Global Food Products Sales through Supermarkets to Reach US$1.7 Trillion by 2015, According to a New Report Published by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global outlook on the Supermarkets Industry. Food represents a major inventory carried by supermarkets accounting for an overwhelming proportion of merchandise globally sold through supermarkets. Changing consumer lifestyles, and their food habits are necessitating supermarkets to change inventory stocking styles in the food aisles. Rising consumer demand and emphasis on product choice, convenience, nutrition and health is resulting in supermarkets stocking a greater variety of ready-to-cook meals, semi-prepared dishes, pre-sliced fruits and vegetables and low calorie/fat foods packed in convenient single-serve and portion sized packages.

Supermarkets: A Global Outlook

Follow us on LinkedIn – Supermarkets have emerged as a leading global symbol, as well as a significant by-product of modern consumerism, though as a channel of retail sales, they are of vintage origin. The global supermarket industry is on course towards expanding its share in the global retail space. The growth of the industry has enabled many successful supermarket chains to emerge as leading retailers of the world. For instance, US based Wal-Mart continued to reign as the biggest retailer of the world, followed by Carrefour of France. Moreover, the recent mushrooming of regional players hailing from China, South Korea and Russia is illustrative of the opportunities prevalent in these countries. South Korea, China, India, and Indonesia, from the Asia-Pacific region hold promising growth potential in the (retail) supermarket industry, with the first three already ranked among the fastest developing markets. Within the supermarket industry, discount supermarkets are increasingly cornering a larger share. The trend has been especially pronounced of late, largely as a result of the growing consumer preference for cost-effective, price competitive products as they attempt to reduce their expenses against a backdrop of deteriorating economic conditions.

The business model adopted by the discount supermarkets allows them to offer products at a substantially lower price in comparison to traditional, large supermarkets. In most cases, the price difference between the products offered by the two formats can differ by 20% to 30%. The primary factor that helps the discounters to offer reduced prices is the limited assortment of product offerings. Frequently, only one product in each category is offered. Therefore, whereas a full selection, large supermarket may offer up to 40,000 different products, a discounter typically offers close to 1,000-2,000 different products. This substantial difference translates into significant savings on overhead and storage costs, translating into eventual lower prices for customers. In addition, the no-frills, minimalist store layout of the discount stores also results into lower costs, and consequently, lower prices for customers. The discounters are also taking advantage of the increased price sensitivity by offering their own private-label products, which offer substantially the same quality as the branded products, but at a much lower price point.

In the supermarkets industry, food products account for a major portion of supermarket sales, and new trends observed among supermarket patrons include an increased preference for private labels, natural/organic foods, free-range products, superfruits containing large amounts of antioxidants, energy drinks, ready-to cook products, as well as gluten-free foods. Consumers are expected to prefer value added products including superior and expensive private brands and labels along with discounted products at various warehouse clubs. Private labels including AIPC, Treehouse Foods and Ralcorp are expected to increasingly gain market presence and compete with each other for growth in sales volume. Companies with lower quality brands are expected to see a downgrade in market share.

As competition intensifies for the consumer’s dollar, supermarkets are adopting more effective practices and formats, innovative display methods, and increasingly using social networking sites such as Twitter and Facebook to promote their brands. Players in this space are increasing their brand promotion and advertisement efforts. Special emphasis during advertising and promotion campaigns is expected to be on social media and the Internet including use of banner advertisement, search engines, special websites, online coupons and videos. Regular downloading of coupons by customers on mobiles or computers is a developing trend throughout US, France, Canada, Germany, Japan, Turkey, South Korea, and Italy. An increased number of shoppers are expected to frequently use digital couponing as stores enhance programs to allow shoppers download conveniently and gain from special deals on smartphones. Retail giant Walmart voiced intentions to deliver savings offers through social networking sites on mobile phones, the Internet, cell phones, and its in-store media network.

The research report titled “Supermarkets: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends and demand drivers, in addition to providing statistical insights. Regional markets briefly abstracted and covered include United States, Japan, France, Hungary, Romania, Ukraine, UK, Turkey, China, India, Indonesia, Australia, and Brazil. The report offers a compilation of recent mergers, acquisitions, and strategic corporate developments. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of supermarket operators worldwide.

For more details about this comprehensive industry report, please visit –
http://www.strategyr.com/Supermarkets_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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