Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Grocery Retailing - US - November 2016

"The grocery industry is arguably the most dynamic and fragmented retail sector there is. Groceries are deemed necessities so this industry remains somewhat protected from outside influencers that could cause steep sales variances, but the largest factor right now impacting the category is declining foods costs. This benefits the shopper but not so much the supermarkets or farmers. Yet, sales through MULO (multi outlet) channels are expected to reach $649 billion this year, and keep growing to hit $727 billion by 2021 (+12%). Common areas of strategic focus in the industry include produce/perishables improvement, click-and-collect services, e-commerce, and creating experiences that enhance the shopping process."

- Diana Smith, Associate Director

This report will cover the following areas:

  • Sales rise in a deflationary market
  • Online shopping still a Wild West
  • Multistop shopping process

 

This Report focuses on all retail channels that provide grocery products including traditional supermarkets, warehouse clubs, natural markets (eg Whole Foods Market and Trader Joe’s), drug stores, dollar stores, convenience stores, internet retailers (eg Peapod and FreshDirect), and farmers markets.

Groceries are defined as products such as food, beverages, cleaning products, household goods (eg toilet paper, garbage bags), and/or personal care products (eg lotions, vitamins, and pharmacy products).

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Sales rise in a deflationary market
            • Figure 1: Total US MULO sales and fan chart forecast of groceries, at current prices, 2011-21
          • Online shopping still a Wild West
            • Figure 2: Online shopping attitudes and behaviors, November 2013, August 2015, and August 2016
          • Multistop shopping process
            • Figure 3: Purchase incidence by channel, August 2016
            • Figure 4: Number of stores shopped, August 2016
          • The opportunities
            • Get the basics right
              • Figure 5: Top five categories purchased at supermarkets, August 2016
              • Figure 6: Purchase drivers, by household income, August 2016
            • Take time to get to know the customers
              • Figure 7: Efficiency-related desired improvements, August 2016
            • Bring on the in-store experiences
              • Figure 8: Experience-related desired improvements, by generation, August 2016
            • What it means
            • The Market – What You Need to Know

              • Market slated for growth
                • Supermarkets continue to lose
                  • Hot competition for food and drink sales
                    • Other grocery categories are an opportunity area
                      • Americans gets healthier
                      • Market Size and Forecast

                        • MULO sales continue to climb
                          • Figure 9: Total US MULO sales and fan chart forecast of groceries, at current prices, 2011-21
                          • Figure 10: Total MULO sales and forecast of groceries, at current prices, 2011-21
                      • Market Breakdown

                        • Supermarkets versus the “other” guys: The gap widens
                          • Figure 11: Total MULO sales and forecast of groceries, by retail channel, at current prices, 2011-21
                          • Figure 12: Total MULO percentage of grocery sales, by retail channel, at current prices, 2011-21
                        • Food and drink account for two thirds of sales
                          • Figure 13: Total MULO sales of groceries, by category, at current prices, 2011-16
                          • Figure 14: Total US MULO category market share of groceries, by segment and retail channel, at current prices, 2011-16 (est)
                      • Market Perspective

                        • At-home versus away-from-home: Which is winning?
                          • Figure 15: Food sales at home and away from home, January 2010-June 2016
                        • Lower DPI likely to lead to more eating at home
                          • Figure 16: Disposable Personal Income change from previous period, August 2014-July 2016
                      • Market Factors

                        • Younger generations reportedly shopping more
                          • Figure 17: US population by generation, 2016
                        • Growing Hispanic and Asian markets continue to influence grocery sector
                          • Figure 18: Generations, by race and Hispanic origin, 2016
                        • Americans are trying to be healthier
                          • Figure 19: Attitudes toward food, by diet status, June 2016
                        • Food prices are falling
                          • Figure 20: Changes in food at home price indexes, 2015-16
                        • Food-price deflation squeezes profits while competition intensifies
                          • Figure 21: Distribution of expenditures for food for off-premise consumption, by retail channel, 1996-2016
                        • Going local is still cool
                        • Key Players – What You Need to Know

                          • A very fluid marketplace
                            • Meal kit services catch on
                              • Target looks again to build up grocery division
                                • In-store registered dieticians and other services becoming commonplace
                                • What’s Working?

