The Supermarkets and Grocery Stores industry has grown over the past five years, benefiting from a strengthening economy. As per capita disposable income increased during the period, many consumers shifted to premium, organic and all-natural brands, helping lift industry revenue. Conversely, inflationary food costs have caused many consumers to continue purchasing private-label brands even after the recession. While a shift toward more generic goods curbs revenue growth, it helps operators maintain profit margins, as store brands are less costly to produce than national brands. Over the next five years, the industry is anticipated to grow steadily, resulting from rising discretionary income and consumer preferences...read more.

Industry Statistics & Market Size
Revenue
$608bn
Annual Growth 12-17
0.9%
Forecast Growth 17-22
Profit
Employment
2.7m
Businesses
66,254
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Industry Threats & Opportunities

  • Despite revenue growth during the period, industry operators experienced intensifying competition from alternative retailers
  • Operators experience a steady level of demand for food and nonfood items
  • Over the next five years, the industry will benefit from a strengthening US economy
  • Industry Report - Industry Investment Chapter

    The Supermarkets and Grocery Stores industry exhibits a low level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimated that for every $1.00 spent on labor in the industry, $0.09 will be spent on capital in 2017, remaining unchanged from 2012. Capital expenditure for the industry includes the purchase of store assets such as cash registers and shelving. While most industry operators invested relatively small portions of their revenue on capital goods, many of the large supermarkets implemented new technology. For instance, the introduction of computerized point of sale systems and self-checkout systems has increased supermarkets' dependence on capital to improve operating efficiencies. Adv...purchase to read more.

    Additional Insights for the Supermarkets & Grocery Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets & Grocery Stores 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 and Agricultural price index in the Supermarkets & Grocery Stores industry impact industry performance..

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    What is the Supermarkets & Grocery Stores 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
  • Fruit and vegetables
  • Fresh and frozen meat
  • Dairy products
  • Beverages
  • Frozen foods
  • Other foods
  • Other nonfood items
  • Drugs and health products
  • 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
  • Agricultural price index
  • Urban population
  • Healthy eating index

  • Current Performance
  • Growth from nontraditional store formats
  • Competitive environment
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry trends
  • Online competition
  • Profit and participation
  • Table: Supermarkets & Grocery Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets & Grocery Stores 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 foods
  • Beverages
  • Dairy products
  • Other nonfood items
  • Fresh and frozen meat
  • Frozen foods
  • Drugs and health products
  • Fruit and vegetables
  • Chart: Supermarkets & Grocery Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households earning less than $30,000
  • Households earning $30,000 to $70,000
  • Households earning $70,000 or more
  • Chart: Major Market Segmentation for the Supermarkets & Grocery Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets & Grocery Stores

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    The Kroger Co.Albertsons Companies LLC Publix Super Markets Inc.
  • Table: The Kroger Co. - financial performance
  • Table: Albertsons Companies LLC - financial performance
  • Table: Publix Super Markets Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets & Grocery Stores 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 Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • Why buy this report?

    IBISWorld’s industry research report on Supermarkets & Grocery Stores can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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