Wal-Mart’s worries not unique - The Packer

Wal-Mart’s worries not unique

07/08/2014 10:17:00 AM
Tom Karst

Limited assortment stores (headlined by Aldi) grew at a 4.1% pace to $31.1 billion. The report observed that Aldi plants to open 650 new stores over the next five years.

Likewise, the Dollar format stores showed food sales gains of nearly 9% in 2013, with food and consumable sales at better than $28 billion.

Store counts of dollar food stores grew 5.2% to more than 27,000 stores last year, and Family Dollar and Dollar General are both poised to expand further in the years ahead.

 Led by the efforts of Amazon, e-commerce food and consumable sales grew by 13.7% in 2013, the Willard Bishop report said, with sales in 2013 at $18.2 billion. Traditional supermarkets also are ramping up for more online sales, so online food sales will continue to grow.

On the other side of the ledger, the Willard Bishop report said traditional supermarkets had a modest sales increase of 0.4% to $444.2 billion.

Supercenter sales grew 4% to reach $200 billion in sales, but Wal-Mart, Target and Kmart all had same store sales declines.

Even with the same store struggles of Wal-Mart, Willard Bishop predicts that the market share for the supercenter format will grow from 17.6% in 2013 to 19.4% in 2018.

Fresh format sales will grow from 1.2% to 2.1%, and limited assortment store sales will climb from 2.7% to 3.4%.

While Wal-Mart has reason to be worried, traditional supermarkets should be the most alarmed; Willard Bishop predicts a market share decline from 39.1% in 2013 to 36.2% in 2018.


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Cole    
Oklahoma City  |  July, 09, 2014 at 01:24 PM

Until Walmart deals with the slow check out times they will not grow.

Tom K    
KC  |  July, 10, 2014 at 05:37 PM

Cole, Interesting point. Often when I go in Wal Mart, many of the lanes are closed, without cashiers. Tom K

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