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Grocery Stores & Supermarkets Report Summary

SIC Codes: 5411 5421 5431 5441 5451 5461
NAICS Codes: 445110 445210 445220 445230 445291 445292 445299

Chapters Include

  • Industry Overview
  • Quarterly Industry Update
  • Business Challenges
  • Trends and Opportunities
  • Call Preparation Questions
  • Financial Information
  • Industry Forecast
  • Website and Media Links
  • Glossary of Acronyms
 

Grocery Stores & Supermarkets Industry Overview

Excerpt from Grocery Stores & Supermarkets Report

Companies in this industry operate retail stores that offer a general selection of food products. Major companies include Kroger, Safeway, and (all based in the US), as well as AEON (Japan), METRO (Germany), Royal Ahold (the Netherlands), and Tesco (the UK).

Competitive Landscape

Population growth and consumer tastes drive demand. Because margins are low, the profitability of individual companies depends on high volume sales and efficient operations. Large companies can offer a wide selection of products and have advantages in purchasing, distribution, marketing, and finance. Small companies can compete effectively by offering specialty products, serving a local market, or providing superior customer service. The US industry is concentrated: the 50 largest companies generate about 70 percent of revenue.

Products, Operations & Technology

Nearly three-quarters of products sold are food items, including meats (14 percent); produce (10 percent); dairy products (8 percent); and frozen foods (5 percent). Nonfood items include health and beauty products, general merchandise, and medication (including prescription drugs).

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