Donut worry: The industry will continue to grow due to rising discretionary income and a growing adult population

The Supermarkets and Grocery Stores industry in Texas has grown steadily over the five years to 2017. Rising per capita disposable income in Texas has led many consumers to shift to premium food products. Additionally, generic foods have grown in popularity, as operators have invested in these products during the period. While a shift toward more generic goods curbs revenue growth to some degree, it helps operators maintain profit margins, as store brands are less costly to produce than national brands. Over the five years to 2022, the industry is anticipated to grow steadily, resulting from rising discretionary income and a growing adult population. Additionally, as health concerns become more prominent, more consumers will seek all-natural and organic products...read more.

Industry Statistics & Market Size
Revenue
$57bn
Annual Growth 12-17
3.6%
Forecast Growth 17-22
Profit
Employment
212,043
Businesses
3,496

Industry Threats & Opportunities

  • As health concerns become more prominent, more consumers will seek all-natural and organic products
  • The industry has experienced increasing pressure from online retailers
  • Retailers in the industry will experience heightened competition from online stores
  • Industry Report - Industry Investment Chapter

    The Supermarkets and Grocery Stores industry in Texas 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, $0.10 will be spent on capital in 2017. This figure is slightly higher than the $0.09 in 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 in Texas Industry

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

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    What's in this report

    What is the Supermarkets & Grocery Stores in Texas Industry?

    The Supermarkets and Grocery Stores industry in Texas makes up the largest food retail channel in the state. 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
  • Other foods
  • Beverages
  • Dairy Products
  • Frozen Foods
  • Other nonfood items
  • Fresh and frozen meat
  • Drugs and health products
  • Fruits and vegetables
  • 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 Texas
  • Agricultural price index
  • Number of adults aged 20 to 64 in Texas
  • Healthy eating index

  • Current Performance
  • Sunny spots
  • External competition
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Online competition
  • Industry participation
  • Table: Supermarkets & Grocery Stores in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets & Grocery Stores in Texas 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
  • Fruits and vegetables
  • Chart: Supermarkets & Grocery Stores in Texas Industry Products and Services Segmentation

  • Major Markets
  • Fourth income quintile
  • Highest income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Supermarkets & Grocery Stores in Texas Industry

  • 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 in Texas

  • Basis of Competition
  • Internal competition
  • External competition

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

  • H-E-B Grocery Company LP, The Kroger Co., Albertsons Companies LLC, ALDI US, Trader Joe's, Whole Foods Market,
  • Table: H-E-B Grocery Company LP - financial performance
  • Table: The Kroger Co. - financial performance
  • Table: Albertsons Companies LLC - financial performance
  • Table: ALDI US - financial performance
  • Table: Trader Joe's - financial performance
  • Table: Whole Foods Market - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets & Grocery Stores in Texas 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 Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer spending in Texas (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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 Texas 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 Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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