Grocery Retail Industry Description

Companies that retail a general line (wide range) of food products such as canned and frozen foods; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry.

Summary

From cabbages to cotton balls, supermarkets have to move tremendous amounts of goods to reap onion skin-thin net profit margins -- traditionally barely 3% of sales. One reason margins are so slim is that a large proportion of a supermarket's stock consists of perishable goods. Other reasons include fierce price competition from the originator of “everyday low prices” Wal-Mart Stores and other low-price, non-traditional competitors (including warehouse clubs and dollar stores), mature markets, steep start-up costs, and pesky antitrust limitations. Also, recent steep price inflation for food and other household goods, which grocers are reluctant to pass along to consumers, is putting additional pressure on margins, not to mention shoppers. The combination is a recipe that actually stunts growth.

Grocery Retail Industry Resources

• Business.com: Food and Beverage
  
• Chain Drug Review
  
• Chain Store Age
  
• Drug Store News
  
• Food Processing Magazine
  
• Just-food.com
  
• Organicfood.co.uk
  
• Prepared Foods
  
• Progressive Grocer
  
• Supermarket News
  
• The Food Institute Online
  
• Trade Show News Network
  

Grocery Retail Industry Terminology

• Food Marketing Institute: Glossary of Supermarket Terms