Get documents about "Overview of the Retail Grocery Market in the Southwest
Document Sample
Overview of the Retail Grocery Market in the
Southwest United States
September 2008
The Government of Canada has prepared this report based on primary and secondary sources
of information. Readers should take note that the Government of Canada does not guarantee
the accuracy of any of the information contained in this report, nor does it necessarily endorse
the organizations listed herein. Readers should independently verify the accuracy and
reliability of the information. This report is intended as a concise overview of the market for
those interested in its potential and is not intended to provide in-depth analysis which may be
required by the individual exporter. Although every effort has been made to ensure that the
information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its
accuracy, reliability, or for any decisions arising from the information contained herein.
Please address any comments or suggestions you have on this report to:
Ben Berry - berryb@agr.gc.ca
Overview of the Retail Grocery Market in the Southwest
United States
Table of Contents
Overview ...................................................................................................... 3
Southwest Region .......................................................................................... 4
Retail Grocery Market Overview ......................................................................11
Supermarkets ............................................................................................11
Convenience Stores ....................................................................................11
Mass Merchandisers....................................................................................12
Warehouse Clubs .......................................................................................13
Dollar Stores .............................................................................................14
Store Redesigns .........................................................................................15
Smaller-Format Convenience Segment ..........................................................16
Current Economic Conditions ..........................................................................17
National Consumption Trends and Opportunities ................................................19
Healthier Options .......................................................................................19
Larger-Sized Formats..................................................................................19
Ready-Made Meals .....................................................................................20
Ethnic Food ...............................................................................................20
Specialty Food ...........................................................................................20
Organics ...................................................................................................21
Local Food.................................................................................................21
Key Target Markets .......................................................................................22
Ethnic Consumers ......................................................................................22
Halal and Kosher Food Markets ....................................................................26
Mediterranean Food Market .........................................................................26
Market Access ..............................................................................................26
Key Resources ..............................................................................................27
Overview of the Southwest Retail Grocery Market 2
Overview of the Retail Grocery Market in the Southwest
United States
Overview
The Southwest United States, comprised of the states of Arkansas, Kansas,
Louisiana, New Mexico, Oklahoma and Texas, offers a number of unique and
recognizable types of cuisine, the presence of top-tier food companies (including
Wal-Mart, SYSCO, Tyson and Whole Foods Markets) and a large and ethnically
diverse population to market agri-food products. The region’s growing retail grocery
market is fuelled by its 39.4 million consumers, which account for more than 13% of
the total American population. Although grocery sales in the Southwest are
dominated by the state of Texas (the second largest retail grocery market in the
United States), the rest of the region is also experiencing strong market growth. The
south-western states offer a highly dynamic environment for grocery retailers, with
increasing competition from mass merchandisers and alternative grocery store
formats, as well as retailers that are tailoring their offerings and formats to meet
changing consumer demand. This competitive environment provides opportunities
for a wide range of agri-food products and thus is an attractive market for Canadian
agri-food exporters.
Quick Facts
• National retail grocery sales totalled over US$963.9 billion (includes
convenience store sales of US$306.6 billion, excluding gas) in 2007 and are
projected to grow nearly 18% from 2007 to reach just over US$1.1 trillion by
2012.
• Supermarkets accounted for roughly 43% of the American retail grocery
market, followed by convenience stores (32%), mass merchandisers (15%),
warehouse clubs (10%), and dollar stores (1%) in 2007.
• Mass merchandisers and specialty grocers (i.e. retailers specializing in the
sale of one main food or beverage category, such as a bakery, butcher, fish
and seafood store, greengrocer, wine store, etc.) are the fastest-growing
channels in the American retail grocery market, and are expected to see 33%
and 19% growth, respectively, between 2007 and 2012.
• The Southwest region was home to 4,114 retail grocery outlets as of July
2008, roughly 2% of the nation’s total.
• Wal-Mart Supercenter accounts for about 38% of the region’s retail grocery
sales, followed by H-E-B (15%) and Kroger/Dillon (10%). Albertsons, Wal-
Mart Neighborhood Market and Safeway (under the Safeway, Randall’s and
Tom Thumb banners) each control 3% of retail grocery sales in the Southwest
region. Brookshire Grocery, SuperTarget, Winn-Dixie and Fiesta Mart are
other prominent stores in the region.
• Independent stores make up a significant portion of total retail grocery stores
in the Southwest region, particularly outside of Texas. In 2007, independent
grocers accounted for 47% of stores in Louisiana, 42% in Kansas, 33% in
New Mexico, 31% in Arkansas and 21% in Texas (no data available for
Oklahoma).
• Major growth areas in the retail grocery market include ready-made meals,
particularly healthier offerings, and better-for-you, functional and ethnic food.
Overview of the Southwest Retail Grocery Market 3
• The Southwest region’s GDP totalled nearly US$1.8 trillion in 2007, 13% of
the nation’s total. Texas accounts for 64% of the Southwest region’s GDP.
• The Southwest region saw strong population growth at 9.6% from 2000 to
2007, which was 2.4% above the national growth rate in the United States.
• The Southwest region is home to some of largest food corporations in the
world including Wal-Mart, SYSCO, Tyson Foods and Whole Foods Market.
Southwest Region
The Southwest region offers a sizeable and diversified economy, as well as a large
and growing consumer base to market agri-food products. The region is experiencing
growth at both the high- and low-end of the retail grocery market, with new upscale
market stores, as well as discount food stores targeted at lower- and middle-income
consumers. Although the region’s retail grocery market is large and competitive, it
offers numerous opportunities, particularly for niche and specialty products that
meet consumer demand for convenience, variety and price. Canadian agri-food
exporters should note that even a single niche opportunity in the Southwest region
could be compared in size to a popular market trend in Canada.
The south-western states are extremely diverse, with each state having its own
unique demographic and socio-economic situation. Included in the region is Texas,
which has the second largest state population and GDP in the United States, as well
as the smaller states of Arkansas, Louisiana, Oklahoma, New Mexico and Kansas.
Although Texas offers a very large and lucrative grocery market, the other south-
western states should not be overlooked as they also provide a considerable
population of over 15 million to market products.
As in other parts of the United States, food consumption in the Southwest region is
affected by the aging baby boom generation, time pressures of dual-income
households, and growing demand for healthy and portable meal solutions. Major
trends currently impacting the retail grocery market include healthy ready-made
meals, portion-controlled snacks, and better-for-you, functional and ethnic food. As
the Southwest region is less affluent than some other parts of the United States,
with per capita income and median household incomes below the national average,
demand for discount food is strong. Dollar stores and other discount options are
popular in the region. A number of large grocery retailers offer discount options and
expansion in this area is predicted. For instance, the discount food store, Aldi, plans
to enter the Texas market in 2009. The region is also quite ethnically diverse, with
sizeable Hispanic, African American and Asian American populations stimulating
regional demand for ethnic food products.
The region is home to some of the largest players in the food sector, providing
enhanced opportunities for food suppliers. The headquarters of Wal-Mart (the largest
retailer of groceries in the United States) and Tyson Foods (the world's largest meat
processor) are located in Arkansas, while SYSCO (the largest foodservice distributor
in United States) and Whole Foods Market (the world's largest retailer of organic and
natural foods) have headquarters in Texas. These large food corporations have a
significant impact on the food industry regionally, nationally and internationally. For
example, Tyson Foods is the world’s largest processor and marketer of chicken, beef,
and pork and the second-largest food company in the FORTUNE 500. A leader in the
retail and foodservice markets, Tyson Foods’ clients include a number of large fast
Overview of the Southwest Retail Grocery Market 4
food chains (e.g. KFC, Taco Bell, McDonald's, Burger King and Wendy's) and grocery
retailers (e.g. Wal-Mart, Kroger and Costco). The presence of top-tier food
companies such as Tyson Foods and Wal-Mart stimulate demand for food products in
the region.
Overall, the Southwest region is experiencing strong population increases, with a
9.6% population growth rate from 2000 to 2007, which was 2.4% above the national
rate. However, this population growth is mostly in Texas, which grew an impressive
14.6% during this period, adding more than 3 million residents. High birth and
immigration rates are helping fuel population growth in the region. Nevertheless,
Louisiana has seen significant population decreases in the last few years due to
Hurricane Katrina, which devastated much of New Orleans and coastal Louisiana in
August 2005. From 2000 to 2006, New Orleans experienced the largest population
decrease of any metropolitan area in the United States, decreasing 25% to 990,478
in 2006 from 1,316,512 in 2000. Fortunately, signs of recovery are evident with
New Orleans having experienced 4% population growth from 2006 to 2007.
The Southwest region is home to a number of the largest American cities, including
Dallas, TX (4th largest metropolitan area in United States); Houston, TX (6th largest
metropolitan area in United States); San Antonio, TX (28th largest metropolitan area
in United States); Kansas City, MO-KS (29th largest metropolitan area in United
States); Austin, TX (37th largest metropolitan area in United States); Oklahoma City,
OK (44th largest metropolitan area in United States); and New Orleans, LA (51st
largest metropolitan area in United States). The region is also home to a number of
the fastest-growing American cities. McKinney City, TX and Denton City, TX ranked
among the top 20 American cities with the largest population increases from 2000 to
2006. In fact, McKinney City was the fastest growing city in the United States
having grown 98% during this period, while Denton City grew 33%. Other
burgeoning areas included Brownsville City, TX; Laredo City, TX; Grand Prairie City,
TX; Forth Worth City, TX; and Olathe City, KS; which all saw population growth
greater than 20% and ranked within the top 10% of the nation’s 258 incorporated
cities.
The Southwest region is an important export market for Canadian agri-food
companies. The Southwest region purchased nearly $848 million or 3% of all
Canadian agri-food exports to the United States in 2007; Texas accounted for 58%
of this total. Top exports to the region included prepared or preserved potatoes at
$108.9 million or 13% of the total, boneless bovine cuts worth $99.4 million or 12%
of exports, and wheat or meslin totalling $45.4 million or 5% of agri-food exports.
