June 25, 2012: Nontraditional Formats Stem Supercenter Gains

Fast-growing nontraditional grocery-retailing formats such as limited-assortment banners and natural and organic specialists, combined with a handful of high-performing traditional supermarket banners, have helped slow the industry’s market-share losses to the warehouse and supercenter formats in recent years, according to an analysis of government sales data by DSR Marketing Systems, Northbrook, Ill. The total grocery market grew 14% during the 2007-2011 time frame, to $645 billion, the analysis found. And while supermarkets lost share as a group during that time, the rate of decline slowed as the “growth formats” and some traditional chains like Publix Super Markets and Kroger made up for the declines of others. “The rate of decline in supermarket share is slowing markedly,” said David Rogers, president of DSR. The rate of share decline was -1.3% between 2007 and 2011 for supermarkets, or -0.325% per year, vs. -5.8% between 2002 and 2007, or -1.16% per year, he calculated.

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