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Remember when Wal-Mart (WMT -0.2%) was supposed to crush regional grocery store chains into...

Remember when Wal-Mart (WMT -0.2%) was supposed to crush regional grocery store chains into submission? Though the Bentonville giant accounts for a formidable 30% of all grocery sales in the U.S., regional brands such as Hy-Vee, Piggly Wiggly, and Save-A-Lot (SVU) to name a few have survived primarily on brand loyalty. The trend adds logic to the decision by Kroger (KR) to keep its chain distinct from Harris Teeter (HTSI).
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Comments (7)
  • tampabay
    , contributor
    Comments (301) | Send Message
     
    Walmart is a Mass Merchant, there are lots of grocery Experts in the business, Kroger, Piggy Wiggly, Publix, Whole Foods ect....I don't think Walmart thought they were going to "Crush" these guys...I think 30% of ANY business in the U.S. is quite an accomplishment, DON'T YOU?
    12 Jul 2013, 02:01 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3676) | Send Message
     
    30% in under 2 decades as well... It will be interesting to see if $TGT makes any waves long-term as well...
    12 Jul 2013, 02:13 PM Reply Like
  • DAG1996
    , contributor
    Comments (3335) | Send Message
     
    Exactly. A large part of thee reason I bought KR nearly 60% ago is that it was so obvious that the prevailing sentiment (that WMT would, or needed to, "crush" Kroger and/or other traditional grocers) was absolutely ridiculous. As I said back then to each person who made that claim: "Does your family buy all of your groceries at Walmart?" ... "Why not?" ... "So, do you really think you're family is as unique as your thesis implies?"

     

    By the way, nice to see another Tampa Bay person here. In case you didn't know already and might be interested, we have an upcoming top-performing company headquartered right over by Tampa International Airport ... HCI Group (HCI) ... up 370% in the past two years.
    12 Jul 2013, 02:54 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3676) | Send Message
     
    Safeway (SWY) has done the same thing with many smaller regional brands such as Carrs in Alaska. This is nothing new...
    12 Jul 2013, 02:01 PM Reply Like
  • SivBum
    , contributor
    Comments (1836) | Send Message
     
    Different demographics shopping in big box stores like Wal-Mart to supermarket chains to 7-elevens. You don't just go shop at Wal-Mart for a single roll of toilet paper or a couple of bananas for today's lunch.
    12 Jul 2013, 02:48 PM Reply Like
  • mwn560
    , contributor
    Comments (25) | Send Message
     
    What I have noticed is that for example Rosaritta refried beans are cheaper at wal-mart by about 5 cents, however a store brand or (old el paso) will be even less expensive than wal-marts. This is true throughout everything they sell. If you take the wal-mart challenge their Rosaritta refried beans will beat everyone, however I don't care who made the refried beans, I'm going with the cheaper store brand at Krogers.
    12 Jul 2013, 04:53 PM Reply Like
  • stabletker
    , contributor
    Comments (58) | Send Message
     
    I bought an LG smart phone at KR for $50 and they give me 100' and 50mbs a month for$10,which is usually free for shopping there! Its a great deal for a lite smart phone user like me. Owning the stock has also been a good deal,don't forget it also yields more than a CD.
    12 Jul 2013, 07:46 PM Reply Like
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