Communion wafers and whiskies accounted for $40.1 million and $34.2 million or 5%
and 4% of exports, respectively. The Southwest region’s proximity to Mexico, as
well as strong regional agricultural and food production capacity means that
Canadian agri-food exporters face intense competition in the region.
The following table outlines the Southwest states’ respective importance to Canadian
agri-food exporters. Demographic, retail grocery market and trade profiles are also
highlighted.
Southwest Region - Importance to Canadian Agri-Food Exporters
State/Region Population Population Total Retail Grocery Canadian Agri-food
(2007) as Sales (2008) Agri-food Exports as
Percentage Exports to Percentage
of Region State of Region
Arkansas 2.8 million 7.2% US$5.1 billion* $90.7 million 10.7%
Overview of the Southwest Retail Grocery Market 5
Kansas 2.8 million 7.0% US$5.0 billion* $95.5 million 11.2%
Louisiana 4.3 million 10.9% US$9.5 billion $104.2 million 12.3%
New Mexico 2.0 million 5.0% US$3.7 billion $6.8 million 0.8%
Oklahoma 3.6 million 9.2% US$6.2 billion* $55.9 million 6.6%
Texas 23.9 million 60.7% US$48.4 billion $495.9 million 58.4%
Southwest 39.4 million 100% US$77.9 billion** $849.0 million 100%
United States 301.6 million US$657.3 billion*** $17.3 billion
Sources: Population Division, U.S. Census Bureau; The Shelby Report of the Southwest, July 2008,
December 2007, Shelby Report of the Southeast, July 2008; Canadian Agri-food Trade System,
Progressive Grocer April, 2008; * 2006 data; ** Estimate based on 2006 and 2008 data; *** does not
include convenience store sales of US$306.6 billion (excluding gas)
The Southwest region’s 4,114 retail grocery outlets generated an estimated US$78
billion in sales in 2008, and accounted for approximately 12% of the national retail
grocery sales total. The country’s largest retail grocer players, Wal-Mart Stores,
Kroger Co., Safeway, Inc., and Supervalu, Inc., all have a presence in the Southwest
region with their many retail banners. The top three retailers in the Southwest
region are Wal-Mart Supercenter, H-E-B and Kroger/Dillon; however, key players
and market shares vary from city to city and state to state. Although Wal-Mart
controls the largest market share of grocery sales in the Southwest, in the last
couple of years Wal-Mart has seen a slowdown in growth in parts of the Southwest,
with growth being checked by increased competition, as well as unfavourable
economic and market conditions. Limited-assortment super warehouses and fresh
format stores offer competition to Wal-Mart and continue to gain a market share.
Arkansas
• Arkansas’ 406 retail grocery outlets (i.e. the fourth-largest number of grocery
stores in the Southwest region) made up a US$5.1 billion market in 2006.
• Top five retailers: Wal-Mart Supercenter (65 stores with a 56% market
share), Kroger (37 stores with a 11% market share), Harps (43 stores with a
5% market share), Wal-Mart Neighborhood Market (6 stores with a 4%
market share), and Supermarket Inv. (25 stores with a 2% market share).
• As of June 2008, more than 27% of Arkansas’ retail grocery market share
was supplied by wholesalers. The remaining value was accounted for by large
retailers that are self-supplied, such as Wal-Mart.
• Little Rock, AR is home to 19% of Arkansas’ retail grocery outlets with 76
stores.
• Wal-Mart (the largest retailer of groceries in the United States) and Tyson
Foods (the world's largest meat producer) have headquarters in Arkansas.
• 2007 population: 2.8 million, ranking the state 33rd in the nation.
• 2007 GDP: US$95 billion, positioning Arkansas 37th in the country.
• 2006 per capita income: US$19,758
• 2006 median household income: US$36,599, ranking Arkansas 49th
nationwide.
• Canada exported $90.7 million of agri-food products to Arkansas in 2007. Top
exports included boneless bovine cuts totalling $14.3 million or 16% of the
total, liqueurs and cordials at $12.8 million or 14% of total exports, and
prepared or preserved potatoes worth $8 million or 9% of exports. Waffles
and wafers, and communion wafers accounted for $7.5 million and $5.5
million or 8% and 6% of exports, respectively.
Arkansas’ Top 10 Retail Grocers, July 2008
Retailer Number Market
of Stores Share
1. Wal-Mart Supercenter 65 56.3%
Overview of the Southwest Retail Grocery Market 6
2. Kroger 37 11.3%
3. Harps 43 5.4%
4. Wal-Mart Neighborhood Market 6 3.8%
5. Supermarket Inv. 25 2.3%
6. Brookshire Grocery 14 2.1%
7. Town and Country Grocers 12 1.4%
8. Food Giant/Warren 18 1.3%
9. CV Foodliner 13 1.1%
10. Hays Food Town 10 1.0%
All Others 163 14.0%
Total 406 100%
Source: The Shelby Report of the Southwest, July 2008, p.57
Kansas
• Kansas’ 370 retail grocery outlets (i.e. the fifth-largest number of grocery
stores in the Southwest region) made up a US$5 billion market in 2006.
• Top five retailers: Wal-Mart Supercenter (47 stores with a 38% market
share), Dillon (72 stores with a 26% market share), Ball’s (19 stores with a
6% market share), Hy-Vee (12 stores with a 5% market share), and
SuperTarget (6 stores with a 3% market share).
• As of June 2008, more than 26% of Kansas’ retail grocery market share was
supplied by wholesalers. The remaining value was accounted for by large
retailers that are self-supplied, such as Wal-Mart and Hy-Vee, etc.
• Kansas City, MO-KS is home to 240 retail grocery stores (Note: Kansas City
metropolitan area is located on the border of Missouri and Kansas state).
• 2007 population: 2.8 million, ranking the state 34th in the nation
• 2007 GDP: US$117 billion, positioning Kansas 35th in the country.
• 2006 per capita income: US$23,818
• 2006 median household income: US$45,478, ranking Kansas 29th nationwide.
• Canada exported $95.5 million of agri-food products to Kansas in 2007. Top
exports included boneless bovine cuts totalling $17.3 million or 18% of the
total, swine cuts at $10.7 million or 11% of total exports, and live bovine
(except pure-bred breeding) at $7.9 million or 11% of exports. Margarine and
and honey accounted for $6 million and $5.6 million or 6% of exports each,
respectively.
Kansas’ Top 10 Retail Grocers, July 2008
Retailer Number Market
of Stores Share
1. Wal-Mart Supercenter 47 37.6%
2. Dillon 72 25.6%
3. Ball’s 19 6.3%
4. Hy-Vee 12 5.0%
5. SuperTarget 6 2.9%
6. Price Chopper / Paola 5 1.5%
7. Cosentino’s Food Marts 5 1.5%
8. Wal-Mart Neighborhood Market 3 1.3%
9. McKeever Enterprises 4 1.2%
10. Military 3 1.2%
All Others 194 15.9%
Total 370 100%
Source: The Shelby Report of the Southwest, July 2008, p.57
Overview of the Southwest Retail Grocery Market 7
Louisiana
• Louisiana’s 564 retail grocery outlets (i.e. the second-largest number of
grocery stores in the Southwest region) made up a US$9.5 billion market in
2008.
• Top five retailers: Wal-Mart Supercenter (75 stores with a 46% market
share), Winn-Dixie (52 stores with a 12% market share), Brookshire Grocery
(40 stores with a 7% market share), Rouse Enterprises (30 stores with a 6%
market share), and Albertsons (18 stores with a 4% market share).
• As of July 2008, nearly 29% of Louisiana’s retail grocery market share was
supplied by wholesalers. The remaining value was accounted for by large
retailers that are self-supplied, such as Wal-Mart and Albertsons, etc.
• New Orleans is home to 21% of Louisiana’s retail grocery outlets with 119
stores.
• 2007 population: 4.3 million, ranking the state 25th in the nation.
• 2007 GDP: US$216 billion, positioning Louisiana 27th in the country and 2nd in
the Southwest region.
• 2006 per capita income: US$20,367
• 2006 median household income: US$39,337, ranking Louisiana 46th
nationwide.
• Canada exported $104.2 million of agri-food products to Louisiana in 2007.
Top exports included wheat totalling $43.7 million or 42% of the total, crude
canola oil at $21.8 million or 21% of total exports, and refined canola oil
worth $9.2 million or 9% of exports. Whiskies and prepared or preserved
potatoes accounted for $7.5 million and $6.3 million or 7% and 6% of
exports, respectively.
Louisiana’s Top 10 Retail Grocers, July 2008
Retailer Number Market
of Stores Share
1. Wal-Mart Supercenter 75 46.1%
2. Winn-Dixie 52 11.5%
3. Brookshire Grocery 40 6.7%
4. Rouse Enterprises 30 5.5%
5. Albertsons 18 4.2%
6. Kroger 10 2.8%
7. SuperTarget 4 1.5%
8. Wal-Mart Neighborhood Market 4 1.4%
9. M&E Food Mart 14 0.9%
10. Southeast Foods 10 0.7%
All Others 307 18.6%
Total 564 100%
Source: The Shelby Report of the Southwest, July 2008, p.58
New Mexico
• New Mexico’s 206 retail grocery outlets (i.e. the smallest number of grocery
stores in the Southwest region) made up a US$3.7 billion market in 2008.
• Top five retailers: Wal-Mart Supercenter (30 stores with a 45% market
share), Albertsons (30 stores with a 15% market share), Smith’s (26 stores
with a 15% market share), Lowes Pay n’ Save (18 stores with a 4% market
share), and JHB Inc. (10 stores with a 2% market share).
• As of June 2008, nearly 20% of New Mexico’s retail grocery market share was
supplied by wholesalers. The remaining value was accounted for by large
retailers that are self-supplied, such as Wal-Mart, Albertsons and Safeway,
etc.
Overview of the Southwest Retail Grocery Market 8
• Albuquerque, New Mexico is home to 38% of New Mexico’s retail grocery
outlets with 78 stores.
• 2007 population: 2 million, ranking the state 37th in the nation.
• 44% of the New Mexican population was Hispanic in 2007, ranking the state
1st in the nation.
