Food Policy Institute | Current Product Recalls

SUPERMARKET FACTS
Industry Overview 2006
Please note: data for 2006 will be released beginning in May of 2007.

Number of employees- 2002
3.4 million
Total supermarket sales-2006
$499.5 billion
Number of supermarkets--2006 ($2 million or more in annual sales)
34,019
Net profit after taxes, 2005/2006
1.46%
Median Average Store Size in Square Feet-2006
48,750
Median Average weekly sales per supermarket 2006
$327,823

Percentage of disposable income spent on food--USDA figure for 2005
food-at-home
food away-from-home


5.8%
4.1
Weekly sales per square foot of selling area-2006
$11.04
Sales per customer transaction-2006
$29.26
Sales per labor hour-2006
$133.31
Average # of trips per week consumers make to the supermarket-2006
1.9
Average # items carried in a supermarket in 2006
45,000


Sources: U.S. Department of Labor, U.S. Department of Agriculture, Progressive Grocer magazine, U.S. Census Bureau, and Food Marketing Institute These operating results are typical of FMI’s member supermarkets. They represent average performance based on data from a cross-section of FMI members.


STORE DEFINITIONS

By Type of Store

Grocery Store — Any retail store selling a line of dry grocery, canned goods or nonfood items plus some perishable items.

Supermarket—Any full-line self-service grocery store generating a sales volume of $2 million or more annually

Convenience Store— Any full-line, self-service grocery store offering limited line of high-convenience items. Open long hours and provides easy access. The majority sell gasoline with an annual sales of $2 million or more.

Independent — An operator of fewer than 11 retail stores.

Chain — An operator of 11 or more retail stores.

By Store Format

Conventional Supermarket - The original supermarket format offering a full line of groceries, meat, and produce with at least $2 million in annual sales. Conventional stores will realize 9% of their sales in GM/HBC. These stores typically carry approximately 15,000 items, offer a service deli and frequently a service bakery.

Superstore - A larger version of the conventional supermarket with at least 40,000 square feet in total selling area and 25,000 items. Superstores offer an expanded selection of non-foods (at least 10% GM/HBC).

Food/Drug Combo - A combination of superstore and drug store under a single roof, with common checkouts. GM/HBC represents at least one-third of the selling area and approximately 15% of store sales. These stores also have a pharmacy.
Warehouse Store - A low-margin grocery store offering reduced variety, lower service levels, minimal decor, and a streamlined merchandising presentation, along with aggressive pricing. Generally, warehouse stores don't offer specialty departments, e.g., Xtra.

Super Warehouse - A high-volume, hybrid format of a superstore and a warehouse store. Super warehouse stores typically offer a full range of service departments, quality perishables, and reduced prices, e.g., Cub Foods.
Limited-Assortment Store - A "bare-bones," low-priced grocery store that provides very limited services and carries fewer than 2,000 items with limited-if any-perishables, e.g., Aldi and Sav-A-Lot.
Other - The small corner grocery store that carries a limited selection of staples and other convenience goods. These stores generate approximately $1 million in business annually.

Convenience Store (Traditional) - A small, higher-margin store that offers an edited selection of staple groceries, non-foods, and other convenience food items, i.e., ready-to-heat and ready-to-eat foods. The traditional format includes those stores that started out as strictly convenience stores but might also sell gasoline.

Convenience Store (Petroleum-Based) - The petroleum-based stores are primarily gas stations with a convenience store.
Non-Traditional Grocery

Hypermarket - A very large food and general merchandise store with approximately 180,000 square feet of selling space. While these stores typically devote as much as 75% of the selling area to general merchandise, the food-to-general merchandise sales ratio is typically 60/40, e.g., Bigg's.

Wholesale Club - A membership retail/wholesale hybrid with a varied selection and limited variety of products presented in a warehouse-type environment. These 120,000 square-foot stores have 60% to 70% GM/HBC and a grocery line dedicated to large sizes and bulk sales. Memberships include both business accounts and consumer groups, e.g., Sam's Club, Costco, and BJ's.

Mini-Club - A scaled-down version of the wholesale club. The mi