Supermarkets Are Getting Pulverized By Drug, Dollar & Club Stores

Traditional grocery market share has declined to 51 per cent from 66 per cent in 2000.

The following chart from UBS shows how customers first go to club stores, dollar stores, supercenters and even drug stores to fill certain needs. Going forward stores will face even more competition from online.

UBS likes grocery stores that have been able to differentiate and compete on price, including Whole Foods Market, Harris Teeter and Fresh Market.

chart

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