• 2007 GDP: US$76 billion, positioning New Mexico 41th in the country.
• 2006 per capita income: US$20,913
• 2006 median household income: US$40,629, ranking New Mexico 42nd
nationwide.
• Canada exported $6.8 million of agri-food products to New Mexico in 2007.
Top exports included whiskies totalling $1.6 million or 23% of the total,
waffles and wafers at $1.5 million or 22% of total exports, and rape-seed oil-
cake worth $992,000 or 15% of exports. Bovine cuts (bone-in), and oats
accounted for $325,000 and $286,000 or 5% and 4% of exports,
respectively.
New Mexico’s Top 10 Retail Grocers, July 2008
Retailer Number Market
of Stores Share
1. Wal-Mart Supercenter 30 44.9%
2. Albertsons 30 15.2%
3. Smith’s 26 14.8%
4. Lowes Pay n’ Save 18 3.9%
5. JHB Inc. 10 2.0%
6. Safeway 4 1.9%
7. Military 4 1.7%
8. Wal-Mart Neighborhood Market 2 1.3%
9. DPI Southwest 5 1.0%
10. Whole Foods 2 0.9%
All Others 75 12.5%
Total 206 100%
Source: The Shelby Report of the Southwest, July 2008, p.58
Oklahoma
• Oklahoma’s 426 retail grocery outlets (i.e. the third-largest number of
grocery stores in the Southwest region) made up a US$6.2 billion market in
2006.
• Top five retailers: Wal-Mart Supercenter (69 stores with a 51% market
share), Wal-Mart Neighborhood Market (16 stores with a 8% market share),
Homeland Stores (51 stores with a 7% market share), Reasor’s (15 stores
with a 5% market share), and Crest Discount Foods (6 stores with a 4%
market share).
• As of June 2008, nearly 40% of Oklahoma’s retail grocery market share was
supplied by wholesalers. The remaining value was accounted for by large
retailers that are self-supplied, such as Wal-Mart.
• Oklahoma City, OK is home to 29% of Oklahoma’s retail grocery outlets with
125 stores.
• 2007 population: 3.6 million, ranking the state 29th in the nation.
• 2007 GDP: US$139 billion, positioning Oklahoma 32nd in the country.
• 2006 per capita income: US$20,935
• 2006 median household income: US$38,770, ranking Oklahoma 48th
nationwide.
• Canada exported $55.9 million of agri-food products to Oklahoma in 2007.
Top exports included boneless bovine cuts totalling $12.8 million or 23% of
the total, food preparations at $5.1 million or 9% of total exports, and
Overview of the Southwest Retail Grocery Market 9
communion wafers at $3.2 million or 6% of total exports. Animal products not
for human consumption, and swine cuts accounted for $2.9 million and $2.3
million or 5% and 4% of exports, respectively.
Oklahoma’s Top 10 Retail Grocers, July 2008
Retailer Number Market
of Stores Share
1. Wal-Mart Supercenter 69 50.7%
2. Wal-Mart Neighborhood Market 16 7.5%
3. Homeland Stores 51 6.9%
4. Reasor’s Inc. 15 4.6%
5. Crest Discount Foods 6 4.0%
6. Warehouse Market 16 2.7%
7. United Supermarkets / OK 26 2.2%
8. RPCS Inc. 9 2.1%
9. SuperTarget 4 1.9%
10. Buy For Less 10 1.8%
All Others 204 15.8%
Total 426 100%
Source: The Shelby Report of the Southwest, July 2008, p.58
Texas
• Texas’ 2,142 retail grocery outlets (i.e. the largest number of grocery stores
in the Southwest region) made up a US$48.4 billion market in 2008.
• Top five retailers: Wal-Mart Supercenter (292 stores with a 33% market
share), H-E-B (278 stores with a 23% market share), Kroger (200 stores with
a 11% market share), Albertsons (95 stores with a 4% market share), and
Tom Thumb Food (62 stores with a 3% market share).
• As of June 2008, more than 17% of Texas’ retail grocery market share was
supplied by wholesalers. The remaining value was accounted for by large
retailers that are self-supplied, such as Wal-Mart and Albertsons, etc.
• Dallas-Ft.Worth and Houston, Texas are home to 50% of Texas’ retail grocery
outlets with 561 and 472 stores respectively.
• SYSCO (the largest foodservice distributor in United States) and Whole Foods
Market (the world's largest retailer of organic and natural foods) have
headquarters in Texas.
• 2007 population: 23.9 million, ranking the state 2nd in the nation. Population
growth is 14.6% in Texas, which is the 6th highest growth rate in the United
States.
• 36% of the Texan population was Hispanic in 2007, ranking the state 3rd in
the nation.
• 2007 GDP: US$1,142 billion, positioning Texas 2nd in the United States (after
California).
• 2006 per capita income: US$22,501
• 2006 median household income: US$44,922, ranking Texas 32nd nationwide.
• Canada exported $495.9 million of agri-food products to Texas in 2007. Top
exports included prepared or preserved potatoes totalling $91.3 million or
18% of the total, boneless bovine cuts at $54.8 million or 11% of total
exports, and communion wafers worth $23.8 million or 5% of exports.
Whiskies, and prepared foods obtained by the swelling or roasting of cereal or
cereal products accounted for $19.8 million and $13.7 million or 4% and 3%
of exports, respectively.
Texas’ Top 10 Retail Grocers, July 2008
Retailer Number Market
Overview of the Southwest Retail Grocery Market 10
of Stores Share
1. Wal-Mart Supercenter 292 33.1%
2. H-E-B 278 23.4%
3. Kroger 200 11.2%
4. Albertsons 95 3.6%
5. Tom Thumb Food 62 2.7%
6. SuperTarget 43 2.6%
7. Brookshire Grocery 97 2.4%
8. Wal-Mart Neighborhood Market 34 2.2%
9. Fiesta Mart 49 2.0%
10. Randall’s 50 2.0%
All Others 942 14.8%
Total 2142 100%
Source: The Shelby Report of the Southwest, July 2008, p.58
Retail Grocery Market Overview
Supermarkets
Supermarkets are the largest segment of the retail grocery market and are
dominated by chains. American consumers prefer these outlets due to their wide
selection, convenient locations and longer hours of operation (Euromonitor, 2008).
In fact, Americans believe that supermarkets offer the best selection of products
they need to maintain their health (FMI, 2008). Faced with increased competition
from large mass merchandisers (e.g. Wal-Mart Supercenter and SuperTarget which
offer one-stop shopping solutions and everyday low prices for a broad selection of
groceries) and other major segment leaders, supermarkets continue to remodel
stores and enhance product offerings to improve consumers’ shopping experiences.
While supermarkets had heavily focused on expanding their non-food offerings, in
order to compete with mass merchandisers, over the past several years, this trend
now seems to be reversing as food products reclaim lost shelf space in many outlets.
• Supermarkets dominate the United States retail grocery sector; sales reached
US$411.8 billion in 2007 comprising 43% of the market, a 15% increase over
2004.
• Chain supermarkets makeup 94% of total supermarket sales, while
independent grocers account for the remaining 6%.
• Supermarkets are staying competitive by offering private label lines. Recent
industry estimates suggest that private label products offer 10% to 15%
higher margins than those of national brands, and that store brands can
account for 15% to 25% of total store sales (Euromonitor, 2008).
• Supermarket gas stations have also helped retailers generate more store
traffic. It is estimated that more than half of American consumers purchase
gasoline at supermarket gas bars (Food Marketing Institute, 2008).
• Kroger is the largest supermarket chain in the United States with an
approximate 18% market share, followed by Safeway (11%), Albertsons
(8%), Publix (7%) and Food Lion (6%) (Euromonitor, 2008).
• The United States was home to 45,581 supermarkets in 2007.
Convenience Stores
Having traditionally relied on tobacco and gasoline sales as primary traffic-builders,
convenience stores have transformed themselves into “grab-and-go” outlets to meet
consumer demand for prepared convenience goods. With supermarkets, mass
Overview of the Southwest Retail Grocery Market 11
merchandisers and warehouse clubs increasingly selling gasoline, and consumers
turning to lower-priced competitors for tobacco products, the convenience store
segment faces considerable competition. To overcome this obstacle, convenience
stores are remodelling and tailoring their product offering to meet local demand.
Many outlets now offer a variety of healthy and portable prepared food. Refrigerated
coolers that house perishable food are also being added to drive sales.
One large convenience store chain in the Southwest region that is remodelling to
remain competitive and better meet consumer needs is Valero Corner Stores. Valero
Corner Stores unveiled its first store under its new Road Runner banner in late 2007
in San Antonio, Texas. The store offers its Fresh Choices label, which includes fresh
foods, snacks, soft drinks, spring water, vitamin water and teas. These new
products aim to meet demand for convenient, fresh and ready-made products.
There are over 1,000 Valero Corner Stores across the United States, all of which will
be remodelled and refurbished and take on the Road Runner name.
An additional factor affecting convenience store sales is the increased availability of
pay-at-the-pump options for purchasing gasoline. Gas is the main draw for
consumers at many convenience stores, and with the option of paying at the pump
the need to go into a convenience store is lessening, and therefore drastically cutting
into traditional impulse buys. A number of chains continue to drive in-store customer
traffic by offering snack or meal promotions, as well as by incorporating popular
foodservice chain “express” kiosks (e.g. Jack in the Box, Dunkin Donuts) or
entertainment.
• The country’s 146,294 convenience stores generated US$308.8 billion in sales
(not including gas) in 2007.
• Ten per cent of Americans purchase a food product from a convenience store
every two weeks.
• Approximately 80% of convenience stores offer food prepared on-site.
• Sandwiches, pizza, chicken, hamburgers and Mexican food are the most
popular menu options at foodservice kiosks in convenience stores.
• 7-Eleven is the largest convenience store chain in the United States with an
approximate 4% market share, followed by Alimentation Couche-Tard’s Circle
K banner (2%), Shell Oil Co’s Shell Shop banner (1.4%), BP America Inc’s
Amoco FoodMart banner (1.3%) and Marathon Oil Co’s Speedway
SuperAmerica banner (1.3%) (Euromonitor, 2008).
