Grocery Industry News

Dollar General has 9.2% Sales Growth

Dollar General sales rose 12.7% to nearly $3 Billion and same-store sales grew by 9.2%. The chain is undertaking several key initiatives going foward to continue to drive sales growth. These initiatives include store remodels that include taller gondololas and increased private label offerings.

Family Dollar Launches Price Ads Vs. Supermarkets

Family Dollar Stores intend to target supermarket pricing in upcoming advertising campaigns that will point out that they carry the same items at lower price points. This is just one way Family Dollar is working to increase its food business. Family Dollar will begin introducing food items in its Family Pantry line that have been reformulated and repackaged with a new look and feel that more directly ties them to the logo. If customers see the link with Family Dollar, it will give them greater comfort.

Family Dollar is focused on food

Family Dollar is opening more than 500 new stores a year and expanding into urban centers. They have overseen a merchandising evolution in which department stores staples like apparel and shoes have given way to fresh food. Today, Family Dollar operates about 6,600 stores in 44 states and does annual sales of about $7 billion – with more than 60% of revenues coming from food and consumable items.

Walmart Supercenters – Sudden Impact

The message to the supermarket industry is that competition is becoming more intense. Project Impact is Walmart’s new method of marketing and selecting products to sell. Walmart is only opening supercenters now and are renovating many existing stores to turn them into supercenters. This will allow Walmart to focus on food and create additional competition with mainstream supermarkets for middle-class shoppers.

Target Expands Fresh Food to Boost Sales

Based on early results from test stores, Target Corp. here plans to expand its offerings of fresh food and produce at 100 of its general-merchandise stores by the end of the year as part of an effort to boost sales, though the locations of these stores is unknown. The sections offer a narrow selection of products from 90% of the food categories found in a larger grocery store

Thrifty Aldi Tests Groceries on Credit

Currently the bare bones grocer accepts only cash and debit cards. No credit card. No personal checks. No exceptions. Aldi has a credit card test under way at 15 stores in Oklahoma.

Most American Have Changed Their Eating Habits

Two out of three adults in the United States have changed their cooking and eating habits because of the economy, according to a new survey conducted by Harris Interactive for whole Foods Market Inc. One of the respondents who said their grocery shopping habits have been affected by current food prices, 54 percent are using more coupons, 50 percent are more likely to comparison shop and 45 percent are more likely to buy private label/grocery store brands.

Is Loyalty the Next Big Step for Promotions?

Strategically sound promotions do more than just create awareness and achieve short-term goals. If done properly, they can be a powerful source of direct and sustained earnings improvements and build loyalty with customers. The retailer must concentrate on how to influence consumer purchase behavior in a profitably way. This requires a thorough understanding of the role an item plays in the store. With store trips and shopper spending still down in this recession, retailers should revisit promotional practices and campaign selections.

More Retailers Say Yes to Food Stamps

Nearly 39 million people receive food stamps, now known as Electronic Benefit Transfers (EBT). This is up about 20% over 2008. Retailers ranging from Costco, 7-Eleven, Target and Family Dollars all accept EBT cards. About 5,000 of the 7,000 CVS stores accept EBT as well. Some retailers cite EBT as among the reasons for increased sales over last year.