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A strengthening trend of consumers to divide up their food shopping amongst various stores is...

A strengthening trend of consumers to divide up their food shopping amongst various stores is hurting grocery stores, according to research from Kantar Retail. While specialty players Whole Foods Market (WFM +0.8%) and Trader Joe's grab market share in many high-margin categories, dollar store chains and Wal-Mare continue to broaden their reach. Feeling the pressure: SVU, KR, SWY.
Comments (10)
  • I had stopped at a Target while at the mall for some beer and was surprised at their food selection and that there were a few people with full carts of groceries.. at Target.
    15 Oct 2012, 12:06 PM Reply Like
  • Gave up Target (and the like) and Bud Light (and the like) for Whole Foods and craft ale a long time ago. Same for their stocks.
    15 Oct 2012, 12:14 PM Reply Like
  • Well, that sounds more like a snob-comment than a comment on the business model of Target entering (and succeeding with) fresh produce, meats and CPG.
    15 Oct 2012, 01:53 PM Reply Like
  • One store no longer owns "one consumer." Specialities exist that cater to the needs of busy shoppers and families. Consumers split their weekly replenishment between a variety of stores. That split increases tremendously when factoring daily store trips to pick up items for a special dinner or recipe. It is will be important for CPG and Retailers to partner to understand the store dynamics and put creative programs together that keep consumers coming back.
    15 Oct 2012, 01:50 PM Reply Like
  • Good comment.
    15 Oct 2012, 01:54 PM Reply Like
  • Yes I think you can even through farmer's markets, online stores and local farms into the mix.
    15 Oct 2012, 03:00 PM Reply Like
  • Target may have a variety of foods BUT their prices are RIDICULOUS compared to SVU. . .
    15 Oct 2012, 02:56 PM Reply Like
  • Ridiculously LOW, compared to traditional retailers Publix and Winn-Dixie in my area. The only thing that keeps me from regularly buying groceries at Target, aside from the box of Organic granola bars for $2.44 (vs. $3.99 at $WFM), is the "hassle factor" of going to Target. If I'm not there already -- buying toys or certain kids clothing -- I don't want to deal with the "masses" who are. Checkout is also always terrible, poorly staffed relative to the magnitude of the shoppers, IMHO.
    15 Oct 2012, 04:39 PM Reply Like
  • What is "Wal-Mare" anyway? A derogatory reference to Walmart?
    15 Oct 2012, 07:21 PM Reply Like
  • Does anyone have opinions , views about SWY loyalty program and its value ?

     

    Personally I seldom go to SWY - they are definitely not "discount" stores. More expensive then some local stores (Chinese,India etc.), less TRUST the on WholeFoods to pay premium price for "organic products" - More expensive then Walmart , even though their loyalty program (painful) claims so...

     

    So - what is the general customer response to these "loyalty programs".

     

    Couponing of course has it's value (don't short term or long term) e.g. JCP. Stupid CEO does not have any clue how to steer the boat except start with routine management template" as in
    - start with lay offs.
    - Hire couple of cronies
    - give some lame duck nonsense presentations and blame it on "what's not good like IT systems for e.g."
    - promise some more, buy some more time
    -realize things are not working and go back to old world gimmicks e.g. couponing. What next?

     

    - Next lay off more people, close stores, make JCP lean and promise more.
    Eventually step down or get fired.
    19 Oct 2012, 04:47 PM Reply Like
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