• Texas is home to the largest concentration of convenience stores nationwide,
i.e. nearly 10,300 outlets or 7% of the country’s total.
• Although gas station convenience stores dominate the market, nearly 84% of
the segment’s market share was accounted for by other convenience store
retailers, the majority of which are non-chain stores (Euromonitor, 2008).
• The top 10 selling convenience store products (excluding fuel) include
cigarettes, non-alcoholic bottled beverages, beer, foodservice products, other
tobacco, candy, salty snacks, general merchandise, milk and packaged sweet
snacks.
Mass Merchandisers
While retail grocery market leaders are experimenting with new smaller-format
stores, mass merchandiser-type outlets remain extremely popular with consumers as
many offer one-stop shopping solutions. Mass merchandisers continue to challenge
the supermarket segment for grocery sales by expanding their food selections;
offering competitive, everyday low-prices; and opening new outlets. In fact, many of
Overview of the Southwest Retail Grocery Market 12
such retailers are increasingly converting into supercenters that offer a wide
assortment of grocery items and an in-store pharmacy, along with typical mass
merchandiser products. With their key competitive advantage being aggressive
pricing, and consumers increasingly looking to complete all of their shopping in one
location, mass merchandisers’ market share was valued at 15% or US$141.7 billion
in 2007.
• The country’s 3,038 mass merchandiser outlets generated US$141.7 billion in
sales in 2007.
• Approximately 31% of a mass merchandiser’s outlet is allocated to grocery
items (Euromonitor, 2008).
• Grocery sales remain an important part of mass merchandisers’ business;
major retailers, such as Wal-Mart Supercenter and SuperTarget continue to
improve their private label offerings to increase profit margins (Euromonitor,
2008).
• Wal-Mart Supercenter dominates the segment with an approximate 78%
market share, followed by Meijer (6%), SuperTarget (6%), Ahold USA Inc’s
Super Stop & Shop banner (5%), and Kroger Co’s Fred Meyer Stores banner
(2%) (Euromonitor, 2008).
Warehouse Clubs
Warehouse clubs are an important player in the United States retail grocery market
as they offer high quality food products and regular merchandise in large package
formats at low prices. This segment is a strong competitor for mass merchandisers
and supermarkets that offer club-pack sizes. In fact, a number of supermarket
retailers have expanded their offerings to include value or club-pack aisles to attract
shoppers that regularly purchase multipacks. Warehouse clubs are also well known
for their “treasure hunt” appeal; shoppers must search aisles for limited-time
bargains that are not advertised. Although such outlets have a more limited and
variable selection of products, they offer competitive pricing for multipacks which
appeal to high-volume buyers.
In order to remain competitive, many warehouse clubs have expanded their product
offerings in recent years, particularly fresh food selections and store brand product
lines. Costco, the segment leader, has especially benefited from such developments
and positioning itself as an upscale discounter in recent years. The retailer offers a
wide range of high quality merchandise, fresh food and a large private label line,
Kirkland. Costco also marks-up products no more than 14%, in comparison to the
25% mark-up standard in the supermarket category, which gives the retailer a
competitive edge (Euromonitor, 2008).
Sam’s Club, the second-largest wholesaler in sales terms, but first in the number of
outlets, is currently expanding its “affordable luxuries” offerings, with focus on
gourmet food and wine (Euromonitor, 2008). As a Wal-Mart subsidiary, Sam’s Club
benefits from large economies of scale, a strong distribution network and real estate
expertise; however, many outlets tend to be situated in rural areas, whereas, Costco
targets more urban consumers.
• The country’s 1,152 warehouse club outlets generated US$101.5 billion in
sales in 2007.
• Costco, Sam’s Club and BJ’s Wholesale Club (which only operates in the
eastern United States) dominate the segment, having accounted for roughly
94% of national wholesale club sales in 2007 (Euromonitor, 2008).
Overview of the Southwest Retail Grocery Market 13
• More than half of Americans shop at warehouse clubs.
• Grocery sales account for approximately one-third of warehouse club sales;
top selling goods include dairy, meat, produce and ready-made meals.
• The Southwest region’s major warehouse club retailers are Costco and Sam’s
Club with 20 and 117 locations in 2007, respectively.
Dollar Stores
Dollar store retailers have revitalized themselves over the past decade with better
quality merchandise and increased product variety, resulting in large channel growth.
More recently, there has been a shift toward adding food aisles and convenience
goods to increase sales. Many retailers are adding refrigerated and/or frozen food
sections for fresh produce and frozen, ready-meals, positioning dollar stores as one
of the main threats to traditional grocery retailers. Dollar General, for example,
recently launched its Super Dollar General concept in addition to its Dollar General
Market banner, both of which sell a greater selection of grocery items and are similar
to Wal-Mart Supercenters, but on a much smaller scale. Large national retailers from
other channels, such as Wal-Mart, Target, Kroger, Albertsons and Walgreens, are
also trying to benefit from dollar store sales by experimenting with dollar store aisles
in their stores.
However, current economic conditions in the United States along with rising
commodity prices are making it difficult for the few remaining true “dollar” stores to
maintain their traditional pricing strategies. 99 Cents Only, for example, had
experimented with selling reduced quantities of packaged food, such as six-packs of
eggs and smaller milk cartons, and stopped stocking products like peanut butter and
cooking oil on an regular basis to try and cope with rising food prices. After recently
reporting its second consecutive quarterly loss, the industry giant implemented its
first ever pricing strategy change in September 2008, increasing its top price to
99.99 cents — nearly a one cent increase per item. 99 Cents Only also announced
that it is closing its 48 stores in Texas to better focus on core markets, California,
Arizona and Nevada, which are home to 229 outlets that have generated roughly
90% of the company’s sales to date.
As retailers such as Target and Costco make bargain hunting trendy, dollar stores
have increasingly become frequented by upper-income households along with their
main consumer segment of low- to middle-income families. In fact, store growth
within the dollar store channel is unparalleled by any other retailer. Top dollar store
chains, including Dollar General, Family Dollar, Dollar Tree, Fred's and 99 Cents
Only, have added more than 5,900 new outlets since 2001. For more detailed
information on this retail segment, consult the Overview of the Retail Dollar Store
Market in the United States report on the Agri-Food Trade Service Web site at
http://www.ats.agr.gc.ca/us/4356_e.htm.
• The dollar store segment was estimated at US$27.5 billion in 2005, a 9%
increase over 2004.
• As of 2006, over 19,000 dollar stores were operational, a large increase from
the 5,458 that existed in 1996. In 2006 alone, the dollar store channel
increased its total store count by 1,100. More than 8,000 new outlets are
expected to open by 2010.
• While there are over 800 dollar store companies in the United States, the top
five dollar store chains, Dollar General, Family Dollar, Dollar Tree, Fred's and
99 Cents Only, saw combined sales of US$22.4 billion in 2006 and
represented a little more than two-thirds of total dollar store channel sales.
Overview of the Southwest Retail Grocery Market 14
• The Southwest region’s major dollar store retailers include Dollar General
(1,976 locations), Family Dollar (1,370 outlets), Fred’s (134 outlets), and
Dollar Tree (over 50 stores).
• In 2006, 65% of American households shopped at dollar stores, up from 55%
in 2000.
• Candy and snacks ranked in the top 10 selling products category at dollar
stores in 2004, i.e. first and seventh place, respectively.
• Annual household trips to dollar stores grew to 12 outings in mid-2006 from
an average of 10 in 2000.
• The average basket size of a trip to the dollar store grew to US$13 in mid-
2006 from US$11 in 2000.
Store Redesigns
A number of significant trends are currently impacting the United States retail
grocery market. Perhaps one of the largest developments is the vast number of
retailers across all grocery segments that are revamping their outlets and businesses
to provide better product selections and store designs, as well as “greener”
operations. Market leaders are developing energy efficient buildings, and adopting
greener business practices from the production process through to distribution and at
the retail store level. For a detailed look at how the green trend is impacting the
retail grocery market, consult Going Green: The Future of the Retail Food Industry
report on the Agri-Food Trade Service Web site at
http://www.ats.agr.gc.ca/us/4351_e.htm. Retailers are also enhancing store layouts
and merchandising to make it easier and more inviting for consumers to shop at
their outlets, as well as boost sales.
The American grocery retailer Piggly Wiggly, for example, recently launched its first
new concept store tailored to how consumers intuitively shop. Shoppers can now
find all fresh, frozen and canned fruit and vegetables in one section; bread, cereal,
milk, peanut butter and jam all within one location; and cross-merchandising
throughout the store that offers consumers quick, complete meal solutions (e.g. a
display with sausages, buns, fresh corn and beer). The store also features a
convenient meal assembly centre (i.e. Dream Dinners, a meal preparation outfit that
helps consumers make up to four weeks of freezer- and oven-ready dinners at a
time); Starbucks outlet; a warm, “home-like” feel with its hardwood flooring, soft
lighting and open floor plan; and environmentally-friendly features. As Piggly Wiggly
has 57 stores in Texas, Louisiana, Oklahoma and Arkansas, this intuitive shopping
trend could have a significant impact in the Southwest.
Safeway has also been converting its locations into Lifestyle concept stores over the
past several years. Having opened its 1,000th Lifestyle store in November 2007,
Safeway’s new formats represent roughly 60% of the retailer’s store count and offer
an array of high quality prepared food, organic and natural products and expanded
grocery selections tailored to local tastes. Depending on the local market, Lifestyle
stores feature a gelato station, sushi bar, fresh nut counter, wine selection with over
2,000 varieties, and even shopping carts with drink holders for those outlets that
house a Starbucks kiosk.
