Food and Nutrition
Supermarkets -- Are They On The Endangered Species List?
By
Mar 30, 2008 - 6:16:31 PM

(HealthNewsDigest.com) - Faced with stiff competition, small profit margins and numerous food scandals from bacteria laden spinach, to massive meat recalls, to health violations for unsafe practices the industry is reeling. The landscape of the American food shopping experience is changing and supermarkets chains are not changing fast enough to keep pace.

From the 1930’s through the 1980’s the American supermarket was the ubiquitous final link in our food supply, from farm to food processor to American consumer. The term supermarket is uniquely American having its origins in 1933 as “a large self-service shop selling a wide range of groceries and household goods, often one of a chain of similar stores.” The large cavernous stores are also uniquely American though the model is now appearing in more and more countries throughout the world. The first American self-service supermarket, Piggly-Wiggly, opened in 1916 in Memphis, Tennessee. But today, the supermarket as we know it is in serious decline.

In 1989, supermarkets commanded 89% of all grocery purchases. Today they hold less than 50% of the market as they continue to lose ground to mega retailers such as Wal-Mart, dollar stores, club stores and 7-11 type convenience stores. The country is changing and with it there is a shift in how Americans purchase food.

We cook less. Eating home prepared meals is no longer the dominant pattern for family eating. The need for staples – flour, sugar, spices, baking powder – has declined. Many families stock none of these in their “pantry.” Some in fact store little in their pantries, purchasing more take-out or semi-prepared foods that can be heated and eaten at home with little or no preparation required. And, this trend is only getting stronger. Half of all the food we eat at home was prepared outside the home. More disposable income, hectic family schedules and nontraditional eating patterns favors fully-prepared, ready-to-eat foods. Though supermarkets have tried to compete with in-store take-out, restaurants still dominate the market.

We don’t even make coffee at home any longer. Starbucks, Dunkin’ Donuts and even McDonald’s are tempting us with away-from-home premium brews. Both Procter & Gamble and Kraft are rumored to be trying to sell off their coffee divisions because supermarket coffee brands have lost a large percent of the market share.

Instead of the typical 2 trips per week to the supermarket, today’s consumer uses 5 to 7 different consumer packaged goods outlets. Megastores, mass merchandisers, discount stores, club warehouses, drugstores and convenience stores – all of which stock food along with other products -- have seriously cut into the profits of the traditional grocery store.

Globalization and concerns about the environment are also impacting food purchases. Celebrity chefs, travel, and the never-ending supply of cooking shows have turned every American into a gourmet eater. Specialty stores such as Whole Foods, Trader Vic’s and Trader Joe’s have spring up to supply unique, ethnic foods and ingredients. These smaller retailers, along with the natural-organic-health food stores are meeting the increasing demand for organic, gluten-free, non-allergenic, and artisanal items the average grocery shopper is considering as weekly staples. Again, the supermarket and major brands have begun to offer similar products, but the smaller stores and boutique brands are still commanding a good share of the weekly grocery dollar.

Instead of the homogeneous shopper of old, the new American consumer comes to the supermarket toting a reusable bag along with health, social and environmental concerns. The standard product mix will no longer satisfy this shopper’s needs. The specialty chains and whole-foods type retailers are pulling away the grocery shopper with the most disposable income while the megastores and mass merchandisers gobble up the price-conscious consumer. The traditional supermarket lies somewhere in between. They find it difficult to stock a wide variety of boutique and ethnic brands along with traditional products, all of which they must sell at a price higher than can be found at Wal-Mart-like megastores.

It is unlikely supermarkets will disappear completely, but they will need to adapt and change to survive. Consumers needs and purchases will be driving forces in that change.

© NRH Nutrition Consultants, Inc.

Jo-Ann Heslin, MA, RD, CDN is a registered dietitian and the author of the nutrition counter series for Pocket Books with 12 current titles and sales in excess of 5 million books. The books are widely available at your local or on-line bookseller.
Current titles include:
The Healthy Wholefoods Counter, 2008
The Cholesterol Counter, 7th Ed., 2008
The Diabetes Carbohydrate and Calorie Counter, 3rd Ed., 2007
The Calorie Counter, 4th Ed., 2007
The Compete Food Counter, 2nd Ed., 2006
For more information on Jo-Ann and her books, go to www.TheNutritionExperts.com.

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