Chicago retail scene remains strong
The Chicago retail scene remains strong, despite a few tweaks sparked by the COVID-19 pandemic, said Craig Carlson, president/CEO of Chicago-based Carlson Produce Consulting LLC.
Thanks to lockdowns that kept shoppers largely confined to their homes and full or partial shutdowns of restaurants that had consumers preparing their food at home, supermarkets saw significant upticks in online ordering and curbside pickups during the pandemic, he said.
“Those two things have gone mainstream, and they’re here to stay,” Carlson said.
Retail sales stayed consistent for Strube Celery and Vegetable Co. on the Chicago International Produce market as many customers implemented or expanded online ordering and curbside pickup programs to boost sales, said TJ Fleming, vice president.
“If it helps them, it helps us,” he said.
For some stores, online ordering accounts for up to 20% of the business, Carlson said.
Consumers are starting to get over their reluctance to have someone else pick out their fruit and vegetables when they order online, he said.
But stores give up the advantage of impulse purchases prompted by large in-store displays or sampling events when consumers shop online, he added.
For the new Amazon Fresh stores, a handful of which are in the Chicago area, online sales account for about 50% of the business, Carlson estimated.
The stores offer a “cashierless experience,” with in-store shoppers being charged for their purchases automatically after scanning an app when they enter the facility.
Carlson estimated that there are three to five Amazon Fresh stores in the Chicago area, and that number is growing.
“They’re making their presence felt here in Chicago,” he said.
All the Chicago area chains except Trader Joe’s also offer self-checkout options.
Jewel/Osco continues to dominate the retail sector in the Chicago area with a 38.74% market share, according to the Shelby Report.
Other chains in the top five are Meijer (9.47%), Wal-Mart (8.74%), Mariano’s (7.53%) and Whole Foods Market (7.52%).
Chicago-area supermarkets experienced a boost in business during the pandemic, and most retailers now are doing more business than they were in 2019, Carlson said.
“People are still cooking more at home,” he said.
Some consumers had to learn how to cook, he added.
But like the foodservice industry, retailers still are faced with labor challenges, Carlson said.
“Everybody is struggling,” he said. “They can’t get enough help.”
Looking at some of the supermarket chains that serve the Chicago area, Aldi Inc., based in Batavia, Ill., about 40 miles from Chicago, continues to expand and renovate stores, Carlson said.
“They have a nice presence in this market,” he said.
The Shelby Report says that Aldi has 165 stores in the area and captures nearly 2% of the market.
“Their consumers love them,” Carlson said.
Aldi locations have a limited selection compared with other major chains, but they offer a good value, he said.
A number of strong independent chains also serve the area, he said, such as Pete’s Fresh market, with 15 stores and a .76% market share, and Tony’s Finer Foods, with 12 stores and .66% of the market.
“They d\o a nice business,” Carlson said.
The independents have a good niche in the region, and shoppers like the convenience of the local markets.
Jewel/Osco, based in Itasca, Ill., has been in the Chicago area the longest of all the major chains, Carlson said.
“They offer a great program.”
Meijer Inc. has 29 stores in the area.
“They’ve got a nice presence in Chicago and all across the Midwest,” he said.
The chain is a full-line grocery store and is a “very good super center model.”
Wal-Mart has done some remodeling but is not building many new stores, focusing instead on expanding its online delivery and pickup services, Carlson said.
