What’s Ahead for the Traditional Supermarket?

Increasing competition and pessimistic forecasts herald a time of transition for supermarkets.

October 06, 2014

WASHINGTON – In today’s rapidly changing retail climate, no channel is safe from change and the traditional supermarket may be in for a big transition. According to an article in the Washington Post, experts say the industry is in the early stages of a massive shake-up, with rivals coming from all sides to siphon away customers.

Competition is coming from drug stores and convenience stores, as well as household names like Whole Foods, Target and Walmart. The news article cites a new report from  Jones Lang LaSalle’s retail research team that illuminates just how different the grocery store landscape is bound to look, and soon. According to the forecasts, traditional grocery stores distantly trail their rivals in two key measures of growth: expansion plans and projected sales.

According to the report, a key growth opportunity for grocery stores will be centered on entering into urban markets that typically have lower saturation of supermarkets. This will require retailers to rethink their footprints to accommodate the often-smaller urban retail footprints.

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