Alternative retailers are garnering market share from traditional grocery stores according to industry experts looking at sales revenue trends (Willard Bishop 2014).

Consumers are tending to use their purchasing power at either value oriented or specialty food stores (Goldman Sachs). Since the 2008 recession, many consumers are hesitant to pay full price. This trend coincides with millennial and boomers’ preference for convenient, healthy food choices. Grocery stores are stuck somewhere in the middle of discount and health-oriented retailers.

Low cost markets, such as Family Dollar, and high-end grocers, such as organic focused Whole Foods, show signs of continued growth. Traditional supermarkets, such as Publix and Kroger, are trying to adapt by matching offerings, but are having a hard time staying ahead of the trend curve.

Food manufacturers will benefit by taking note of where consumers are making their purchases and how these stores are positioning themselves when deciding on how to focus their product placement efforts.



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