Discussions of online sales migration, omnichannel strategies, and small format stores dominated most of the headlines pertaining to US grocery retailers over the last years of the review period. However, in 2018, hypermarkets recorded another year of steady current value growth, with the channel continuing to gain share within the modern grocery retail space.
Bricks-and-mortar hypermarkets in 2018 achieved strong growth because operators continued to devote significant resources towards diving into the omnichannel space, a shift which has had the effect of driving a higher number of sales towards internet retailing.
In 2018, growth in the number of hypermarkets in the US slowed for the second consecutive year, even as year-on-year value growth remained stable. One of the reasons for this is because most areas of the US that can support a hypermarket location are already served by one (or several).
Leading global retailer Walmart Inc continued to dominate hypermarkets in the US in 2018. As internet retailing continues to gain a larger share of US consumers’ spending, however, Walmart has had to adjust to a competitive environment in which Amazon.
Leading mass merchandiser Target Corp also maintained a low presence in hypermarkets in 2018, lagging behind Walmart and Amazon.com Inc in terms of the quality and reach of its home delivery service.
In April 2018, the sole remaining Kmart Super Centers outlet in the US closed its doors for the final time. With this closure, Sears Holdings Corp formally exited hypermarkets in the US.
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