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re: Why aren’t there more national grocery store chains?

Posted on 12/7/23 at 9:24 pm to
Posted by HoboDickCheese
The overpass
Member since Sep 2020
9418 posts
Posted on 12/7/23 at 9:24 pm to
No mention of Rouses? frick y’all

They aren’t nation wide though, yet
Posted by James11111
Walnut Creek
Member since Jul 2020
4690 posts
Posted on 12/7/23 at 9:28 pm to
quote:

Albertsons and Safeway are the same.


This is true. They have the same sales and my phone number works for both. Vonns also.

Who are the top 10 Grocers in the US?

quote:

1. WALMART INC.
Walmart once again top our list for the leader in grocery sales (it accounted for more than one-quarter of all grocery revenues in the United States) with FY2022 sales of $467 billion. This figure includes more than $73 billion dollars in sales attributed to U.S. Sam’s Club which is wholly owned by Walmart. Together, Walmart and Sam’s Club store count is greater than 5,300. WMT’s fiscal year ends on JAN 30 so FY22 includes 11 months of 2021 and we combine Walmart and Sam’s Club’s for purposes of this list. Although Walmart is not classified as a supermarket it dominates the U.S. grocery market and is, by far, the largest food retailer in the country and so it remains the number one grocery chain.

2. AMAZON (Online and physical stores)
We did not include Amazon in our previous lists however, with a growing brick and mortar store count (now that Whole Foods is integrated into the company) as well as effects of the pandemic on the industry we now peg Amazon as the #2 grocery retailer in the country. Amazon’s 2021 sales topped $239 billion and its physical store count is now 662. Amazon’s physical stores include Whole Foods Market, Amazon Fresh, Amazon Go Grocery and Amazon Go.

3. COSTCO WHOLESALE CORPORATION
In the US, Costco sells both branded and private-label grocery products online and through about 564 stores; its U.S. grocery sales totaled over $141 billion 2021. Price conscious consumers were responsible for raising Costco’s U.S. revenues by more than 15% compared to 2020. In addition, the company earned $27 billion in Canada.

4. THE KROGER CO.
Kroger’s revenue in 2021 climbed to over $137 billion, a 4% increase over 2020. The company runs 2,726 stores operating under the Kroger, Harris Teeter and Smith’s banners. While Walmart, Amazon and Costco sell more grocery items, Kroger retains it’s claim to being the largest supermarket chain in the country.

5. ALBERTSONS COS. INC.
Revenues in 2021 rose to over $71 billion across its 2,278 stores operating under the Safeway, Albertsons, and Vons grocery banners.
This post was edited on 12/7/23 at 9:32 pm
Posted by kciDAtaE
Member since Apr 2017
15919 posts
Posted on 12/7/23 at 9:29 pm to
I’m guessing distribution
Posted by Coke Man
Member since Nov 2023
22 posts
Posted on 12/7/23 at 9:30 pm to
Kroger and Albertson’s quality are nothing alike. Albertson’s is junk. There are some really nice Kroger’s in Texas.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37174 posts
Posted on 12/7/23 at 9:30 pm to
Safeway is now part of Albertsons. Bunch of nameplates between them.

They are in merger prep with Kroger and it’s proceeding slowly and likely to close in 2024.

They will need to divest some stores.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37174 posts
Posted on 12/7/23 at 9:32 pm to
quote:

Gotta be harder to start operating outside the region where your distribution exists. I think companies just buy regional grocery chains and continue to operate them as is. Look at who owns which chains


Right.

But you would think there is extra cost in maintaining all those systems and labels
Posted by Shepherd88
Member since Dec 2013
4595 posts
Posted on 12/7/23 at 9:32 pm to
Bc we ain’t China
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37174 posts
Posted on 12/7/23 at 9:34 pm to
quote:

Grocery is hard. Profit is a penny on the dollar.


Correct but usually consolidation helps with this.

There may be no better example of volume pricing than the grocery. It’s why all the local stores link up with co-ops like Assiciated Grocers
Posted by armsdealer
Member since Feb 2016
11536 posts
Posted on 12/7/23 at 9:38 pm to
The trend is when a Walmart comes in they shut down the local stores, they just out compete them on price but as people become unsatisfied with the Walmart selection usually a better ran more specialty local chain pops up near or in the exact same location as the former regional store. Walmart knows the pattern, that is why they started putting neighborhood markets everywhere. Just look at what happened on Range in Denham since they got a Walmart. There were 5 grocery Stores between Florida and I12... then just walmart after a few years. Then you slowly get Carters, Rouses, and Oak Point moving in where Albertsons, Winn Dixie and Delchamps were shut down. It doesn't happen overnight, but it happens.
Posted by ronk
Member since Jan 2015
6240 posts
Posted on 12/7/23 at 9:46 pm to
I didn’t realize Brookshires had such a footprint. Fresh by Brookshires is legit. Been to their Royse City and Tyler store.
Posted by Manlaw35
Member since Jan 2013
1302 posts
Posted on 12/7/23 at 9:48 pm to
I miss A&P. Remember shopping there with the family when I was young. Mom said they had really good roasts, coffee and peanut butter. I also miss K&B.


Posted by Paul Allen
Montauk, NY
Member since Nov 2007
75290 posts
Posted on 12/7/23 at 9:49 pm to
Woolco
Posted by Havoc
Member since Nov 2015
28690 posts
Posted on 12/7/23 at 9:50 pm to
quote:

It’s harder for national chains to keep regional tastes a priority…Walmarks is a different game and just panders to poors.

Our super Walmart in Covington has made good maybe great strides in providing more localized products.
Posted by Morpheus
In your Dreams
Member since Apr 2022
4306 posts
Posted on 12/7/23 at 9:51 pm to
HEB will be nationwide one day, if you're lucky.

Only problem will be by then in will no longer a private company and will be publicly traded and will never be the same.
Posted by mdomingue
Lafayette, LA
Member since Nov 2010
30910 posts
Posted on 12/7/23 at 9:52 pm to
quote:

IDK the answer but I hope HEB doesn't do anything foolish.



They should expand west to about Lafayette then stop
Posted by Powerman
Member since Jan 2004
162264 posts
Posted on 12/7/23 at 10:00 pm to
quote:

Whole Foods

Trader Joe's


You can add Sprouts and Natural Grocers to that list

They're smaller niche stores but they're national
Posted by OWLFAN86
The OT has made me richer
Member since Jun 2004
176290 posts
Posted on 12/7/23 at 10:03 pm to
mob control of trucking companies til the 70s
Posted by Fat and Happy
Baton Rouge
Member since Jan 2013
17076 posts
Posted on 12/7/23 at 10:07 pm to
I do love me some rouses or Albertsons
Posted by Purplehaze
spring, tx
Member since Dec 2003
1833 posts
Posted on 12/7/23 at 10:08 pm to
The main problem with expansion is distribution centers and the problems with setting them up and then having the right amount of good store locations that feed off of the distribution center. In addition, you have to be willing to personalize the stores in order to cater to local tastes. Finally you have to assess how far most of your store brands have to travel in orderto stock those distribution centers and the effect on pricing in order to make that profit.
Posted by Cleathecat
Houston
Member since Feb 2021
682 posts
Posted on 12/7/23 at 10:27 pm to
Heck Heb just got to Dallas!
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