Thesis: Grocery Stores Industry

Pages: 1 (476 words)  ·  Style: APA  ·  Bibliography Sources: 5  ·  Level: College Senior  ·  Topic: Agriculture  ·  Buy This Paper

Grocery Stores

There are several factors driving change in the external environment of the grocery store industry. Growth in Internet grocery shopping was rapid in the early part of this decade up to $2.4 billion in 2004. This represents 0.4% of total grocery store sales, and development has been hampered by the cost structure of online grocery shopping. Other technology initiatives have been more important industry drivers, such as electronic data interchange (EDI). Another key technology is electronic benefits transfer (EBT) and self-checkout technology. Product innovation in recent years has included strong growth in the organic category. Product tracking systems have allowed grocery stores to tap into changing demographics to offer increased product specialization. This plays to shifts in consumer preferences for more cuisine diversity and increased pre-prepared foods. The latter represents a trend in recent years away from groceries as ingredients to groceries as complete meals. There has also been a strong move towards organic foods, which has only recently begun to taper off.

The industry's long-term growth rate is stable. Because the product is a staple of life, growth tends to mirror growth in the population, with a minor element tied to the economy. The major new competitor in food is Wal-Mart, which has quickly captured a market share expected to hit 35% nationwide by 2010. They have driven increased efficiency in the grocery industry and, along with Costco, a trend towards warehouse stores. The inventory… [END OF PREVIEW]

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Cite This Thesis:

APA Format

Grocery Stores Industry.  (2008, December 16).  Retrieved July 21, 2019, from

MLA Format

"Grocery Stores Industry."  16 December 2008.  Web.  21 July 2019. <>.

Chicago Format

"Grocery Stores Industry."  December 16, 2008.  Accessed July 21, 2019.