Many other grocery retailers in the Southwest are also opening new and improved
versions of their stores. For example, United Supermarkets, which has 47 stores in
Texas, has introduced three store formats: United Supermarkets, Market Street and
Amigos United. While the United Supermarkets banner is the traditional format,
Market Street is more upscale and gourmet, with more specialty and whole health
Overview of the Southwest Retail Grocery Market 15
products. Meanwhile, Amigos United, which was unveiled in 2007, is an
international-format banner which focuses specifically on the large Hispanic
population in Texas. Similar trends have been seen at the grocery chain H-E-B,
which also has multiple store formats including H-E-B Plus, Central Market and Mi
Tienda. H-E-B Plus is a larger, supercenter-type store that includes more non-food
items than a traditional H-E-B; and the Central Market format is gourmet and
upscale, while Mi Tienda targets Hispanic consumers.
Smaller-Format Convenience Segment
One of the most recent trends to greatly impact the American retail grocery market
is the development of smaller-format stores that focus on high quality, fresh and
convenient food. As mass merchandisers and supermarkets are increasingly seen as
impractical for quick shopping trips, a number of retailers are beginning to
experiment with new smaller-format outlets to capitalize on the consumer trend for
healthier and easier meal solutions in a convenient shopping format. Although new to
the American market, this concept has seen great success in the United Kingdom,
where market leader Tesco now operates some 700 of such convenience stores, and
continues to open an additional 50 outlets annually (Business Monitor International,
2008).
Tesco rolled-out its Fresh & Easy Neighborhood Market banner in the United States in
November 2007, and has since opened 62 outlets across Arizona, California and
Nevada. The banner offers healthy and convenient products at affordable prices. An
additional 140 store openings are projected from July 2008 to February 2009, for an
estimated 800 outlets by 2012. While the Fresh & Easy Neighborhood Markets have
yet to reach the Southwest region of the United States, they will likely have an
influence on the retail grocery market in the region in the future.
Wal-Mart is also launching a convenience store-sized market concept. Industry
experts have suggested that the new Marketside banner is in response to Tesco’s
rollout of Fresh & Easy Neighborhood Markets. Although the first Marketside stores
will not be located in the Southwest region, these new stores will likely have a
significant impact on the American grocery industry in general, as well as the
convenience store segment’s competitive landscape, due to Wal-Mart’s economies of
scale and real estate expertise in the United States.
Supermarket giant, Safeway, is also testing the convenience market by launching
the Market by Vons banner, a smaller-format grocery store, through its Vons
subsidiary. The first “test” outlet was opened in Long Beach, California, in May 2008;
three other outlets are slated to open over the next year. If successful, Safeway
plans to rollout as many as 50 Market by Vons stores annually in neighbourhoods
that cannot support full-size supermarkets. While Safeway’s presence in the
Southwest region is smaller than other parts of the country, this grocery giant has a
strong influence on trends in the grocery industry more generally.
South-western retailers testing smaller grocery formats include United
Supermarkets, which recently opened a 1,300-square-foot “mini” store in Texas
under its Market Street banner. Texas-based Whole Foods Market is also planning to
open a new smaller-format store under its new Whole Foods Market Express banner.
Other retailers testing smaller grocery formats include Bashas’ (with an AJ’s Petite
banner), Giant Eagle (with a Giant Eagle Express banner) and Jewel Osco (with its
Urban Fresh banner).
Overview of the Southwest Retail Grocery Market 16
Although retail grocery giants such as Tesco, Wal-Mart and Safeway see great
potential in developing smaller-format, convenience grocery outlets, some industry
experts caution that the concept may not enjoy the same success as it has in the
United Kingdom. Given that the United States has a smaller population concentration
than the United Kingdom, the convenience format may only be as popular in large
urban areas where consumers are more likely to walk to local retailers for their
groceries (Business Monitor International). Furthermore, most Americans drive to
retail grocers, especially mass merchandisers for one-stop shopping; therefore, the
appeal of smaller, limited-assortment grocers may be limited (Business Monitor
International).
However, given the current economic situation in the United States (which is
projected to last up to 18 months in many areas of the country), Americans are not
driving as far as they once did to make staple purchases. Therefore, the industry’s
return to a certain level of smaller, local grocery formats may fill a key niche. In fact,
large, successful chain stores, such as Costco and Wal-Mart, may even see some of
their price advantage eaten away by a lack of proximity to consumers, particularly in
large urban areas. Early indicators of consumer behaviour have shown that
consumers may not be willing to drive “the extra mile” to shop for groceries at lower
prices, at least for the foreseeable future. Regardless of whether a retailer is
designed for walk-in traffic or not, new, fresh-looking retail formats offering high
quality products “in the neighbourhood” could see an increase in business simply
based on rising fuel costs.
Current Economic Conditions
The current economic downturn in the United States, intensified by higher energy
and food prices, a drop in consumer confidence, and a weakened housing market, is
affecting how shoppers spend their money, particularly on groceries. Industry
analysts have noted that basket sizes are increasing but trips to retail grocers are
declining, as consumers continue to look for bargains and stretch their dollars, a sign
that rising fuel prices are also beginning to take a toll on consumers’ wallets. Current
statistics estimate that consumers will make less than two grocery trips per week in
2008, down from an average 2.2 outings in 2005.
Americans are making subtle but impactful changes to their shopping patterns, such
as opting for white meat instead of red; swapping a restaurant meal for a frozen,
ready-made meal at home; buying private label products in place of premium goods;
using coupons more often; and purchasing “club-pack” sized products. South-
western consumers are increasingly trading down from branded to private label
products, and private label to value brands. Warehouse club retailers, such as
Costco, are also reporting increased sales as consumers turn to more cost-effective
shopping formats. The retailer saw US$6.5 billion in net sales in the five weeks
ending April 6, 2008, an 11% increase over the same period in 2007, as well as
US$41.3 billion in year-to-date net sales ending April 6, 2008, a 12% increase over
2007 totals.
It is also important to note that there was a noticeable push within the American
consumer segment to prepare and eat more meals at home prior to the current
economic downturn. Although some may have viewed this trend as an early indicator
of the coming economic slowdown, it still holds true that Americans are increasingly
Overview of the Southwest Retail Grocery Market 17
preparing meals and dining at home, supported by the idea of maintaining healthier
diets. The economy’s performance has since increased the attractiveness of cooking
and eating at home, on a number of levels, to a greater number of consumers.
Findings from the Food Marketing Institute’s (FMI) U.S. Grocery Shopper Trends
2008 report greatly reflect these market trends. Roughly 71% of Americans are
dining at restaurants less often in favour of cooking at home, and the average
number of family meals eaten at foodservice establishments has dropped to 1.2
times per week, down from 1.3 outings in 2007 and 1.5 occurrences in 2006 (FMI,
2008). Furthermore, 67% of consumers are purchasing less premium food, while
60% report buying more store brand products; not surprisingly, 58% of Americans
state they are consuming more leftovers (FMI).
Trends in the Southwest grocery sector generally parallel national trends; however,
the economy of the Gulf Coast area has been particularly hard-hit, facing additional
challenges following Hurricane Katrina in August 2005. Fortunately, post-hurricane
reconstruction has resulted in billions of dollars being invested in the Gulf Coast area,
which may help minimize negative long-term economic impacts of this disaster.
Nonetheless, consumers in the Gulf Coast area (such as New Orleans, Louisiana)
may be more price-sensitive and more prone to trading down than other parts of the
Southwest region.
The retail grocery segment has quickly responded to economic downturn with a
number of special programs to encourage consumer spending at their outlets. Major
retailers are offering more promotions and discounts, enhancing store
merchandising, and pushing fresh food sales (due to current demand for healthier
products) to boost sales.
The Kroger Co., for example, recently launched a gift card program to help cash-
strapped shoppers manage rising energy and food costs. Available throughout all of
the company’s banners, the promotion allows shoppers to transfer the value of their
economic stimulus cheque onto a Kroger gift card that is topped up with an
additional US$30 to US$120, depending on the value of the government-issued tax
rebate. The program, which ran from May through July 2008, was also open to
consumers who did not receive tax rebates with the purchase of a gift card. Other
south-western retailers to similarly follow suit include all Supervalue banners, Hy-
Vee, Safeway, Wal-Mart and Winn-Dixie. Wal-Mart accounted a net sales increase in
June 2008 of 11.5% to $39.9 billion to the government’s economic stimulus
payments.
Having heavily focused on expanding their private label offerings over the past few
years, many retail grocers are now also well-positioned to offer Americans
considerable savings through their high quality store brand products. Almost 99% of
retailers offer private label food, of which roughly 65% sell multiple tiers (i.e. basic
to premium store brand goods) that target various consumer segments (FMI).
Retail grocers have raised the prices of many food products over the past several
months in an effort to combat the higher prices manufacturers are charging; that is
despite efforts to delay the increases. Inflation reached 5% in June 2008, the highest
rate in the United States since 1991, and has most affected manufacturers who paid
an additional 14% to 70% for bulk, intermediate and consumer-ready products from
April to June 2008. Manufactures have since passed much of these increases on to
retailers. Industry experts continue to debate exactly when the next wave of product
Overview of the Southwest Retail Grocery Market 18
price increases will be introduced at the retail grocery level. Although many grocers
are taking a “wait and see” approach to raising their prices, as they want to be the
last retailer to do so, more price hikes are inevitably on the way.
National Consumption Trends and Opportunities
Healthier Options
As the number of Americans with health problems and/or a general concern for living
a healthy lifestyle grows, dietetic, better-for-you, functional, and high quality
products are projected to see strong growth. Retailers continue to introduce products
with reduced fat, sugar and salt content; added vitamins, herbs or nutraceuticals;
and those that are portion-controlled or cholesterol-, gluten- and lactose-free. With a
number of consumers turning to healthier and more affordable meals at home,
product opportunities will continue to grow for manufacturers. In fact, 91% of
Americans reporting that they eat healthier at home in comparison to dining out
(FMI). Therefore, combined with burgeoning demand for convenience products, this
trend should create more market opportunities for healthier ready-made meals (e.g.
fresh, better-for-you, functional and premium prepared meals). This trend is being
witnessed in a number of grocery retailers in the Southwest, for instance, Kroger Co.
and Rouses are two large chains that are expanding their food offerings to include
more healthy and organic products.
