Supermarkets Top Alternative Formats (Part 1)

1 2016alternativeformats

Now more than ever, alternative formats like mass merchandisers, natural food retailers, dollar stores and even drugstores are encroaching on supermarket food sales. The following companies from the 2016 Top 75 list of U.S. and Canadian retailers represent the alternative formats with the most food sales.

1Walmart

1. Wal-Mart Stores

Annual sales: $247.5 billion (estimated, consumables only)

2costco

2. Costco Wholesale Corp.

Annual sales: $69.4 billion (consumables only)

3CVS.jpg

3. CVS Health

Annual sales: $44.4 billion (estimated, consumables only)

4Target.jpg

4. Target Corp.

Annual sales: $34.2 billion (estimated, consumables only)

5Walgreens.jpg

5. Walgreen Co.

Annual sales: $28.3 billion (estimated, consumables only)

6Meijer_0.jpg

6. Meijer, Inc.

Annual sales: $16.9 billion (estimated)

7WholeFoods.jpg

7. Whole Foods Market

Annual sales: $15.4 billion

8DollarGeneral.jpg

8. Dollar General Corp.

Annual sales: $15.3 billion (estimated, consumables only)

9_7Eleven.jpg

9. 7-Eleven

Annual sales: $13.3 billion (estimated, consumables only)

10TraderJoes.jpg

10. Trader Joe’s Co.

Annual sales: $13 billion (estimated)

2015 Top 50 Small Chains and Independents.

2016-01-02_18-07-36

    1. Fareway Stores 2015
    2. Inserra Supermarkets 2015
    3. Marsh Supermarkets 2015
    4. Northgate Gonzalez Market 2015
    5. Lowe’s Market 2015
    6. PAQ 2015
    7. Rouses Enterprises 2015
    8. Vallarta Supermarkets 2015
    9. Cardenas Markets 2015
    10. Redner’s Warehouse Markets 2015
    11. Festival Foods 2015
    12. Fairway Market 2015
    13. Jerry’s Enterprises 2015
    14. King Kullen Grocery Co. 2015
    15. Niemann Foods 2015
    16. Homeland Stores 2015
    17. Harps Food Stores 2015
    18. Foodland Super Market 2015
    19. Dierbergs Markets 2015
    20. Lund Food Holdings 2015
    21. Lewis Food Town 2015
    22. Cosentino’s Food Stores 2015
    23. Glass Gardens 2015
    24. Roche Bros. Supermarkets 2015
    25. Kings Food Markets 2015
    26. Natural Grocers by Vitamin Cottage 2015
    27. Heinen’s 2015
    28. Martin’s Super Markets 2015
    29. Gelson’s Markets 2015
    30. All American Quality Foods 2015
    31. Ball’s Food Stores 2015
    32. Reasor’s 2015
    33. Sedano’s 2015
    34. Harmons 2015
    35. Brown’s Super Stores 2015
    36. Pyramid Foods 2015
    37. Perlmart 2015
    38. Fred W. Albrecht Grocery Co. 2015
    39. Haggen Inc. 2015
    40. Good Food Holdings 2015
    41. Miner’s 2015
    42. RoNetco 2015
    43. Stew Leonard’s 2015
    44. Earth Fare 2015
    45. B&R Stores 2015
    46. Tawa Supermarket 2015
    47. E&H Food Group 2015
    48. Mi Pueblo Food Centers 2015
    49. Town & Country Grocers 2015
    50. C&K Market 2015

Walmart leads 2015 Top 25 Global Retailers.

2015-08-04_09-38-34

A shifting focus toward smaller retail formats and the strong U.S. dollar influenced Planet Retail’s list of the Top 25 Global Retailers, on which Walmart, Costco and Carrefour took the top three spots, respectively.

The ranking is based on 2015 sales in U.S. dollars, which Planet Retail has forecast for the year while taking into account historic performance, store opening projections (which are reflected in store counts provided) and an estimated comparable store growth rate.

With a projected $527.8 billion in sales, Wal-Mart Stores bests all other international retailers by a wide margin, according to Planet Retail.

“Walmart remains by far the leading player but will not rest on its laurels,” noted Robert Gregory, head of advisory for London-based Planet Retail. “In fact, there are a number of key strategic initiatives it is pursuing at home and abroad.”

These include restoring performance in some faltering international markets and focusing on e-commerce around the world.

“Walmart was initially slow to embrace e-commerce, but is making up ground fast with global e-commerce sales growing at more than 20% per annum,” Gregory said.

