Mass. grocers scramble to keep up with consumers

Similar documents
More the More Merrier A. Kumar.

B&M European Value Retail SA Interim Results Presentation 26 weeks to 23 rd September 2017

Some retailers starting the holiday shopping season on Thanksgiving Day

Update - Home Improvement

O KEY GROUP ANNOUNCES OPERATING RESULTS FOR Q2 AND H1 2017

Why Are UK Grocers Still Expanding in a Shrinking Market?

O KEY GROUP ANNOUNCES OPERATING RESULTS FOR Q3 AND 9M 2017

Arizona Tile Celebrates 40 Years in Business

OKLAHOMA DEPARTMENT OF AGRICULTURE, FOOD AND FORESTRY 2800 N. Lincoln Boulevard, Oklahoma City, OK PRESS RELEASE: FOR IMMEDIATE RELEASE

Paper Reference. Paper Reference(s) 4340/03 London Examinations IGCSE. Monday 12 November 2007 Afternoon Time: 1 hour, plus reading time of 10 minutes

Overview of the UK Home Improvement Market. 18 th October 2017

Retail Contractors Expect Business to Remain Slow in 2010.

LENTA SALES AND OPERATING HIGHLIGHTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2017

How Massmart grew Builders to market-leading behemoth

PLASTIC BAG REDUCTION BYLAW

RETAIL. Kolb Properties. MEDC Conference June 11,2014. Donna Maxwell, Broker/Salesperson Kolb Properties

O KEY GROUP ANNOUNCES OPERATING RESULTS FOR Q4 AND 12M 2017

Bunnings Earnings Results

LOWE S SECURITY ANALYSIS TERRY ASANTE

Term-End Examination December, 2012 MFM-033 : RETAILING AND MARKETING STRATEGIES

SPECS store planning, equipment, construction and facilities services

FOR IMMEDIATE RELEASE October 25, CONTACT: Mayor s Press Office

Commercial Heating & Cooling. HARRY BIZIOS President & Chief Operating Officer

Company Presentation. 1H 2014 Results and Performance August 15, 2014

Kmart $3,000, % CAP 2200 E. Isaacs Avenue, Walla Walla, WA

FOR LEASE Gideon Dr

6. Results for the Wholesale and Retail Trade Sectors

Welcome to our exhibition

SPEAKER AND AMPLIFIER CONSIDERATIONS FOR MOTION PICTURE THEATRES

Policylink Equitable Development Toolkit Urban Agriculture and Community Gardens 1

These American Standard showrooms serve as wholesalers to area showrooms

NACS (The National Association of Convenience Stores) NACS was founded August 14, 1961, as the National Association of Convenience Stores.

How increased prices in bananas show people will move store for produce January Kantar Worldpanel

HARVESTING RAINWATER IS SPECIALIZED, LUCRATIVE

INSERT EXPRESS ENHANCEMENTS

Ben Gordon Chief Executive

O`KEY GROUP ANNOUNCES OPERATING RESULTS FOR Q2 and 1H 2018

Chelsea Creek Municipal Harbor Plan

Ben Gordon Chief Executive

Moving Beyond Compliance: Campaigns & Corporate Strategies

Market Dynamics Cut Flowers Europe October 2015

Marks and spencer aims and objectives

U.S. FIRE DEPARTMENT PROFILE THROUGH 2009

2010 FOURTH QUARTER AND FULL YEAR RETAIL SALES RESULTS

MASCO CORP /DE/ FORM 8-K. (Current report filing) Filed 09/13/99 for the Period Ending 08/31/99

28 RESCUE July/August

SEB Seminar. CFO Jukka Erlund Copenhagen

Weekly Store Openings and Closures Tracker #14: True Religion Bankruptcy & Walgreens Adds Stores. July 7, 2017

King of Prussia Mall BY MARY LOU JAY

2017 Commercial Real Estate Market Report

Tractor Supply Company. Lehman Brothers Ninth Annual Retail Seminar May 2, 2006

A New Aldi Foodstore Hesketh Bank Tarleton Banks A59 The proposed site A565 Croston Former Bayleaf Restaurant Holmes A59

A $335M Project to Save NYC From Climate Catastrophe Margaret Rhodes Design, June 9, 2014, Wired

East Linden Estates Newsletter

SELLING ENERGY EFFICIENT HOME IMPROVEMENT

Revenue increased by 6.37% from 1, billion RUR in 2016 to 1, billion RUR in 2017.

