Recognized as store traffic-generators, grocery center store categories have been a prime target for competing channels, who have dramatically expanded their presence over the past decade --capturing a substantial share of consumer spending.
Over the past four years alone, the grocery channel lost three share points –over $7 billion –to other channels, with share losses in 83% of center store categories.
While supercenters were the primary beneficiary, club and drug stores also gained.
This past year, however, has been a turning point for grocers across center store categories. Share loss occurred, but at a much slower pace.
And, while supercenter gains were sizable, they were sourced not only from grocery, but also from traditional mass merchandisers and dollar stores.
Grocers appear to have successfully stemmed the flow of center store dollars to other channels.
Source: IRI Consumer NetworkTM; 52 weeks ending 8/20/07 and same period prior years