Floundering Supermarkets Provide Industry Opportunities

Floundering Supermarkets Provide Industry Opportunities

NEW YORKSupermarkets shrinking share in the food retailingmarket presents opportunities for alternative food retail channels, according toThe Future of Food Retailing, a new report from market research publisherPackaged Facts, a division of MarketResearch.com. Major demographic, lifestyleand technological changes are creating a fertile environment for there-invention of the food retail milieu, according to the report, which analyzestrends in four retail channels including traditional grocery, value,convenience, and alternative.

According to Packaged Facts, supermarkets are losing their share of themarket to warehouse clubs, natural food chains, Cstores and restaurants;further, food-focused retailers share of groceries and consumables hasplunged from 73 percent in 1998 to an estimated 51 percent in 2005, whilegeneral merchandise-focused retailers share of the grocery business has grownfrom 16 percent in 1998 to 33 percent today.

Supermarkets are being beaten at their own game by other food retailoutlets that are doing a better job of continuously innovating, technologicallyadvancing, and cautiously upscaling food choices-steps that are better servicingtodays value-driven, gourmet-seeking consumers. said Don Montuori,publisher of Packaged Facts (www.packagedfacts.com). Many supermarkets willeither suffer a slow death by stagnation, or self-revolutionize to meettodays consumers expectations.