SUPERMARKETS EXPECTED TO LOSE SHARE

Although traditional supermarkets showed strong sales growth in 2006, they are slated to lose share to non-traditional stores (like supercenters) over the next five years, according to The Food Institute and Willard Bishop Consulting. Traditional supermarkets will see share fall to 37.3% by 2011, reports supermarketnews.com, down from 44.1% today. Supercenters’ share, on the other hand, will increase to 20.3%, up from its current 14.5% standing.

Traditional supermarkets will grow at an annual rate of just 1.4% during that five year period, while supercenters, limited-assortment stores (Trader Joe’s and Aldi) and fresh format stores (Whole Foods and Wild Oats) will increase 10.7%, 9% and 7.3%, respectively.