Willard Bishop Consulting Store Format Report

The Store Format Report is a cross section of retailers expanding and/or adding consumable products to their shelves. Willard Bishop Consulting has updated and expanded the number of store formats and redefined the retail market for grocery and consumable products. Sales in the expanded market in 2003 amounted to 3/4’s of a trillion dollars and are projected at almost one trillion dollars for 2008.

Traditional grocery stores held 56% of the total grocery and consumables market in 2003. Non-traditional formats are capturing market share from traditional grocery outlets in two distinct areas. Supercenters, warehouse clubs and mass merchants are benefiting from increased sales because they are low-price oriented, one-stop shopping stores visited by high spend shoppers. They account for 25% of the total grocery and consumables market. Convenience, Drug, and Dollar Stores are also gaining sales at the expense of traditional grocery outlets. They account for 18% of the market.

Willard Bishop Consulting is forecasting an 8% decrease in grocery and consumables market share for traditional grocery stores and a less than a half percent decrease for convenience stores from 2003 to 2008. Mass merchandisers will also experience a loss in market share of about 1.3% for the period because of conversions to supercenters and Kmart store closings. However, same store sales will increase for them because of additions of groceries and consumables.

Non-traditional formats are expected to increase their share of the grocery and consumables market by about 8.4% with supercenters benefiting the most from this market shift, followed by wholesale clubs, dollar stores and drug stores.

For more information, please contact Paul Little at paul.little@bishopconsulting.com.