Whole Foods Market, based in Austin, Texas, is another south-western retail grocery
chain that is capitalizing on this health trend. Whole Foods Market is the largest
retailer of natural and organic foods worldwide, with over 270 stores in North
America and the United Kingdom, including 26 stores in the Southwest region (14
stores in Texas, 5 stores in New Mexico, 3 stores in Louisiana, 2 stores in Kansas, 1
store in Oklahoma and 1 store in Arkansas). This grocery retailer specializes in high-
quality natural food products, featuring many items that are free of artificial
preservatives, colors, flavours, sweeteners, and hydrogenated fats. Many stores also
offer prepared meals, catering services and cooking classes. Despite being
somewhat specialized, Whole Foods Market controls a significant market share in
Texas (15th largest grocery retailer), Louisiana (12th largest grocery retailer) and
New Mexico (10th largest grocery retailer).
Larger-Sized Formats
The trend toward healthy eating in the United States is significant, but it fails to
offset the traditional perceived value and popularity of products promoted with larger
product packaging and larger product portions. As much as healthy eating is a trend
amongst the average consumer, the effort to eat healthier could easily be described
as casual, with healthy eating choices being incorporated into less than healthy diets.
While dieting consumers are huge targets, this is not a growing segment of the
population and in fact; the percentage of adults on a diet in the United States has
decreased significantly since 1990. A wide range of larger-portioned products are
available in the American retail grocery market, and include product lines such as
Hungry-Man’s pre-packaged high-calorie dinners, that are marketed to individuals
with larger appetites. Many snack foods, such as potato chips and cookies, are also
commonly offered in larger-sized formats.
Increasing obesity rates within the United States may indicate that demand for
super-sized products is growing. The national obesity rate increased to 26.3% in
Overview of the Southwest Retail Grocery Market 19
2007 from 16.5% in 1997. Obesity rates are higher in the Southwest region (except
New Mexico) than nationally, which suggests stronger regional demand for larger-
sized product, and a limited healthier option market despite the perceived trend
towards healthier living.
Ready-Made Meals
The American ready-made meal market (i.e. including frozen, chilled, dried and
canned meals) has seen considerable growth over the past few years, as consumers
increasingly lead busier lifestyles. According to FMI, nearly 95% of all retail grocers
now offer ready-made meals for time-constrained shoppers. Fuelled by demand for
quick meal solutions, the segment increased roughly 16% from 2002 to total more
than US$23.1 billion in 2007 (Euromonitor International, Jan. 2008). Further
development of healthy, portable, premium, organic and ethnic options will continue
to drive segment growth. In fact, manufacturers are expected to continue to roll-out
more restaurant-quality ready-made meals and frozen pizzas to offer consumers
quick, high quality meal solutions. The ready-made meal category is projected to
reach over $24.9 billion by 2012, close to a 4% increase over 2007 totals
(Euromonitor International, Jan. 2008).
Ethnic Food
Due to increased ethnic diversity and global travel in recent years, the burgeoning
North American ethnic food sector has moved out of the specialty food category and
into the mainstream food industry. In fact, 75% of ethnic food consumption in the
United States is now supported by the mainstream population, fuelling a US$75
billion annual industry that accounts for US$1 out of every US$7 spent on groceries
(Euromonitor International, 2006). Research has also shown that the majority of
ethnic food and beverages are consumed by Caucasian consumers in the United
States, and that such products are largely purchased by mainstream shoppers and
those of other minority groups (Datamonitor, 2005).
Ethnic food products currently makeup more than 12% of all retail food sales and are
seeing 5% annual growth. Recent trends have resulted in an increasing consumer
base for Caribbean, Mediterranean, Indian, halal and kosher food. While consumer
demand for healthier food and exotic flavours is driving interest in these areas, rising
immigration levels are also playing a key role. The United States is expected to see a
visible minority population of 123.1 million (i.e. roughly one in three Americans) by
2020, a 30% increase over the country’s 2006 population of 94.4 million. The
majority of this increase (i.e. roughly 59%) is expected to be driven by Hispanics,
followed by African Americans (i.e. 23%) and Asian Americans (i.e. 18%). This
demographic trend is strong in the south-western states, with large and growing
immigrant populations in the region.
Specialty Food
Bolstered by the popularity of food television networks, celebrity chef cooking shows,
exotic cooking classes, and the introduction of upscale retail grocers (e.g. Whole
Foods Market) that sell a variety of premium products, Americans are becoming
more knowledgeable about food preparation and are “trading up”, using high quality
ingredients when cooking. Retailers are increasingly expanding their gourmet food
offerings with artisan cheese, bread, dips, oils, spreads, condiments and
confectionary; freshly-prepared meals and desserts; greater ethnic and international
food assortments; premium tea and coffee; and larger wine selections to cater to
such consumer demand. In the Southwest, stores are offering an expanded
Overview of the Southwest Retail Grocery Market 20
selection of regionally popular foods, for instance, Rouses (a Louisiana chain) carries
its own line of Southern Louisiana foods and offers specialized products particular to
the region such as boiled shrimp and boudin. Rouses and other south-western
retailers (e.g. Piggly Wiggly and Safeway’s projects) are also using store redesigns to
create an inviting upscale shopping environment for consumers.
According to Specialty Food Magazine’s The State of the Specialty Food Industry
2007 report, the American specialty food market was estimated at US$38.5 billion in
2006, and accounted for 10% of all retail grocery sales (2007). Specialty food sales
have increased 103% since 2001 and are currently outpacing general food sales by
17%; general food sales increased nearly 5% in 2006, while that of specialty food
rose 22% (Specialty Food Magazine). As of 2006, the largest specialty food
categories were condiments; cheese; coffee and cocoa; chips, pretzels and snacks;
and carbonated, functional and ready-to-drink (RTD) tea and coffee beverages
(Specialty Food Magazine). The magazine also identified energy bars and gels as the
fastest-growing specialty food category, having seen 269% growth between 2004
and 2006, followed by shelf-stable juices and functional drinks (107%), shelf-stable
meat, poultry and seafood (105%), water (90%), and RTD tea and coffee beverages
(58%).
Organics
Fuelled largely by consumer demand for more natural, minimally-processed and
pesticide-free food in North America, the American organic sector has seen dramatic
growth in recent years and is now one of fast-growing segments of American
agriculture. Consumer awareness and demand for organic food and beverages has
also greatly increased since the USDA Organic standards logo and certification
program was introduced in 2002. Grocery retailers have responded by expanding
their organic product offerings, especially by developing store brand organic food
lines. For instance, the Kroger Co., one of the top retailers in the Southwest region,
recently added more than 60 products under its Private Selection Organic label. In
fact, 82% of retail grocers now offer natural or organic options and 62% of which sell
private label organic products (FMI). According to the Organic Trade Association’s
2007 Manufacturer Survey, organic food sales totalled US$16.9 billion in 2006, a
22% increase over 2005 values. Organic food accounted for roughly 3% of national
retail grocery sales in 2006, up from 2.5% in 2005, and 1.9% in 2003. The success
of Texas-based Whole Foods Market, which specializes in natural and organic
products, is one indicator of the importance of the organics trend regionally, as well
as nationally. Whole Foods Market has expanded from 1 store in 1980 to over 270
locations across North America and the United Kingdom in 2008.
Local Food
Local food is growing in popularity among consumers nationally and in the Southwest
region. “Local” refers to the geographic location where it was produced, indicating to
consumers that a product is from nearby and therefore fresh. As freshness is an
important characteristic to consumers when selecting foods, the association between
“local” and freshness makes this label extremely powerful. According to Progressive
Grocer, the demand for “local” foods is less about reducing a carbon footprint and
more about fresh and healthy food. “Local” also has a symbolic meaning to
consumers, indicating a unique, distinct and authentic product. For example, “local”
is often used to suggest a product has a unique quality and taste associated with a
particular geographic area, or that it was produced by small producers. Grocery
retailers are capitalizing on this trend by offering more local food products, as well as
Overview of the Southwest Retail Grocery Market 21
including more local ingredients (ingredients that are grown in select regions known
for quality or taste).
Key Target Markets
Ethnic Consumers
The world’s largest ethnic food market is expected to see its consumer base continue
to grow. Ethnic consumers are forecast to account for 52% of the American
population by 2050 or 219.7 million consumers, an impressive 78% increase over
the country’s estimated 2020 population. These trends are, in turn, creating new and
increasingly attractive opportunities for Canadian agri-food producers and exporters.
Distinct retail grocery and foodservice trends exist in each region of the United
States. Age, race and income demographics vary from state to state and impact
regional flavour profiles. The following table outlines the Southwest region’s ethnic
consumer markets’ respective importance to Canadian food exporters.
Southwest United States Ethnic Populations, 2006
State/Region Hispanic African Asian Ethnic Ethnic
Population American American Population* Population
Population Population as % of
Nation’s
Population
Arkansas 0.138 million 0.438 million 0.028 million 0.604 million 0.20%
Kansas 0.236 million 0.154 million 0.061 million 0.451 million 0.15%
Louisiana 0.123 million 1.357 million 0.057 million 1.537 million 0.51%
New Mexico 0.861 million 0.040 million 0.026 million 0.927 million 0.31%
Oklahoma 0.245 million 0.263 million 0.059 million 0.567 million 0.19%
Texas 8.385 million 2.719 million 0.787 million 11.891 million 3.97%
Southwest 9.988 million 4.971 million 1.018 million 15.977 million 5.34%
United States 44.2 million 37.1 million 13.1 million 94.4 million 31.5%
Source: U.S. Census Bureau, 2006
* The total ethnic population is an estimate based on the total Hispanic, African American and Asian
American populations. Some overlap may exist between the populations in each of these groups. This
total does not include ethnic consumers from other groups.
A brief overview of major ethnic consumer markets in the United States is provided
below. For more in-depth information, please consult the United States Ethnic Food
Market report on the Agri-Food Trade Service Web Site at
http://www.ats.agr.gc.ca/us/4489_e.htm.
Hispanic Consumers
The Hispanic consumer segment is the largest ethnic group in the United States,
making up nearly 15% of the population or 45.5 million consumers in 2007. By
2030, it is projected that this segment will account for one out of every five
Americans, with an estimated 73 million Hispanics living in the United States.
