1. Food Wholesaling and Retailing
Part B
AGEC 364

2. “Times They Are A Changing”
Compare the Ma and Pa corner grocery with a supermarket!
K-Mart, Wal-Mart and Sam’s have entered the food business

3. “Times They Are A Changing”
K-Mart, WalMart and Sam’s have entered the food business
Food courts in malls
Pizza delivery
What do they all have in common? They find a consumer need and fill it.

4. Food Retailing Largest retail sector in the U.S.
Food retailers must be adept at matching supply with demand; most responsive to changes in consumer demand
Growing share of food dollar going to food service rather than food stores

5. Food Retailing
Food retailing is the largest retail sector in the U.S. economy with about one-fourth of total U.S. retail sales.
Food retailing firms employ more than 80 percent of all workers in the food marketing system.

6. Food Retailing
Food retailers must be adept at matching supply with demand; this sector is considered the most responsive to changes in consumer demand.
A growing share of the U.S. food dollar is going to food service rather than food stores.

7. Food Retailing
Although the terms chainstores and supermarkets are used synonymously today, they developed independently for different reasons. A grocery store is classified as a supermarket if it annual sales exceed $2 million.

8. Chainstores
A chainstore operation is a group of 11 or more related grocery stores. Chainstores may or may not be supermarkets and supermarkets may or may not be part of a chainstore operation.

9. Chainstores
Originally a chainstore organization collected several retail outlets under one management in order to secure the price advantage of large-volume buying from wholesalers and processors.

10. Chainstores
These chainstores aimed for low-cost, large-volume operations and competed with price instead of services. Chainstore market share of grocery store sales rose from 50% in 1956 to 78% in 1996.

11. Chainstores
The corporate chainstores (A&P, Kroger, American Stores, Winn-Dixie, Safeway, etc. are the national and regional grocery wholesaling operations that are centrally managed.