Conventional grocers are losing market share fast

Conventional supermarkets are losing market share fast to new fresh formats, according to a report by Willard Bishop.

Sales at traditional grocery formats increased 1 percent during 2013, according to the Barrington, Illinois-based consulting group's annual survey. But sales at conventional formats within this group grew just 0.4 percent and market share fell 39.1 percent compared to 39.8 percent the previous year, reported Supermarket News.

Market share for this group is expected to fall even further to 36.2 percent by 2018, according to the report "The Future of Food Retailing."

In contrast, fresh format sales grew 10.4 percent, the biggest gain of any segment. Sales at limited-assortment grocers rose 4.1 percent; small grocery stores grew 2.4 percent; and convenience store sales rose 2.4 percent.

Convenience stores are growing market share, accounting for 15 percent of sales comported to 14.9 percent in 2012.

Online sales of food and consumables have been slow to catch on with U.S. shoppers, but that seems to be changing. Online sales for these products climbed 13.7 percent to $21.1 billion. Willard Bishop is forecasting an annual growth rate of 9.5 percent in the category, according to Media Post.

For more:
-See this Media Post story
-See this Supermarket News story

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