Furthermore, apart from the country’s close proximity to Mexico, a recent influx of
Hispanic consumers in non-traditional Hispanic markets, such as Arkansas, has been
aided greatly by friendly municipal and state governments seeking key consumer
groups to boost local populations and economies. Hispanic buying power is expected
to reach US$1 trillion in 2008, nearly doubling from US$581 billion in 2002, to
achieve the highest level among ethnic groups in the United States. Roughly US$55
billion of this total is allocated to food annually.
Overview of the Southwest Retail Grocery Market 22
Approximately 10 million or over 23% of the nation’s Hispanic population live in the
Southwest region of the United States, with a particular concentration in Texas and
New Mexico. 35% and 44% of the population in Texas and New Mexico respectively
are Hispanic. In 2006, Harris County, TX had the second largest Hispanic population
of all counties in the United States, with 1.5 million Hispanic people. The Hispanic
population is also growing in other parts of the Southwest, from 2000-2006,
Arkansas’ Hispanic growth rate was the highest in the United States at 61%.
The large and growing Hispanic population in the Southwest region is due in part to
the region’s close proximity to Mexico, with the majority of Hispanics in the
Southwest United States being of Mexican origin. Regionally, 80% of the Hispanic
population is Mexican, 1% is Puerto Rican, 0.5% is Cuban and about 18% is from
other Latin American countries.
Hispanics make more shopping trips, spend more on groceries, and eat more at
home than their mainstream American counterparts. The segment has a preference
for using fresh ingredients when cooking, and therefore accounts for much of the
produce sales in the retail grocery market. Hispanics average 26 shopping trips per
month or twice as many outings as mainstream shoppers, and spend an average
US$133 per week on groceries compared to non-Hispanic shoppers’ typical US$93
weekly purchases. This is also due in part to Hispanic families being larger than the
national household average; Hispanic households have an average 3.34 residents,
while that of the general American population is 2.57 persons. Furthermore, more
than 43% of Hispanic homes have four or more people residing in them, versus 22%
of non-Hispanic households.
It is therefore not surprising that 61% of Hispanics state that they most frequently
shop at mass merchandisers such as Wal-Mart and Target. In fact, a 2005 study
found that roughly 36% of Hispanics identified Wal-Mart as their favourite store. The
retail giant recently announced a partnership with Pollo Campero, the largest Latin
American chicken restaurant chain, to attract more Hispanic consumers to Wal-Mart
stores. Roughly 500 Pollo Campero restaurants are forecast to open in the United
States by 2012, some of which will be located within Wal-Mart outlets. Wal-Mart is
also revamping a number of supercenters in Texas to meet Hispanic shopping needs
by adding specialty bakery items and meat, more ethnic brands and more services
and printed store information in Spanish. In May 2008, Wal-Mart opened its first
American store designed specifically to meet the needs of Hispanic shoppers. The
store is located in Garland, Texas and offers a number of specialty products including
fresh corn and flour tortillas, fresh-baked bolillo (a type of salty bread) and pandulce
(Mexican sweet bread), and an expanded selection of bananas, plantains, chillies and
spices.
A number of other large grocery outlets operating in the Southwest have recognized
opportunities among the Hispanic market and are investing millions to target this
growing population. Major retailers H-E-B, Kroger Co. and United Supermarkets
operate Hispanic-focused stores under the banners Mi Tienda, Mercado and Amigos
United. Fiesta Mart and Minyard (under the banner Carnival Food Stores and others)
are also catering to the Hispanic market in Texas. Furthermore, Affiliated Foods
recently hired two executives to focus on expanding Hispanic marketing programs.
As the Hispanic population in the Southwest is predominantly Mexican, Mexican
products are particularly popular in the region. Staples of the Mexican diet include
corn, maize, and beans, and dishes flavoured with tomato sauces and rich chilli
Overview of the Southwest Retail Grocery Market 23
pastes are common. Mexicans consume more seafood, poultry, and pork than
traditionally eaten in the United States. Mexican cuisine also uses different cuts of
meat than commonly used in the United States, for instance beef and pork intestines
and bones, and thin meat cuts are popular because of recipe requirements. Grilled
fish and ceviches are popular among Mexicans from coastal regions of Mexico, such
as Veracruz, while Mexicans from Oaxaca and Puebla, commonly eat stews, moles,
and braised meats and poultry. Herbs and spices like cinnamon, clove, cumin,
cilantro, thyme, marjoram, and epazote are regularly used in Mexican cuisine.
There is also increasing demand in the Southwest for specialty products for Hispanic
festivals, celebrations and events. For instance, a number of grocery retailers have
capitalized on celebrations such as Cinco de Mayo (May 5th) and Hispanic Heritage
Month to market Mexican beverages and food. Other Hispanic occasions, such as
the quinceañera (15th birthday for girls) have become important to grocery retailers
in Hispanic communities, with specialty items such as quinceañera cakes being
popular and selling for up to $750.
Brand names with high recognition and popularity among the Hispanic community
include Badia, Bimbo, Bustelo, Cacique, Coca-Cola, Doña María, Faraón, Gamesa,
Ganzito, Goya, Guerrero, Herdez, Iberia, Jarritos, Juanitas, Jumex, Knorr, La Cena,
La Costeña, Maggi, Maseca, Nestlé, Pilon, Productos Maya,Tampico and Vitarroz.
African American Consumers
Apart from the growing Hispanic market, the country’s African American population
is also an attractive consumer segment. Estimated at US$847 billion, the African
American consumer market’s level of purchasing power is the second-highest among
ethnic groups in the United States. This value has seen a compound annual growth
rate (CAGR) of almost 6% since its 2002 value of US$645 billion. African Americans
comprised almost 13% of the American population or 38.7 million consumers in
2007, an 8% increase over the 2000 population of 35.8 million. By 2030, it is
projected that this segment will account for 14% of Americans, with an estimated
50.4 million African Americans living in the United States. Currently, about 5 million
or 13% of the nation’s African American consumers live in the Southwest region of
the United States. Texas has the largest African American population in the region
and the fourth largest African American population in the United States at 2.7 million
in 2006. Louisiana also has a significant 1.4 million African American consumers.
The African American consumer market is generally made up of native born African
Americans and immigrants from a variety of Caribbean and African countries. This
naturally influences African American cuisine, which incorporates a blend of cooking
flavours and traditions from these regions. Bold flavoured options, such as Jamaican
jerk chicken, fried plantains, rice and bean dishes, and stews (e.g. Brazilian feijoada)
are popular. Authentic cooking ingredients are also important to African Americans,
who generally spend 27% more on such items than the average American shopper.
African Americans are highly brand loyal consumers and hot food promotional
tastings at retail grocery outlets have proven effective in targeting new products to
this segment.
Brand names with high recognition and popularity among the African American
community include Allens, Bull Dog, Bush’s Best, Colonial, Country Post, Far West
Meats, Franco American, Glory Foods, Grace, Hoffy, Homepride, Jiffy, La Fe,
Louisiana, Luck’s, Old Bay, Success, Sunbeam, Sylvia’s Soul Food, Taystee, Texas
Pete, Tropical, Uncle Ben’s, Uncle Lou’s and White Lily.
Overview of the Southwest Retail Grocery Market 24
Asian American Consumers
In addition to the country’s largest ethnic consumer groups, there is strong emphasis
on addressing the needs of the expanding Asian American population. Currently
estimated at 13.3 million consumers or nearly 4.5% of the population, this consumer
segment is projected to become the fastest-growing ethnic group in the United
States from 2010 to 2050, and see a 135% population increase over the period.
Asian Americans are also the most affluent market segment in the United States with
an average household income of US$51,908 in 1999, over 14% higher than that of
Caucasians, 54% larger than that of Hispanic consumers, and 76% greater than that
of African Americans. While unofficial, recent 2008 reports have stated that Asian
Americans now hold the highest per capita income of all consumer segments in the
United States.
While the proportion of Asian Americans in the Southwest region is smaller than
other ethnic groups (3% of the Southwest’s population), the Asian community offers
a sizeable and affluent group of over 1 million people to market ethnic products.
Texas has the largest Asian American population in the Southwest and the third
largest in the United States at 787,000 consumers.
Major grocery retailers in the Southwest are responding to the growing Asian
population by carrying more Asian products. There are numerous ethnic grocers that
target the Asian American community in the region. For example, H Mart, a South
Korean-owned chain, has 2 stores in Texas (Carrolltown and Houston) that cater to
the South Korean community. These stores carry a range of Korean products and
have flyers and other advertising in Korean.
According to AC Nielsen, Asian food sales at retail grocery outlets (excluding those at
Wal-Mart) increased 4.5% over 2005 levels to total US$1.1 billion in 2006. Asian
Americans generally prefer fresh food over processed or packaged goods, and
typically shop for groceries four to five times a week. Staples in almost all Asian
American diets include rice, noodles and vegetables.
Asian cuisine, particularly Chinese, Japanese and Thai food, has long been enjoyed
by mainstream American consumers, while other varieties, such as Vietnamese and
Korean, are becoming increasingly popular. Traditional Asian dishes are also
influencing the flavour profiles of many mainstream products; Asian-inspired sauces
and seasonings to snacks, appetizers and ready-made meals are now widespread in
the American marketplace. In fact, sales of two-food frozen entrées (i.e. ready-made
meals that contain two separately packaged types of food to be consumed together,
such as chow mein and rice) saw the most growth in the Asian food category,
increasing 26% from 2002 to reach US$85.5 million in 2006. However, the largest
portion of the Asian food market remains the one-food frozen entrée segment, which
totalled US$379 million in 2006.
Brand names with high recognition and popularity among the Asian American
community include Ajinomoto, Bin Bin, FOCO, Food Island, God of Fortune, Golden
Phoenix, Hinoichi, Homal, House Foods, Huy Fong Foods, Indo Mie, Kewpie, Kian
Guan, Kikkoman, Kirin Ichiban, Meiji, Mitsukan, Nestlé, Nong Shim, S&B Curry, UCC,
Vitamalt and Yamamotoyama.
