Monday, September 10, 2012

Report says supermarket share loss will slow

A report issued last week by Moody's Investors Service predicts that the rate at which supermarkets have been losing share to alternative formats in the last 10 years will slow. According to the report, sales-building strategies by leading grocers such as Kroger, Wegmans, Safeway, Whole Foods and others will successfully attract customers.

However, "the performance gap between efficient operators who evolve with the changing competitive landscape... and those that don't will widen," according to a Moody's analyst. (In other words, Giant and ShopRite will continue to grow at the expense of other traditional supermarkets in Greater Philadelphia that have been struggling.)

The report says that supermarkets' share of food eaten at home in 2010 was 64.5% compared to 72.1% in 2000. Big box stores like Costco and Walmart, as well as dollar stores and discount supermarkets (Aldi, Bottom Dollar, Save-A-Lot) are largely to blame for the share loss.

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