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United States modern grocery retailing market: 0.8% CAGR expected between 2012-16
Modern Grocery Retailing Market in the US 2012-2016 - a new market research report on 2014-04-17 07:14:02
The United States Modern Grocery Retailing market is to grow at a CAGR of 0.76 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing demand for convenience food. The Modern Grocery Retailing market in the US has also been witnessing the growth of private label brands. However, the intense vendor competition could pose a challenge to the growth of this market.

Private label brands in modern grocery retailing include products that are developed and marketed by retailers who run various retail formats. Such products are available only in stores owned by a particular retailer. Private label brands play a huge role in the growth of a company. These are the products that are low-cost alternatives to regional, national, and international brands. However, these products are also sold as premium products in certain occasions. Modern grocery retailers have been leveraging private label brands to generate higher revenue since these products give higher margins to the retailers. Further, retailers place nationally advertised products with their private label brands in the same shelf space to attract traffic toward its private label brands. Owing to the recession, customers in the US have been increasingly adopting private label brands, as they are cost-effective as compared to national and international brands. Traditionally, these products were viewed as low quality generic alternatives. However, retailers have significantly improved private label brands, both in terms of brand value as well as quality. This is why customers have started developing loyalty toward these products. Therefore, the increasing number of private label brands is one of the key trends that is expected to impact the Modern Grocery Retailing market in the US during the forecast period.

One of the main drivers is the increasing demand for convenience foods. Convenience foods are foods that are easy to prepare, easy to eat, and can be used for more than a single serving. With the growing need to have ample leisure time, consumers are increasingly opting for convenience foods. Further, with the reducing size of households, increasing number of working women, and changing demographics of consumers; the demand for convenience foods has increased significantly.

One of the main challenges is intense competition in the market. Due to the huge market size of the Modern Grocery Retailing market in the US, in terms of revenue, many new vendors are entering the market making it more and more fragmented. Further, existing vendors in the market are coming up with innovative ideas and concepts for their products to differentiate themselves from others and to meet the changing consumer needs.

The key vendors dominating this space include Publix Super Markets Inc., Safeway Inc., SuperValu Inc., The Kroger Co., and Wal-Mart Stores Inc.

The other vendors mentioned are Ahold U.S.A. Inc., Aldi Inc., Delhaize America Inc., HE Butt Grocery Co., Meijer Inc., Sears Holdings Corp., Target Corp., and Tesco plc.

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