DISCOUNTERS PUT STAMP ON SUPERMARKET INDUSTRY.Byline: Philip Lempert Chicago Tribune Chicago Tribune Daily newspaper published in Chicago. The Tribune is one of the leading U.S. newspapers and long has been the dominant voice of the Midwest. Founded in 1847, it was bought in 1855 by six partners, including Joseph Medill (1823–99), who made the paper You may think of them as the best places to buy socks or pans, but would you buy peanut butter at Kmart or milk at Target? Some of the country's large discounters hope so, as they continue to try and become as big a force in the food business as they have in general merchandise. The primary weapon in their arsenal is the so-called supercenter, which combines a large grocery store with a discount store. MMR MMR measles-mumps-rubella (vaccine); see measles, mumps, and rubella vaccine live, under vaccine. MMR abbr. measles, mumps, rubella vaccine , a New York-based trade publication that covers mass merchandisers, reports that the supercenter is growing faster than any retail format. A study by management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects firm McKinsey & Co. reports that the number of supercenters in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. could grow to more than 1,800 by 2003. At the Food Marketing Institute's convention in Chicago in May, Management Horizons (a consulting division of Price Waterhouse) predicted in a Retailing 2005 report that ``supercenters will reach $65 billion in food sales ... which will equate e·quate v. e·quat·ed, e·quat·ing, e·quates v.tr. 1. To make equal or equivalent. 2. To reduce to a standard or an average; equalize. 3. to more than 10 percent of food sales nationwide.'' Tom Rubel ru·bel n. See Table at currency. [Belarusian, from Old Russian rubl  , cut, piece; see ruble.]Noun 1. , managing partner of Management Horizons, also said that Wal-Mart is likely to become the country's No. 1 food retailer by 2005. A major challenge for stores pioneering this format is to prove they know something about selling food. One way these stores hope to win customer loyalty is by establishing or expanding private-label programs, or by selling products whose label is tied exclusively to their stores. Wal-Mart, the top supercenter operator with more than 270 stores, has a full grocery selection, including fresh meat, a bakery and deli. It has more than 800 items under its Great Value and Sam's American Choice labels, most of which are food products. Supermarket News reported that Wal-Mart had about 3 percent of retail food sales in 1995. Target is pursuing the strategy more cautiously than its competitors. It has opened four supercenters and plans to open six more. Under its Archer Farms Archer Farms is the store brand of premium foods offered exclusively by Target Corporation.[1] Archer Farms products can be found in all Target stores. The Archer Farms slogan is Tasty Food, Tasty Price. References 1. label, sold in SuperTargets only, are products such as ice cream, milk, eggs and bread; plans include pasta and cereal. Amenities at SuperTargets include a hot and cold deli, juice and coffee bar, bakery and restaurant. Kmart has consolidated many private labels under its American Fare name, with 300 grocery items available only in its SuperK Centers. The question is whether grocery shoppers will feel comfortable in these larger stores. The past few years have seen the hypermarche concept (grocery and merchandise in a single store) fail, not to mention lackluster results from the food stores within Kmart's SuperK. Supermarkets are about to fight one of their biggest battles ever against these discounters. ``The bottom line is that it is a good environment for consumers since it assures them of the selection of quality retailers and competitive prices,'' said Dianne Maffia, director of public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most at Jewel Food Stores Jewel Food Stores could refer to:
In this war, shoppers may net the biggest gain. |
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