                                  • Sales of leading grocery retailers and wholesalers
                                    • Figure 22: Top US retailers, 2016
                                  • Discount grocers faring well with Aldi paving the way
                                    • Meals on-the-go feed the convenience culture
                                      • For those who want to cook but not shop: Meal/ingredient kits
                                        • For those who don’t mind shopping but don’t want to cook: Grab-and-go prepackaged foods or cook-to-order meals
                                          • For those who don’t want to cook or shop: Ready-to-eat meal delivery
                                          • What’s Struggling?

                                            • Target as a grocery destination: “We’re working on it”
                                              • Improvements underway
                                              • What’s Next?

                                                • Make room for Lidl
                                                  • Supermarkets as one-stop shopping destinations
                                                    • Health and wellness: Dieticians
                                                      • Clothing and home goods
                                                        • Future of food is in 3D
                                                          • Automation hits the aisles
                                                          • The Consumer – What You Need to Know

                                                            • Men are shoppers too
                                                              • Grocery shopping is a journey by default
                                                                • Online shopping continues to climb
                                                                  • Produce and dairy are supermarkets’ defense against e-tailers
                                                                    • The endless cycle of consumer demand: More for less
                                                                    • The Primary Grocery Shopper

                                                                      • Grocery shopping is mostly an assigned duty
                                                                        • Figure 23: Grocery shopping responsibility, August 2016
                                                                      • Men play a more important role
                                                                        • Figure 24: Grocery shopping responsibility, by key demographics, August 2016
                                                                        • Figure 25: Changes in grocery shopping responsibility, by select demographics, August 2016
                                                                      • Over four in 10 consumers enjoy grocery shopping
                                                                        • Figure 26: Changes in grocery shopping responsibility, by age and income and Hispanic origin, August 2016
                                                                    • Purchase Incidence by Channel

                                                                        • Supermarkets holding steady but Walmart and other discounters on their heels
                                                                          • Figure 27: Purchase incidence by channel, August 2016
                                                                        • Lower-income consumers less likely than all to shop at supermarkets
                                                                          • Figure 28: Purchase incidence by channel, by age and household income, August 2016
                                                                        • Supermarkets can increase appeal to multicultural shoppers
                                                                          • Figure 29: Purchase incidence by channel, by race and Hispanic origin, August 2016
                                                                        • Nearly one third of consumers feel forced to shop around
                                                                          • Figure 30: Number of stores shopped, August 2016
                                                                          • Figure 31: Percentage of those shopping at three or more stores, by generation, August 2016
                                                                      • Online Shopping Attitudes and Behaviors

                                                                          • Momentum picking up but adoption still slow
                                                                            • Figure 32: Online shopping attitudes and behaviors, November 2013, August 2015, and August 2016
                                                                            • Figure 33: Technology used when shopping for food and drink, August 2016
                                                                          • Click-and-collect services deemed saviors for those on-the-go
                                                                            • Figure 34: Online shopping and pick up at store behaviors, August 2015 and August 2016
                                                                          • Who’s buying online?
                                                                            • Figure 35: Online shopping and pick up at store behaviors, by select demographics, August 2016
                                                                          • What foods and beverages are they buying online?
                                                                            • Figure 36: Top five food and beverages purchased for delivery/pick up, August 2016
                                                                          • What’s Amazon up to?
                                                                            • Online grocery market still up for grabs
                                                                            • Channels Shopped by Item

                                                                                • Supermarkets for food/drinks; Mass merchandisers for everything else
                                                                                  • Figure 37: Channels shopped by item, August 2016
                                                                                • Produce and dairy are supermarkets’ best defense against e-tailers
                                                                                  • Figure 38: Categories purchased at supermarkets, August 2016
                                                                                • Fresh food huge priority for Walmart
                                                                                  • Figure 39: Categories purchased at mass merchandisers, August 2016
                                                                                • Club channel sees steady performance; opportunity to increase BPC
                                                                                  • Figure 40: Categories purchased at warehouse clubs, August 2016
                                                                                • Are organic stores too niche?
                                                                                  • Figure 41: Categories purchased at organic/natural grocery stores, August 2016
                                                                                  • Figure 42: Nonshoppers at organic/natural grocery stores, by generation, August 2016
                                                                                • Shelf-stable products top online shoppers’ orders
                                                                                  • Figure 43: Categories purchased online*, August 2016
                                                                              • General Attitudes and Behaviors

