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Grocery Retailers in the US

United States grocery retailing market: $973 billion industry in 2012

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2014-02-25 20:44:02 - Grocery Retailers in the US - a new market research report on

Wal-Mart leads the United States grocery retailing market, with 25% value share in 2012. Following Wal-Mart, the second and third leading grocery retailers in the US are Kroger and Safeway with 8% and 3% value shares, respectively. Wal-Mart has a strong national presence, and is therefore able to capture a large proportion of the US population. Due to its size and pricing power, Wal-Mart is often able to offer the lowest prices among competitors across many channels, a clear draw for consumers searching for value. Kroger, which also operates stores in several channels, is further expanding its operations with its Marketplace format, which are supermarkets bordering on hypermarkets, with expanded general merchandise sections.

In line with consumer preferences, grocery retailers embraced



social media tools as a means to reach out to and engage with consumers. With posts for shopping tips, promotions, recipes, and other relevant content, retailers, such as Safeway or Wal-Mart, hoped to build consumer interest and loyalty. As consumers become increasingly savvy about deals and couponing, a more personal touch can help to put off price-cutting strategies. However, this strategy must be well-implemented for it to resonate with followers.

The record-setting drought in 2012 affecting the Midwest damaged major crops, such as corn and soybeans, affecting not just prices for those commodities but for other products along the supply chain, such as milk, beef and packaged foods. Because of this pass-through effect, the impact will continue to last over several years to come, increasing food price inflation above the overall average.

Key Headlines

- Sales of grocery retailers in the US grow by 3% in 2012 to reach US$973 billion
- Among grocery retailers, hypermarkets and discounters experiences the strongest sales growth in 2012, both at 4%, as value remains a primary consideration for consumers
- The number of grocery outlets grows by 1% in 2012
- Grocery retailers competes for consumer spending as channel blurring continues with non-grocery retailers offering more grocery categories
- Grocery retail sales are expected to grow modestly over the forecast period, with a CAGR of 1% in constant value terms

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Mike King
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