Supercenter or Club Warehouse — Are they the end of our neighborhood Grocer

We have all witnessed the increased number of supercenters and club warehouse retailers in our communities.  You probably remember the outcries when the first Walmart came to your neighborhood.  Now, consumers are driving this trend.  People want one-stop shopping and better prices.  They want to buy their kids school supplies, underwear and salad fixings all in the same place.  The largest job growth in the food and grocery industry has occurred with the supercenters and club warehouses.  Food, Beverage and General merchandise represent 1 out of every 3 private sector jobs.  The larger brands are using acquisition as a growth strategy and smaller stores that don’t offer the variety are disappearing.

What does this mean for people currently working in these industries or people wanting to pursue careers in this industry.  Join our discussion on facebook or on the Employee Help Source Forum. You can read our recently posted article at:   http://employeehelpsource.com/rooms./the_service_floor.

Dee Jones, Employee Help Source

Forum Global Moderator

 

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In follow-up to our article on big box stores moving into the grocery business, we stumbled upon several articles about Walgreens. Walgreens is not what we would normally consider a big box store but it certainly is one of the largest pharmacy retailers in the USA.

An experiment in Chicago, in an area labeled as the ‘food desert,’ the neighborhood Walgreens began carrying grocery items. This worked well for the pharmacy chain because they didn’t have to open new stores. They were already operating pharmacies in these locations. They re-allocated about 25% of their square footage to food. This was in November 2010. The super pharmacy chain began what was intended to be a model that they would implement in other parts of the country.

The latest news is Walgreen’s launch of their private-label line of food items called “Nice!.” Products include dried fruit, rice, canned soup and other grocery shelf items.

They are filling an interesting niche market. Areas were the local grocers have all but disappeared and there are virtually no healthy food choices.

This is further evidence that the grocery chain landscape is changing. These changes will change careers for people in the grocery industry in interesting ways. The product offerings will change the experience and job content for in store retail employees and corporate positions will have to learn new lines of business. Additionally, Walgreens supply chain will change as to support their private label as well as expansion of other grocery products in their stores.

Dee Jones

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