Is the one-stop grocery shop coming to an end?
The days when consumers made one big shopping trip to their local supermarket may be a thing of the past as households increasingly designate specific stores for items such as fresh produce and meat while stocking up on other items such as paper and plastic goods at another.
According to data published on Statista’s website, members of the average American household made 1.6 weekly trips to the grocery store in 2016. The research firm Magid, USA Today reports, has found that half of the grocery shoppers in America make three or more trips to the store every week.
“We’re in the throes of the decline of the one-stop shop,” Matt Sargent, senior vice president of Magid, told the paper. “We’re seeing smaller specialty stores pulling from super centers and traditional grocery stores.”
The newest retailer looking to prove the popularity of small stores is the German grocery chain Lidl, which is opening stores measuring about 36,000-square-feet. The grocer, which emphasizes premium private labels over national brands, began opening its first American locations last month. The chain plans to have 100 stores operating along the East Coast in its first year. Lidl recently announced plans to open a regional headquarters and distribution center in Cartersville, GA. The company’s national headquarters is in Arlington, VA.
While building smaller stores may be the trend in grocery construction today, Wegmans proves that what you put inside the box is key to actual performance. The family-owned chain is tied with Publix for the top spot among grocery stores on Market Force Information’s customer loyalty index. Wegmans’ stores typically run between 75,000 and 140,000-square-feet, with the largest stores carrying up to 70,000 products. The chain has expanded its footprint in recent years, moving up to Massachusetts and down the East Coast to Maryland and Virginia. It currently operates 93 stores across six states.
- Consumers’ weekly grocery shopping trips in the United States from 2006 to 2016 – Statista
- Grocery shopping is no longer a one-stop experience – USA Today
- Lidl US Announces new Regional Headquarters and Distribution Center In Georgia – Lidl
- Why is Walmart so concerned about Aldi and Lidl? – RetailWire
- What makes consumers so loyal to Publix, Wegmans, Trader Joe’s and H-E-B? – RetailWire
- Company Overview – Wegmans
DISCUSSION QUESTIONS: What factors are driving multiple weekly trips to grocery stores? What can retailers do to capture greater share of the opportunity associated with this trend? Do you think that the movement to smaller stores will continue in the grocery channel?