The Food Institute has released a study saying that the nation’s supermarkets had a tough holiday season with weaker-than-expected sales, and that things don’t seem to be improving.
Supermarket sales during December posted the largest decline since March of 1998, down 1.5 percent. "And, when the inflation rate for food is considered, that decline is even more substantial," said Brian Todd, President of The Food Institute.
"A good portion of this decline can be attributed to increased sales in other retail formats that are selling more and more food products," Todd said. "In most regions, discount chains and warehouse clubs recorded better results than supermarkets."
Supermarket sales during December posted the largest decline since March of 1998, down 1.5 percent. "And, when the inflation rate for food is considered, that decline is even more substantial," said Brian Todd, President of The Food Institute.
"A good portion of this decline can be attributed to increased sales in other retail formats that are selling more and more food products," Todd said. "In most regions, discount chains and warehouse clubs recorded better results than supermarkets."
- KC's View:
-
The question that these supermarket companies have to ask themselves is whether the enemy is the opposition, or whether “the enemy is us,” as Pogo said.
It probably is some combination of the two. The thing is, a retailer can’t change how the competition operates…only how he or she operates.