Overview of the Southwest Retail Grocery Market 25
Halal and Kosher Food Markets
The large and growing Muslim and Jewish consumer populations in the United States
also present considerable opportunity for Canadian food manufacturers looking to
enter new markets. With its population of eight million to 11 million Muslim
consumers, the United States offers a lucrative halal market estimated at US$12
billion. The kosher food industry, while not new to North America, also continues to
grow with its 5.2 million Jewish consumer base in addition to a number of non-
Jewish consumers that are increasingly buying kosher products for a variety of
reasons.
The American kosher food industry was estimated at over US$7 billion in 2006, and
has seen roughly 102,000 food and beverage products enter the marketplace over
the past 20 years; approximately 2,500 products were certified kosher alone in
2007. Some industry experts have even suggested that nearly 50% of all packaged
food produced in the United States is kosher, and that most major brands are
certified kosher as well.
With such growth in the kosher food industry, many grocery retailers are now
devoting entire sections of their stores to kosher food. Kosher bakeries, delis, meat
departments, frozen food sections, general merchandise aisles and even sushi bars
can be found in many of Supervalu’s 13 grocery banners’ locations, as well as in
Wegmans, Shop Rite, and Tops Markets outlets among others, while mass
merchandisers Wal-Mart and Kmart continue to expand their kosher food product
offerings. The number of grocers offering kosher food sections is likely to expand as
retailers continue to place more importance on ethnic food merchandising.
Furthermore, as consumers continue to become more health conscious, especially in
the wake of recent worldwide food scares and the burgeoning green movement, they
are increasingly purchasing halal and kosher food (i.e. meat and other food products
slaughtered or processed according to Islamic and Jewish law). Such food is
appealing to a growing number of consumers outside of the Muslim and Jewish
communities, whether it be due to humane animal treatment concerns, demand for
vegetarian or lactose-free products (i.e. kosher food only), or a perception that such
products are healthier or safer.
Mediterranean Food Market
Mediterranean food (i.e. particularly Greek, southern Italian and
Spanish), cited as a major emerging ethnic cuisine in the North
American marketplace, gained huge popularity in 2007. The
consumer trend toward wholesome, boldly-flavoured ethnic food
has grown considerably in recent years, largely due to
Mediterranean cuisine having been marketed as a healthy diet
option in the United States since 1993. A Mediterranean diet
symbol for packaged food was released in the United States in April
2007 and has helped further drive the popularity of this cuisine.
Market Access
The United States remains a destination of constant trade and investment interest
for foreign investors, and holds strong potential for Canadian companies wanting to
enter the export market. To facilitate successful market entry, Canadian exporters
Overview of the Southwest Retail Grocery Market 26
are encouraged to develop market entry strategies that include working with local
brokers, importers and distributors to develop a presence, gain valuable market
advice, and best position products to meet local tastes, laws and pricing.
Canadian exporters should contact the Canadian Consulate General offices in the
Southwest region to obtain market information, identify new markets, find qualified
trade contacts, and obtain assistance in successfully exporting abroad. Detailed
information on customs procedures, documentation, tariffs and labelling
requirements can also be found on the Trade Commissioner Service Web site at
http://www.infoexport.gc.ca/ie-en/USMissions.jsp.
Key Resources
Associated Press. (2008, March 28). Kosher Food Are a Booming Business. Retrieved
May 12, 2008 from the World Wide Web: www.wral.com
Business Monitor International. (2008, July). Industry news: Retailers look to
convenience format. Americas Food & Drink Insight, p. 11.
Chanil, D., & McTaggart, J. (2008, April 15). The 75th Annual Report of the grocery
industry: Glass half full. Progressive Grocer, p. 24-42.
Cultural Access Group and About Marketing Solutions, Inc. (2002) Grow with
America - Best Practices in Ethnic Marketing and Merchandising.
Datamonitor. (2005, August 25). Insights Into Tomorrow’s Ethnic Food & Drink
Consumers: Targeting the consumption behaviour of minority groups and
mainstream consumers. Datamonitor. Retrieved May 2, 2008 from
Datamonitor online database (Consumer Markets Knowledge Center,
DMCM2363).
Department of Foreign Affairs and International Trade. (2008, January).
Agriculture/Agrifood Sector Profile - South Central USA. Retrieved July 31,
2008 from the World Wide Web: http://www.infoexport.gc.ca/ie-
en/DisplayDocument.jsp?did=77331
Euromonitor International. (2008, January). Convenience Stores – US. Euromonitor
International. Retrieved July 2, 2008 from Euromonitor International online
database.
Euromonitor International. (2008, January). Hypermarkets – US. Euromonitor
International. Retrieved July 2, 2008 from Euromonitor International online
database.
Euromonitor International. (2008, January). Packaged Food – US. Euromonitor
International. Retrieved July 2, 2008 from Euromonitor International online
database.
Overview of the Southwest Retail Grocery Market 27
Euromonitor International. (2008, January). Retailing – US. Euromonitor
International. Retrieved July 2, 2008 from Euromonitor International online
database.
Euromonitor International. (2008, January). Supermarkets – US. Euromonitor
International. Retrieved July 2, 2008 from Euromonitor International online
database.
Gatty, B. (2007, June 1). Dollars and scents. Progressive Grocer, p. 64-68.
Griffith, Lorie. (2007, December). Grocers Dazzle with New Formats. The Shelby
Report of the Southwest. p.3.
Martín, A. (2008, February). The undiscovered country: If you’re looking for growth,
you’d better be looking multicultural. Progressive Grocer, p. 70.
Martín, A. (2008, July). Cinco de Mayo is just the start. Progressive Grocer, p. 46,
48.
Martin, Armando. (July 1, 2008). Multicultural Marketing: Cinco de Mayo is just the
start. Progressive Grocer. Retrieved July 20, 2008 from the World Wide Web:
http://www.progressivegrocer.com/progressivegrocer/content_display/in-
print/current-issue/e3icd9d47dbd4b3a17b1b6276cf66bd84f5
McTaggart, Jenny. (November 1, 2006). Hispanic marketing sizzles in Houston.
Progressive Grocer, p.8-9.
McBain, Mindy. (2008, February). Profile: West Texas and New Mexico, p. 24-25.
McBain, Mindy. (2008, May). Smaller stores another way of staying competitive. The
Shelby report of the West, p. 10.
National Center for Chronic Disease Prevention and Health Promotion. (2007).
Prevalence Data - Weight classification by Body Mass Index. Retrieved July
23, 2008 from the World Wide Web:
http://apps.nccd.cdc.gov/brfss/page.asp?yr=2007&state=UB&cat=OB#OB
Progressive Grocer. (June 2008). Market Snapshot: Dallas-Fort Worth, Texas, p.12.
Reeves, Bob. (2008, January). Region roundup: Los Angeles discovers Fresh & Easy
shopping. The Shelby Report of the West, p. 6.
The Shelby Report of the Southeast (2008, July). Louisiana / Mississippi Market
Profile, p.62-63, 66-67.
The Shelby Report of the Southwest (2007, October). Kroger Expands Organic Line
by 60 Items, p.12.
The Shelby Report of the Southwest (2008, February). Region Roundup - Texas, p.6.
The Shelby Report of the Southwest (2008,March). Profile North Texas, p.24-25.
Overview of the Southwest Retail Grocery Market 28
The Shelby Report of the Southwest (2008,March). Valero Unveils “Road Runner”
Format in San Antonio, p.28.
The Shelby Report of the Southwest. (2008, July). Market Shares, p. 57-61.
The Shelby Report of the Southwest (2008, June).Region Roundup - Texas, p.7.
The Shelby Report of the Southwest (2008, June). Profile South Texas 2008, p.80-
81.
The Shelby Report of the Southwest (2008, April). Houston Profile 2008, p.30-32.
The Shelby Report of the Southwest (2007, December). H-E-B Opens New Concept
Store, p.1.
The Shelby Report of the Southwest (2007, December). State of the Southwest,
p.18.
The Shelby Report of the West. (2008, June). FMI Show coverage. The Shelby Report
of the West, p. 9.
The Shelby Report of the West. (2008, June). Region roundup: Costco sales get
boost from tough times. The Shelby Report of the West, p. 8.
The Shelby Report of the West. (2008, June). Retailers vie for stimulus checks to
boost sagging sales. The Shelby Report of the West, p. 45.
The Shelby Report of the West. (2008, June). Retail trends: Grocers face challenges
in store and from other retailers. The Shelby Report of the West, p. 46.
The Shelby Report of the West. (2008, May). Piggly Wiggly opens ‘intuitively’
merchandised store. The Shelby Report of the West, p. 12.
Tanner, R. (2007, April). The state of the specialty food industry 2007. Specialty
Food Magazine, 33-48.
U.S. Census Bureau. (2006). Fact Sheet for a Race, Ethnic or Ancestry Group.
American FactFinder. Retrieved May 19, 2008 from the World Wide Web:
http://factfinder.census.gov/servlet/SAFFFactsCharIteration?_submenuId=fac
tsheet_2&_sse=on
U.S. Census Bureau. (2004, March 18). Projected Population Change in the United
Sates, by Race and Hispanic Origin: 2000 to 2050. Population Projections.
Retrieved May 19, 2008 from the World Wide Web:
http://www.census.gov/ipc/www/usinterimproj/
U.S. Census Bureau. (2004, March 18). Projected Population Estimates of the United
Sates, by Race and Hispanic Origin: 2000 to 2050. Population Projections.
Retrieved May 19, 2008 from the World Wide Web:
http://www.census.gov/ipc/www/usinterimproj/
US Census Bureau. (2007). Metropolitan and Micropolitan Statistical Area Estimates
Overview of the Southwest Retail Grocery Market 29
Retrieved July 14, 2008 from the World Wide Web:
http://www.census.gov/population/www/estimates/CBSA-est2007-pop-
chg.html
United Supermarkets. A Taste of Market Street. Retrieved July 21, 2008 from the
World Wide Web: http://www.marketstreetunited.com/atoms.asp
Overview of the Southwest Retail Grocery Market 30
Related docs
