Is a self-service food store offering groceries, meat, and produce with limited sales of no food items, such as health and beauty aids and general merchandise.
*Perishables like meat and produce account for 50% of supermarket sales and typically have higher margins than packaged goods.
*Conventional supermarkets carry 30,000 SKU, where limited assortment retailers (Save-A-Lot, Aldi) and Extreme Value Food Retailers only stock 1250 SKU.
*Supermarkets face strong competition (b/c of superior operating effeciencies)
1. Emphasizing fresh perishables
2. Targeting health-conscious and ethnic consumers
3. Providing a better in-store experience
4. Offering more private-label brands
*Offering Private Labels (ex. Meijer Brands)
1. More money for retailers, cheaper for consumers
2. Increases loyalty
3. Differentiates themselves from the competition