Dollar Tree adds pharmacy to FL store

Dollar General has a grocery concept, and now Dollar Tree has a store with a pharmacy. Dollar Tree recently contracted with an independent pharmacy based in Boca Raton, FL, to add a location inside a Deals stores in West Park, FL. (Deals is a Dollar Tree variety store concept.)

Although there are people who have doubts that consumers will trust a dollar store for their prescription drug needs, the concept may very well succeed if it competes well in the areas of price and convenience. These two factors have been driving sales up at dollar stores for some time now as they successfully compete with Walmart and traditional supermarkets.

Walmart to reportedly lower grocery prices

Although Walmart officials remain mum on the subject, several publications have reported that the world's largest retailer is determined to regain its image as the low price grocery leader and lure back customers who are frequenting dollar stores and discount grocery chains.

The speculation is that Walmart is putting pressure on its food suppliers to keep wholesale prices down so they can pass along the savings to customers. And if any retailer has the power to convince wholesalers to absorb cost increases, it's Walmart.

Supermarkets selling less than half the nation's groceries

I read an article in the March issue of Shopping Centers Today this morning about food shopping. It had a number of interesting tidbits:

• Low-income shoppers typically buy 45% of household groceries at a traditional supermarket, 38% at a mass merchandiser (ex. Walmart), and the rest elsewhere (dollar store, drug store, etc.).
• Shoppers with incomes of $100,000 or more spend 56% of their food budget at a traditional supermarket and 17% at a club store.
• Supermarkets used to have 80% of the grocery market; now it's under 50%.
• Walmart accounts for about 33% of the U.S. grocery market; Kroger, Safeway and Supervalu each hold between 4% and 9%. Target holds about 3%.
• Half the respondents to a survey said they would spend more on groceries this year as compared to last year, and nearly 40% said they would spend about the same.
• Seven of 10 respondents to the survey mentioned above said they make at least one trip to the grocery store per week.

You can find the complete story here: Shopping Centers Today

ShopRite, with $1.7 billion in sales, leads Philly market in 2011

Last Friday the Philadelphia Business Journal published the list of top companies in Philadelphia's eight-county area selling groceries, health- and beauty-care products, general merchandise and tobacco products, as compiled by the Food Trade News. Here's the list:

1. ShopRite - 43 stores with sales of $1.7 billion
2. Acme - 69; $1.57 billion
3. Giant - 47; $1.53 billion
4. Wawa - 280; $1.44 billion
5. Rite Aid - 252; $884.1 million
6. A&P (Super Fresh, Pathmark) - 40; $850.8 million
7. Wal-Mart - 37; $831.1
8. CVS - 187; $817 million
9. Genuardi's - 28; $733.7 million
10. Target - 29; $534.3 million
11. Walgreens - 90; $480.9 million
12. BJ's Wholesale Club - 12; $413.9 million
13. Wegmans - 6; $371 million
14. Save-A-Lot - 34; $258 million
15. Sam's Club - 7; $238.2 million
16. Thriftway / Shop n Bag - 21; $230.5 million
17. Redner's Warehouse Markets - 10; $222.7 million
18. KMart - 29; $210.9 million
19. 7-Eleven - 179; $201.3 million
20. Whole Foods - 8; $191.6 million

It's interesting to note that the three major drug stores had 529 stores in 2011. The 10 supermarkets totaled 276 stores (from Wegmans with 6 to Acme with 69).

Here's a link to the original compiler: Food Trade News

Supervalu trying to connect via social media

When thinking of supermarkets at the forefront of something - customer service, competitive pricing, new formats, etc. - we typically think ShopRite, Wegmans, Whole Foods, and perhaps even Walmart. But Supervalu?

As it relates to social media, yes. As Supermarket News Editor-in-Chief David Orgel reported yesterday, Supervalu is proactively embracing Facebook, Twitter and even Yammer, a private social network used by more than 100,000 companies worldwide (according to Yammer.com). Supervalu employees are using Yammer to connect store managers and executives, and to allow employees to share best practices in real time.

The company's store brands (10 in all, including Acme and Save-A-Lot) are connecting with customers via Facebook, and some store directors now use Twitter to communicate with customers about their stores. Soon, individual stores will have their own web landing page.

On a corporate level, Supervalu operates a Twitter feed (@supervaluPR) that posts news for investors and the media, and a career Twitter feed (@SVUCareers) reaches out to potential new hires. YouTube, Foursquare and other social media platforms could eventually see some action as well.

The leadership in this company-wide social media effort comes directly from CEO Craig Herkert, who has a taskforce that develops social media strategies. It's a commendable effort that may help retain customers at risk of leaving, but whether or not it can help win back customers that have already jumped ship (Acme...) is another question entirely.

New Walmart Supercenter in Springfield, PA goes head-to-head with Giant

A 112,133 square foot Walmart Supercenter opened last week in Springfield, PA's Marple Crossroads Shopping Center. The store employs approximately 300 people and features more than 30 merchandise departments, including a full grocery section with fresh produce, meats, dairy products, a deli and bakery.

According to Walmart's website, the average wage for full-time hourly associates in Pennsylvania is $12.15 per hour.

The store opening comes a little more than a year after a 67,000 SF Giant Food store opened less than a half mile away in Springfield Shopping Center.