METRO GROUP continues operational improvement trend in 2014/15

Pre-seen case study for Strategic level examinations Papers E3, P3 and F3. For examinations in May 2014 and September 2014

The Day Cleaning Question

MARKET UPDATE Retail

Bucking the trend. Kohl's: Keep it simple

Carrefour Q sales up 1.5% to 22.5bn Resilience in food, continued weakness in non food spending

2018 First Quarter Retail Sales Results

Much of the research and trade press coverage. Potential of LEDs Expected to Extend Well Beyond Production

2017 Key Buyers. as of (GFR) GLOBAL FLORAL RESOURCE, INC. PORTFOLIO LEAD FLORAL DIRECTOR BUSINESS DEVELOPMENT MANAGER

A NEW ALDI FOOD STORE FOR KINGSWINFORD

Food Marketing Policy Center

Solid operations and excellent fundamentals continue to entice investors to buy retail

Attention ASX Company Announcements Platform. Lodgement of Open Briefing.

Retail Ireland Monitor

Advisory Brief to Prince George City Council On the Matter of Bylaw 8727, 2013, Fire Protection and Emergency Response Bylaw

Steinhoff: is bigger better?

Weekly Store Openings and Closures Tracker #10: Sears Closing More Stores. June 9, 2017

Deutsche Tour Presentation. 27 January 2012

The Lodge at Saint Edward State Park, One of Many Projects Transforming the City of Kenmore

A VISION FOR BLAIRGOWRIE

Summary of the situation. A pollution policy game. You are also a firm. You are also a firm 2/29/2016. Practice Round Manager

Market Dynamics Ornamental Plants Europe June 2016

Needles found at Recology recycling centers in Sonoma County at alarming rates

Spotlight on Upholstery

What s the difference?

For personal use only

Workplace. ActivityGuide

B&M European Value Retail SA Preliminary Results Presentation 53 weeks to 31st March 2018

BUSINESS. Earning. the

2015 A Big Year for Calumet West

Markets, Metrics, and Madness: Counting Beans or Changing Markets

SECOND QUARTER 2018 CHARLOTTE-MECKLENBURG GROWTH REPORT

LENTA SALES AND OPERATING HIGHLIGHTS FOR THE FIRST QUARTER ENDED 31 MARCH 2018

Lowe's Companies Inc (LOW) - Financial and Strategic SWOT Analysis Review

AN EXECUTIVE WHITE PAPER ON:

CUT COSTS, WIN CUSTOMERS WITH ENERGY- EFFICIENT APPLIANCES

Superdrug Facial Cleansing Wipes. Sector: Personal Products. Client: Superdrug. Agency: B&B studio. Date: 26th June 2015.

MARVIN ELLISON PRESIDENT & CHIEF EXECUTIVE OFFICER

Franchise Expo South Press Kit

CONSUMER BRANDS GROUP

A pollution policy game. Summary of the situation. You are also a firm 2/29/2016

WELCOME. Welcome to this public exhibition about the future of the Aylesham Shopping Centre.

Burned Dozer 230. I m just glad we get to do this the RLS process so others can learn something from it. Dozer Operator

Interim results for the six months to August 2010

Transcription:

Page 1 of 6 Business Mass. grocers scramble to keep up with consumers By Jay Fitzgerald GLOBE CORRESPONDENT NOVEMBER 13, 2012 SUZANNE KREITER/GLOBE STAFF Shaw s, the state s second-largest supermarket operator with 84 stores, recently laid off workers. From the recent layoff of 700 workers at Shaw s to the impending demise of the Johnnie s Foodmaster chain to more Whole Foods and Wegmans stores, the Massachusetts supermarket industry is undergoing a serious makeover as it faces stagnant sales and new types of competition. Part of it is the tenuous economy consumers are more frugal than ever, looking for sale items and resisting snack aisle binges.

Page 2 of 6 People have generally cut back so much, and they continue to cut back, said Brian Todd, chief executive of the New Jersey-based Food Institute, a trade group that represents the $520 billion supermarket industry. But something else is happening, too: They re relying less on supermarkets for groceries. CONTINUE READING BELOW Just more than a decade ago, supermarkets accounted for about 66 percent of all groceries bought in the United State, according to the Massachusetts Food Association. But by the start of 2012, that was down to 51 percent. In Massachusetts, the number of supermarkets has fallen by about 10 percent over the past decade, to under 1,000, according to industry figures. Related PHOTOS Photos: Grocery food fight Today, traditional supermarkets compete with massive retail discounters such as Target and Walmart Stores Inc., Trader Joe s, which uses offbeat marketing to promote its innovative, hard-to-find, great-tasting foods, and drugstores like CVS and Rite Aid that sell milk, cereal, and other staples. In addition, there are a growing number of limited assortment food discounters in Massachusetts, such as Save-A-Lot, Aldi, and Price Rite outlets, said Edgar Dworsky, founder of ConsumerWorld.org. And the promise of bulk bargains like toilet paper rolls by the dozens still attract consumers to cavernous Costco and BJ s warehouse-style stores across the state. Dworsky said the expanding options make it tougher for high-overhead supermarkets that depend on heavy traffic and massive volume. Profit margins on many products are as low as 1 to 2 percent, while food costs through August rose at an annualized rate of about 3 percent, according to the Food Institute.

