Food Industry Changes May 1st, 2010
General merchandise retailers to dominate food industry by 2013
The balance of food and consumables sales will be taken over by general merchandise-retailers by 2013, according to food products executives.
Retailers with food and consumables sales that account for less than two-thirds of their business will dominate the food products industry within the next seven years, according to predictions made in The Food Institute’s “The Future of Food Retailing”.
“If the current trend continues, food-focused retailers, e.g., supermarkets and limited-assortment stores, will drop from the 52% share they enjoyed in 2004 to a 40.2% share in 2013, according to our estimates.” reported Jim Hertel, senior vice president of Willard Bishop, which presented the data in association with The Food Institute.
“At the same time, general merchandise-focused retailers, e.g., supercenters, mass, drug, club and dollar stores, will increase their share from 31.9% in 2004 to 43.5%, surpassing food-focused retailers.” Hertel said. “This is a dramatic shift from the days of supermarket dominance when more traditional food stores sold about 90% of all food and consumables in the U.S (1988 figures).” said Bill Bishop, president of Willard Bishop.
“Manufacturers and suppliers of food and consumables need to understand the implications of this trend on their business. It is critical for them to build trade plans and strategies to address their shifting retail customer base.” added Bishop.Other food products’ trends include:
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