Discounters Dominate Oklahoma City's Market Share

ELLIOT ZWIEBACH

EVERYTHING'S not OK in Oklahoma City, if a local columnist's readers reflect local sentiment.

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In a market comprised of Wal-Mart and a host of independents, some residents wonder why their choices are so limited, and why there are no operators like Whole Foods, Trader Joe's or Fresh & Easy in the area.

One of the problems may be the state's liquor laws, which prohibit the sale of wine in grocery stores. It isn't clear if anyone is making an effort to change that legislation in the foreseeable future.

Meanwhile, Wal-Mart Stores remains Oklahoma City's dominant player, with 20 supercenters and 10 Neighborhood Markets and a market share of 40.4%, up from 40% a year ago.

But the city's independents more than hold their own.

Homeland, the largest independent operator in the state, has 25 stores in Oklahoma City, with a market share of 13.9% — the same as a year earlier.

According to an Oklahoma City-based online publication, “The selection is not nearly as great [at Homeland] as … other stores, and the prices are higher overall.” However, it said Homeland offers “a pleasant shopping experience” and is “rarely crowded.”

Two other local independents have seen their volumes increase and their reputations rise: Crest Foods, whose seven stores have a market share of 11.6%, up from 11.5% a year ago with the addition of one new store; and Buy for Less, a 12-store operator that opened one new store last year and saw its share rise to 5.7% from 5.4% a year ago.

Part of the reason for those jumps may have been a pricing survey by the Daily Oklahoman newspaper, which indicated both chains had lower prices than Wal-Mart, industry sources pointed out.

“They both compete very effectively against Wal-Mart, with a very strong value proposition, very competitive prices, strong perishables and good customer service,” one industry observer told SN.

Crest operates some extremely large stores of 90,000-plus square feet. According to the online publication, “There really isn't a weak section of the store at Crest, [and] this is probably your best bet as far as sheer quantity of brands.”

Virtually all of Oklahoma City's independents, including Homeland, are supplied by Associated Wholesale Grocers, Kansas City, Kan.

Among other players in the Oklahoma City market, Sam's Club, with five stores, has a 5.8% share, down slightly from 5.9% last year; 7-Eleven, with 106 stores, has a 4.1% share, up from 4%; and Circle K with 54 stores, has a 3.9 share, the same as it had last year.

Six Aldi stores in saw their market share remain flat at 1.2%, the same as a year ago.