Retail, beer and grocery
trends in the US
TRENDS INNOVATIONS
Grocery Retail Market Sizes 2006
1.
.12.4
2.
Japan
539.8
3.
China
377.0
4.
France
285.5
5.
Germany
264.3
6.
India
236,5
7.
Italy
182.8
9.
Russia
143.9
10.
Mexico
143.2
World of Heineken 37 - Winter 2007/2008
The US economy is the largest
on the planet. The country has
a population of more than 300
million, and the country's four
most populous states (California,
Texas, New York and Florida)
each have more inhabitants
than many countries around the
world. Americans are also some
of the world's biggest spenders,
with per capita spending topping
$30,000 per year
The US grocery retail sector is also the
largest in the world, valued at more than
$800 billion*. Over the past three years,
grocery expenditure has measured 28 per
cent of the total retail market.
The structure of the US grocery market is
complex, an IGD report explains. In recent
years retail outlets offering an alternative
last year 33 per cent in volume."
Potential challenges and further growth
Increased utility prices such as petrol
are negatively impacting US disposable
income. In addition, uncertainties
surrounding the US housing market could
lead to a decline in consumer spending*.
However, Wal-Mart - which dominates
the US grocery retail sector with a 28.8
per cent share of the market - reported
continuing net sales growth throughout
2007. Many market analysts still expect
consumer spending to continue to grow,
while predicting a slow down in US retail
sales.
bmiexpress@aol.com
*Source: IGD Retail Analysis
to traditional supermarket chains have
emerged. In total, the US has seven
major grocery channels (hypermarkets,
supermarkets, convenience stores, drug
stores, discount retailers, member's
club wholesalers and dollar stores). This
increased complexity is changing the
dynamic of the US grocery market, with
strong growth being recorded in the
warehouse, convenience and dollar store
sectors. Costco Wholesale, for example,
estimates there is potential for one Costco
warehouse per 250,000 US inhabitants,
and pledged to open more than 30 new
warehouses in 2007*.
Conversely, the number of supermarket
stores operating in the US is in decline.
In order to differentiate itself from other
supermarket chains, Safeway kicked off its
Lifestyle Store concept in 2003, redesigning
many of its outlets and offering a wider
range of prepared meals, organics foods
and higher quality produce. By the end of
2008, Safeway aims to have 77 per cent
of all stores in the US operating under the
Lifestyle format. At the same time, Tesco is
making its launch on the US west coast with
store openings planned in Phoenix, San
Diego, Los Angeles and Las Vegas.
Top 10 Global Markets
Country
Grocery Retail Market
(US$ bn)
USA
Source: IGD Datacentre estimates
"Despite this segmentation of the US
grocery sector, the supermarket remains
a strong channel for Heineken," says Benj
Steinman from Beer Marketer's INSIGHTS.
"The American consumer continues to
'trade-up' to more sophisticated high end
products, which is reflected in the 2007
sales figures. In the supermarket segment,
Heineken Premium Light volume was up
36
