Broad Street Licensing Group Food News

Philadelphia Story: the Changing Face of Food Retailing

Photo courtesy of http://en.wikipedia.org/wiki/User:Spikebrennan

Some of you know that Broad Street Licensing Group has its roots in the City of Brotherly Love, but an analysis of the Philadelphia grocery marketplace will tell a lot about the changing state of food marketing.[1]

The #1 chain in terms of market share is Wakefern’s ShopRite banner. But more telling: $3.8bn of the $13.7bn or 27% of the spend on food in Philly was racked up by “non-traditional” retailers like CVS, Walgreens and Rite-Aid, not to mention 7-Eleven.

If mass merchants Target, K-Mart and Wal-Mart, and club store BJ’s are excluded, and only traditional grocery stores are factored in ($7.66bn), then the percentage rises to almost half (49%).

And who is the #4 grocery retailer in the market? C-store Wawa.

Of the top 20 grocery retailers, only half are traditional grocery chains.

THE PHILADELPHIA STORY

Store Name	Number of Stores	Sales ($MM)	Share (%)
1. ShopRite	43	1,700	11.42
2. Acme	69	1,570	10.56[2]
3. Giant Food Stores	47	1,530	10.29[3]
4. Wawa	280	1,440	9.65
5. Rite-Aid	252	884.1	5.94[4]
6. A&P/Superfresh/Pathmark	40	850.8	5.72[5]
7. Wal-Mart	37 SuperCenters	831.1	5.59
8. CVS	187	817	5.49
9. Genuardi’s	28	733.7	4.93[6]
10. Target	29	534.4	3.59
11. Walgreens	90	480.9	3.23
12. BJ’s Wholesale Club	12	413.9	2.78
13. Wegmans	6	371	2.5[7]
14. Save-A-Lot	34	258	1.74
15. Sam’s Club	7	238.2	1.6
16. Triftway/Shop’N’Bag	21	230.5	1.55
17. Redner’s Market	10	222.7	1.5
18. K-Mart	29	210.9	1.42[8]
19. 7-Eleven	179	201.3	1.35
20. Whole Foods	8	191.6	1.29

Marketing

[1] Source: Philadelphia Business Journal.

[2] Parent company Eden Prairie, Minn.-based Supervalu Inc. shuttered seven stores in 2011.

[3] Owned by Dutch retail conglomerate Ahold, Giant was projected to overtake Acme in 2012.

[4] The Camp Hill, PA company has a pilot program with Save-A-Lot in North Carolina to co-brand 10 stores carrying a full line of groceries and drug products.

[5] Parent company Great Atlantic & Pacific Tea Co. has been closing stores since filing for bankruptcy protection in December, 2010, closing seven stores while opening only one Superfresh.

[6] Parent company Safeway will sell 16 stores to Giant Foods, close three and seek buyers for the remaining eight.

[7] The Rochester, N.Y.-based company will open two new stores, and at 140,000 ft.² are 2x the size of a conventional supermarket.

[8] K-Mart closed four stores in 2011.