Supermarkets in the US

PROSPECTS

Supermarkets’ share of grocery retailers sales declines as competition intensifies

In 2019, supermarkets retained its title as the leading retail channel of any kind in the US in terms of total sales, posting a higher retail sales total in the country than even e-commerce over the course of the year. Despite the immense scale of the supermarkets channel, however, its value share of total grocery retailers sales in the US continued to decline in 2019, just as it has in every year since 2014.

Supermarket operators begin to embrace micro-fulfilment

Amazon.com Inc’s 2017 acquisition of premium grocer Whole Foods was a watershed moment in the history of US supermarkets.

Supermarkets turn to on-site restaurants to boost foot traffic

With US consumers reporting that they feel increasingly strapped for time, and with the economic fortunes of the US continuing to recover from the economic downturn of 2008-2009, it is little wonder that more individuals across the country are opting to spend their money on prepared meals instead of cooking meals at home. This is reflected in growing sales of prepared foods at supermarkets, a development which has led many banners across the channel to expand their assortments of these types of items in the deli sections of their stores.

COMPETITIVE LANDSCAPE

Kroger revisits “Restock”

In 2017, Kroger Co – the leading player in the US supermarkets channel – faced declining same-store sales and mounting competition from Walmart Inc, Aldi Inc and other value-focused grocery retailers. In October of that year, responding to the pressure, the company announced a new plan designed to boost the its profitability through a combination of bold tech-focused initiatives and store renovations.

Albertsons believes that micro-fulfilment is the future

Virtually all of the major supermarket operators in the US have made substantial strides in developing their omnichannel retailing capabilities over the last two years, and Albertsons Companies Inc – the second largest player in the channel by sales – is no exception. The company has entered into partnerships with both Instacart and Shipt to provide same-day grocery delivery from its stores; it has also expanded its curbside pick-up service, Drive Up & Go, to approximately 550 stores, with plans to add the service to a further 1,400 outlets by the end of 2021.

Amazon poised to launch two new supermarket banners in the US in 2020

In 2017, Amazon.com Inc – the retailer that has done more than any other to fuel the current e-commerce boom in the US – sent shockwaves through the nation’s grocery landscape when it announced that it had acquired premium grocer Whole Foods.

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