While the Bentonville, Ark.-based retailer has online operations in most countries in which it operates, its key markets for digital sales are the U.S., U.K., Brazil and China, according to Gregory. Walmart considers Asda in the U.K. and Yihaodian in China to be best-in-class for e-commerce, he said.

No. 2 retailer, Issaquah, Wash.-based Costco Wholesale Corp., with a projected $127.9 billion in sales, has about 70% of its 687 outlets in the U.S., according to Gregory who said it is scheduled to open 24 new stores by fiscal year 2015.

“While the growth of ancillary businesses and an expanded service offering should boost domestic sales, international club expansion will drive new member growth, which will propel a stronger bottom line,” he said. “The first store in France is scheduled for 2016, following on from entry into Spain in 2014.”

French retailer Carrefour is No. 3, with $119.8 billion in sales when converted to U.S. dollars, and 12,965 outlets.

Gregory noted that despite increasing sales in their local currency, many European and Japanese retailers declined their ranking on the list due to currency exchange rates to the U.S. dollar.

Kroger, with $116.4 billion in sales and 3,750 stores takes the No. 4 spot, followed by Tesco.

The U.K.-based retailer is coming off a “nightmare year, rocked by leadership changes, the accountancy scandal, negative like-for-like sales and a record loss,” according to Gregory. “Further disposals are likely [such as Dunnhumby] and international markets such as South Korea, as it looks to rebuild its balance sheet and generate funds to invest in the U.K.”

While the outlook for Tesco and its 7,990 stores isn’t all doom and gloom, it still has a fair amount of challenges ahead.

“Tesco is currently on a journey and recent trading has actually improved and it is actually performing stronger than rivals such as Walmart’s Asda,” added Gregory. “However, it will be a long journey and with like-for-likes at its hypermarkets continuing to decline and with store openings being scaled back, Tesco is likely to fall further down the global ranking in the coming years.”

7-Eleven parent Seven & I, is the No. 6 retailer with $101.4 billion in sales across 38,009 outlets which include its retail banners and its nonfood offerings such as department stores.

U.S. invasion

It’s followed in the ranking by Lidl parent, Schwarz Group, with $99.7 billion in sales. Earlier this summer, Lidl confirmed plans to expand beyond Europe for the first time, to the U.S., but these stores are not expected to open in the near-term and therefore did not factor into Planet Retail’s projections. Schwarz Group has also announced market entries in Serbia (Kaufland, Lidl) and Lithuania (Lidl), according to Gregory.

With $96.2 billion in sales, U.S.-based Walgreens Boots Alliance is ranked No. 8. Its position was boosted by Walgreen’s acquisition of the remaining 55% of Alliance Boots that it did not own, to form the first global pharmacy-led, health and wellbeing enterprise and the largest purchaser of prescription drugs in the world.

Japanese retailer Aeon is No. 9 on the list with $92.1 billion in sales and 19,171 total outlets. And rounding out the top 10 is Aldi, which, according to Gregory, is among the retailers who’ve slipped down the ranking due to an unfavorable EUR-to-USD exchange rate.

Aldi’s expansion plans include new stores in a range of markets including some in Western and Southern Australia and West Coast and Southern California stores in the U.S. In addition to acquiring the Bottom Dollar chain from Delhaize, it hopes to more than double its stores in the U.K. by 2022, according to Gregory.

Minneapolis-based Target Corp., No. 11 on the list, “will accelerate small-box and urban expansion, via TargetExpress and to a lesser extent CityTarget,” said Gregory. “After having opened its first TargetExpress location last summer in its home market of Minneapolis, Target is set to open eight additional locations in 2015, more than half of its total planned store openings for the year.”

With $79.9 billion in sales, France-based Auchan is the 12th ranked retailer, followed by Metro Group (No. 13) with $77.9 billion in sales.

No. 14 on the list, CVS, with $70.5 billion in sales and 7,923 stores will continue to expand organically as well as benefit from the store-within-a-store concept that will result from its purchase of Target’s 1,660 in-store pharmacies and 80 in-store clinics, Gregory said.

“A clear trend amongst all players on the ranking is the shifting focus towards smaller formats,” he told SN. “Even the likes of Walmart are trying to decrease the proportion of sales from big-box stores as they look to embrace smaller formats, such as Walmart to Go and Walmart on Campus.

“In addition, investing in stores to make them a more integral part of the online shopping experience has become a priority with all leading players introducing click and collect facilities across their store networks. Clearly, this will be part of their attempts to reinvent the weak performing big-box stores, as well as measures such as improved service, greater use of in-store technology and trying to cater to the mobile shopper in the stores.”

