Colruyt Group Competition
Now Viewing Colruyt Group's competition in: Grocery Stores and Supermarkets (primary)
Recent Developments
Economic Stimulus to Boost Grocers' Profits - A Goldman Sachs report projects that 7 percent of the average consumer's tax stimulus rebate check will go to food at grocery stores and supermarkets. Higher food and gas prices are expected to weigh heavily on consumers as they consider how to spend the checks. Major supermarket chains Kroger and Supervalu, among others, are offering consumers additional bonuses if they spend their stimulus checks in those stores.
Supermarkets Careful with Nonfood Items - Nonfood items, such as grilling supplies, are a popular way to boost revenues for some supermarkets and grocery stores during summer, but the slow US economy is changing how some retailers mix these items into their stores. According to experts, some retailers have cut the number of nonfood items offered, while others are shifting orders to manufacturers offering shipping discounts. Prices for items such as plastic patio furniture are higher, as are food prices.
Frozen Foods Lead Return to Kitchen - Americans love to dine out, but economic pressures due to a slow US economy and rising prices are pushing them back into the kitchen to cook, using food from grocery stores and supermarkets. A study by the Food Marketing Institute offers proof, noting that 71 percent of consumers are spending more time and money to prepare food at home and are spending less at restaurants. Experts note that frozen foods, in particular, seem to be popular among consumers looking to save on food costs.
Competitive Landscape
Demand for food products is limited by the 1 percent annual growth of the US population. Profitability of individual companies depends on having the right product mix and on efficient operations. There are large economies of scale in operations and purchasing. Small grocers can compete effectively only by offering specialty products or better produce or special services such as take-out food.
Grocery Stores and Supermarkets Industry Forecast
from Hoover's/D&B subsidiary First Research
US personal consumption expenditures of food, a major driver for grocery stores and supermarkets, are forecast to grow at an annual compounded rate of 3.3 percent between 2007 and 2012.
Consumer Spending Growth on Food Slows
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Limited by population growth
- Need good merchandising
- Risk: Slowing economy pushes consumers to low-margin products
Industries Where Colruyt Group Competes
- Retail
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Grocery Retail (primary)
- Natural & Specialty Foods Retail
- Convenience Stores & Truck Stops
- Discount & Variety Retail
- Gasoline Retailers
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Grocery Retail (primary)
