FoodLogistics.com |

Madison, WI — Supermarkets are seeing the largest sales growth in seven years, according to What’s In Store 2008, the trends report from the International Dairy-Deli-Bakery Association (IDDBA). But supermarkets still face stiff competition from other food outlets, including supercenters and convenience stores, which are vying for a share of this $482.7 billion industry. Here are some of the venue trends discussed in What’s In Store 2008:

The number of supercenters more than tripled from 1996 to 2006, from 708 to 2,613 outlets; 62 percent of American households shop at them, according to figures from the Nielsen Company. Supercenters are challenging grocery stores’ bakery, deli, and dairy departments, holding 11 percent to 13 percent of the channel share in each of these departments, compared to grocery stores’ 73 percent to 79 percent channel share, according to Times & Trends by Information Resources, Inc.

Convenience store numbers increased to 145,119 by the end of 2006 according to TDLinx, a service of The Nielsen Company (compare that with 104,600 convenience stores a decade ago). Their market share among all food retailers was 16.2 percent. By 2011, food sales from convenience stores should reach $166.1 billion from approximately 148,131 outlets. Market share is predicted to remain steady.

Meanwhile, convenience store operators are bracing for the expansion of Tesco’s Fresh & Easy, the convenience store format of the retailing powerhouse from the United Kingdom. Tesco is known for its operational efficiency and fresh prepackaged foods. Its convenience format provides top-quality grab-and-go sandwiches and entrées in a small store with about half a dozen checkouts. Tesco’s first Fresh & Easy store opened in early November. Many analysts expect the chain to shake up America’s view of convenience stores and possibly prompt other big operators into the format.

What’s In Store 2008 details consumer and industry trends affecting the dairy case, cheese case, bakery, and deli/foodservice departments. Its 149 tables, developed in cooperation with leading industry firms and associations, include department sales, per capita consumption, consumer preferences, and random-weight, UPC, and private label sales data. The full report is available from IDDBA. The cost is $99 for IDDBA members and $399 for non-members, plus shipping and handling. Purchasers of the report also gain on-line access to quarterly random weight sales data throughout the year.