Page 3 of 6 Consumers today have more choices and more value choices, Dworsky said. Going forward, I think traditional supermarkets are going to get nudged even more. Steven Sylven, a spokesman for Shaw s Supermarkets, acknowledged that it has become more challenging to do business in Massachusetts. Over the past three years, an estimated 110 nontraditional food stores have entered the Massachusetts market, he said. We re very much in a tough, competitive environment here, Sylven said. Shaw s, based in West Bridgewater and owned by the financially struggling Supervalu Inc. of Minnesota, is the state s second-largest supermarket operator, with 84 stores here. But not all the competitive pressure is being applied by price-driven merchants. Some shoppers, tired of the sameness of midrange chains, are willing to pay for more amenities and speciality foods. Whole Foods Market Inc., which has 21 stores in Massachusetts, is building three more over the next year, including one in Hyannis the first Whole Foods on Cape Cod. The Austin, Texas-based chain has also agreed to take over leases at six of the 10 Johnnie Foodmaster s in the Boston area. The stores which are relatively small, averaging 31,000 square feet will be remodeled and reopened as Whole Foods locations next fall.

Page 4 of 6 Dworsky said it may be difficult to quickly find owners for the remaining three Johnnie s, in Lynn, Whitman, and on Alewife Brook Parkway in Somerville. I think it s indicative of the market that there s no scramble by others to fill these remaining spots, he said. John DeJesus, owner of the Johnnie s Foodmaster chain, could not be reached for comment. Stop & Shop Supermarket Co., the largest grocer in Massachusetts with 131 stores, is taking over the lease of another Johnnie s Foodmaster store in Medford. The Quincy-based chain also plans to open a new supermarket in Wayland Friday. But the company is also reassessing some locations Stop & Shop last week closed one of its three stores in Revere, part of a previously announced consolidation move by the company. Suzi Robinson, a spokeswoman for Stop & Shop, said there s no doubt the industry is facing difficult times, most immediately because of the economy. KAYANA SZYMCZAK FOR THE BOSTON GLOBE/FILE 2011 Whole Foods took over leases of some Johnnie s Foodmaster locations and will remodel and reopen them. We do recognize it s not exactly easy for shoppers these days, Robinson said. In contrast to the demise of Johnnie s Foodmaster, Market Basket the state s third-largest supermarket operator with 40 stores has been thriving in recent years. Taking a low-priced but high-volume approach toward sales, Market Basket has opened three new stores this year in Massachusetts and opened a new building at an existing site in Haverhill, said David McLean, operations manager at Demoulas Supermarkets Inc., the privately held parent company of Market Basket.

Page 5 of 6 They re a company who knows the market and executes quite well, Kevin Griffin, publisher of the Griffin Report of Food Marketing in Duxbury, said of Market Basket. Wegmans, a family-run chain based in New York, also is making inroads in Massachusetts. The company, known for its vast selection and fastidious attention to detail, operates a massive store in Northborough, has two more locations on the way in Burlington and Chestnut Hill and is scouting for other locations. While the Wegmans footprint is small here, it commands a zealous following. The Northborough opening in October of last year attracted a record-breaking 25,000 customers on a single day. Officials at other supermarket chains said they are responding as best they can to shifts in consumer preferences with lower prices, higher quality food, and better service. Clearly, the increased fragmentation of the market is one of the biggest challenges facing the industry, said Paul McGillivray, vice president of sales at Roche Bros. Supermarkets Inc., a family-owned chain with 18 Roche Bros. and Sudbury Farm stores in Massachusetts. Our business has been holding up good, McGillivray said, and the Wellesleybased grocer is always looking for opportunities to expand. For now, however, it s concentrating on keeping existing stores thriving. According to Griffin, that s a formidable challenge for any company that sells groceries. In coming years, he said, there will be no let up in the fierce battle for market share among food retailers. If anything, it s going to get even more competitive, Griffin said. Try BostonGlobe.com today and get two weeks FREE. Jay Fitzgerald can be reached at jayfitzmedia@gmail.com. 2012 THE NEW YORK TIMES COMPANY