                                                                                  • One third spend $150 or more on groceries each week
                                                                                    • Figure 44: Average grocery expenditures per week, April 2015-June 2016
                                                                                  • Most people prefer to stock up
                                                                                    • Figure 45: Number of times shopped at select stores in last four weeks, April 2015-June 2016
                                                                                    • Figure 46: Preference on stocking up versus fill-in trips, by generation, August 2016
                                                                                  • Brand versus price: HHI a factor
                                                                                    • Figure 47: Purchase drivers, August 2016
                                                                                    • Figure 48: Attitudes toward spending, January 2016
                                                                                  • Coupons remain a vital resource
                                                                                    • Figure 49: Coupon usage, April 2011-June 2016
                                                                                • Desired Improvements

                                                                                    • Consumers seek convenience, service, and better selections
                                                                                      • Efficiency
                                                                                          • Figure 50: Efficiency-related desired improvements, August 2016
                                                                                        • Experience
                                                                                          • Figure 51: Attitudes toward in-store experiences, by generation, August 2016
                                                                                          • Figure 52: Experience-related desired improvements, by generation, August 2016
                                                                                        • Choice
                                                                                          • Figure 53: Selection-related desired improvements, August 2016
                                                                                        • TURF analysis reveals opportunities to maximize reach
                                                                                          • Figure 54: TURF Analysis – Desired improvements, August 2016
                                                                                          • Figure 55: Table – TURF Analysis – Desired improvements, August 2016
                                                                                      • Appendix – Data Sources and Abbreviations

                                                                                        • Data sources
                                                                                          • Sales data
                                                                                            • Fan chart forecast
                                                                                              • Consumer survey data
                                                                                                • Abbreviations and terms
                                                                                                  • Abbreviations
                                                                                                    • Terms
                                                                                                    • Appendix – Market

                                                                                                      • Total MULO sales
                                                                                                        • Figure 56: Total MULO sales and forecast of groceries, at inflation-adjusted prices, 2011-21
                                                                                                        • Figure 57: Total MULO sales of groceries, by retail channel, at current prices, 2014 and 2016
                                                                                                      • Supermarket sales
                                                                                                        • Figure 58: Supermarket sales of groceries, at current prices, 2011-21
                                                                                                        • Figure 59: Supermarket sales of groceries, at inflation-adjusted prices, 2011-21
                                                                                                        • Figure 60: Supermarket sales of groceries, by category, at current prices, 2011-16
                                                                                                      • Other MULO sales
                                                                                                        • Figure 61: Sales of groceries through other MULO retailers*, at current prices, 2011-21
                                                                                                        • Figure 62: Sales of groceries through other MULO retailers*, at inflation-adjusted prices, 2011-21
                                                                                                        • Figure 63: Sales of groceries through other MULO retailers*, by category, 2011-21
                                                                                                      • Additional data
                                                                                                        • Figure 64: Detailed distribution of expenditures for food for off-premise consumption, by retail channel, 1996-16
                                                                                                        • Figure 65: Average number of children per household, 2005-15
                                                                                                        • Figure 66: Population by race and Hispanic origin, 2011-21
                                                                                                        • Figure 67: US gasoline and diesel retail prices, January 2007-August 2016
                                                                                                        • Figure 68: Average expenditures on food of all consumer units, 2013-15
                                                                                                    • Appendix – Consumer

                                                                                                        • Figure 69: Attitudes toward locally grown food, April 2012-June 2016
                                                                                                        • Figure 70: Barriers to using online technology, August 2016
                                                                                                        • Figure 71: Number of times shopped at any supermarket in last four weeks, April 2011-June 2016
                                                                                                        • Figure 72: Where coupons are redeemed, April 2015-June 2016
                                                                                                        • Figure 73: Types of coupons used, April 2015-June 2016
                                                                                                        • Figure 74: Supermarkets/food stores shopped in past four weeks, October 2015-June 2016

                                                                                                    Companies Covered

                                                                                                    To learn more about the companies covered in this report please contact us.

                                                                                                    Grocery Retailing - US - November 2016

                                                                                                    US $3,995.00 (Excl.Tax)