New Formats Edging Out Traditional Supermarket.

The popularity of the conventional grocery store, a mainstay of food retailing for half a century is on the wane. In 1988, traditional grocery formats accounted for nearly 90% of grocery and consumables sales. By 2003, these retailers, which can be found under a variety of banners, accounted for only a 56% share. By 2008, that share is expected to drop to just 49% according to data released at The Outlook for Food Retailing Through 2008, a webinar featuring Willard Bishop Consulting (WBC), and The Food Institute, an Elmwood Park, NJ-based food industry information association.

“Traditional grocery store formats will account for less than 50% of the grocery and consumables market by 2008, losing share to non-traditional formats,” Bill Bishop, president of WBC told webinar attendees. At the presentation, Mr. Bishop discussed the popularity of alternative formats, from dollar stores to supercenters, and offered predictions about their respective futures.

The future success of supermarkets hinges on whether or not they want to re-invent the center of the store. In a survey of participants in the webinar, an astounding 94% said it was very, or somewhat important for these retailers to do so in order to succeed in the future. However, when asked “What do you think will stop the growth of supercenters?” 44% replied “Nothing.”

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For more information at http://www.foodinstitute.com