Other notable retailers on the list include No. 19 Albertsons, with $56.8 billion in sales, whose ranking was boosted as a result of its merger with Safeway, and No. 22 Ahold, whose $46.7 billion sales projection does not include its forthcoming merger with Delhaize, according to Gregory.

Save Mart introduces new Lucky California concept.

E4M9CK Lucky grocery store, California, USA. Image shot 2014. Exact date unknown.

Save Mart Supermarkets said Wednesday it has unveiled a new concept — called Lucky California — at one of it Lucky-banner stores, designed to serve the specific needs of customers in the San Francisco Bay Area.

The company plans to test and tweak the concept at the initial location — in Daly City, Calif., about 10 miles south of San Francisco — before rolling it out to other Lucky units, with the intention of converting all 72 Bay Area Luckys to new Lucky California banner, Nicole Pesco, co-president and chief strategy and branding officer, told SN.

She said the company also plans to introduce a separate new merchandising concept at the 99 Save Mart-banner stores it operates in California’s Central Valley — a concept that will be unveiled sometime in 2016 at a ground-up location, Pesco noted.

She said the Lucky California concept is “an opportunity within the traditional grocery world to raise expectations a little bit, so we’re testing ideas at the Daly City store to see what works before rolling it out chainwide.”

However, she told SN she was reluctant to discuss too many details about the concept “until we see what works.”

She said the store “definitely has a different look and feel [than a conventional supermarket]. It still has all the traditional offerings, but on top of that, we’ve added more items above and beyond what you see in a traditional store.

“There are the usual departments around the perimeter — produce, meat, deli and bakery — and then stores-within-a-store in each section based on what consumers might experience in a restaurant or other supermarkets that are not traditionally found in a grocery setting.

“For example, we might have Thai chicken curry in the hot foods section of the service deli, plus the ingredients for customers to make it at home and recipes to make the item more accessible.

“Featured items and recipes will be available on a rotating basis, but there are no hard and fast rules on how often items will rotate in and out. The goal is to create a discovery every time the customer comes in.”

Lucky California stores will also feature local products — not just from area farms, but also from Bay Area producers, manufacturers, chefs and purveyors “[to] truly deliver the flavors of California,” Pesco said.

Lucky California also features a new logo —a kaleidoscopic design that a spokeswoman said shows the top view of an artichoke, “which not only represents California agriculture but also is a good illustration of cultures coming tougher,” she told SN.

Pesco said customers will determine the timing of the rollout of the Lucky California banner. “What we intend to do is test, learn, tweak and do more testing, and then begin introducing those elements that work at other Lucky locations. It’s all about having a stronger food philosophy in line with the way consumers in the Bay Area eat.”

The Daly City Lucky is a 61,000-square-foot store that was selected for the new approach, Pesco said, “because its diverse demographics made it feel like the right store to test this concept. It fit the mold of what we want to do, and because it’s such a large store, it offers the space to test a lot of different things.”

In a press release the company said the store’s offerings “will reflect the diverse cultures, delicious cuisine and locally grown foods that have been inspired in this region. The store’s new display concept will feature constantly changing snack and meal hubs where shoppers will be encouraged to try new flavors.”

Save Mart accepting Apple Pay

appaysave

Save Mart Supermarkets said Thursday it is now allowing customers to buy groceries using Apple Pay, a mobile payment system.

The service is available at all 217 Save Mart, Lucky and FoodMaxx stores in Northern California and Northern Nevada.

According to Nicole Piccinini Pesco, co-president and chief strategy and branding officer, “We are working diligently to transform the shopping experience for our customers, and this cutting-edge technology will help to speed them through checkout.

“Accepting Apple Pay provides shoppers a secure and private way to pay for their groceries, and we’ve added support for this new mobile payment method solely for their benefit and convenience.”

Save Mart, based in Modesto, Calif., said the system is secure because when customers add a debit or credit card to Apple Pay, the actual card numbers are not stored on the mobile device or on Apple servers; instead, a unique device account number is assigned, encrypted and stored in the secure element on the mobile device, with each transaction authorized with a one-time security code rather than by the code on the back of a bank card.

Este sitio web utiliza cookies para que usted tenga la mejor experiencia de usuario. Si continúa navegando está dando su consentimiento para la aceptación de las mencionadas cookies y la aceptación de nuestra política de cookies, pinche el enlace para mayor información.plugin cookies

ACEPTAR
Aviso de cookies