Food Sales At Supercenters & Clubs



Food Sales At Supercenters & Clubs
Eat Into Supermarket Sales

Although foodservice and drinking places increased their share of total U.S. retail trade of $3.78 trillion by two percentage points last year to 9.5%, the share of food and beverage stores declined again, to 13.5%.


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Overall, that put food-based retailing’s share of total retail trade at 23.0% versus 23.1% a year earlier, according to Food Institute analysis of just released Bureau of Census data.

Restaurants and alternative retail formats continue to chip away at the grocery store’s share of the retail trade pie. Indeed, back in 1992, retail food and beverage stores held an 18% share of U.S. retail trade – one-third more than they do currently. That is not to say, however, that total retail food sales are down.

FOOD INSTITUTE EXCLUSIVE Click Here For Detailed Chart Showing Food-Based Retailing

Warehouse clubs and supercenters accounted for 5.8% of retail trade in 2003 compared to only about 2% a decade ago and both sell large amounts of food products. It is estimated (by J.M. Degen & Co., Inc.) that about 41% of supercenter sales come from food, while 61% of club sales are derived from food sales. Based on 2003 data, that would mean these outlets combined sold around $95 billion in food products in 2003, or 2.5% of total U.S. retail trade. Although not categorized as food-based retailing, adding that 2.5% to our food-based retail trade share of 23%, would bring it to 25.5% — even more than motor vehicle and part sales. Each month, The Food Institute tracks retail and foodservice sales as well as those of warehouses clubs and supercenters. If you are a retailer, you can use this data to see how you stack up each month against the overall industry. Or, if you are on the selling side, see how your customers are doing. Click here for a special membership offer.

 

Last modified February 18, 2004