STORES Magazine - July 2008 - (Page T12)

2OO8 • TOP 1OO retailers Sponsored by POWER PLAYERS • SUPERMARKETS mong supermarkets, the “Big Thing” is all about getting small. British supermarketer Tesco, the world’s third-largest retailer, appeared to take the United States by storm last year when it began plopping down 10,000-sq.-ft. Fresh & Easy convenience grocery stores in western cities. Loaded with prepared foods and private-label goods, these units were widely viewed as being the catalyst in transforming the American supermarket industry from big (or medium-sized) box operations to community food stores. After an initial sprint, Tesco has taken a breather from opening more stores – and WalMart has seized the opportunity to accelerate the launch of Marketside, a community grocery store of about 15,000 sq. ft. Featuring a kitchen and an eat-in food counter, Marketside will also make its maiden appearance in the West. Among the traditional supermarket Power Players, only Safeway has actually built a smaller unit — The Market by Vons, a 15,000-sq.-ft. location in Long Beach, Calif. Kroger already operates 780 convenience stores, under several banners, including Kwik Stop, Loaf & Jug and Tom Thumb Food Stores, which would seem to give it all the tools necessary to open neighborhood A 17 groceries. Instead, the company appears to prefer concentrating resources on larger concepts like the Marketplace supercenter and more traditional Fresh Market stores. SUPERVALU had opened a smaller-format store called Sunflower, but pulled the plug in the aftermath of its acquisition of a multitude of Albertsons locations. “The jury is still out on whether small-format food stores will meet shopper expectations and company return on investment objectives going forward,” writes Jennifer Halterman, author of the report Small Stores, Big Trend and a senior consultant with TNS Retail Forward. 10 11 Company Kroger SUPERVALU Retail Safeway Publix Ahold USA(e) Delhaize America(e) H.E.B.(e) 2007 Revenues Comparable(000) Store Sales $70,235,000 44,048,000 42,286,000 23,000,000 21,000,000 18,200,000 13,400,000 5.3%* 0.5** 3.4 4.7 N.A. N.A. N.A. Sales per Store $19,179,410 17,804,365 24,260,470 24,784,482 25,301,204 11,482,649 43,225,806 (e) Estimate * Identical supermarkets without fuel ** Identical stores, pro forma N.A. Not Available T12 STORES / JULY 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - July 2008

STORES Magazine - July 2008 Contents Executive Editor's Page President's Page Dearth of Retail Creativity What Shoppers Think Wow, Is That a Wawa? 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Merchandising Strategy Concept2Watch Point of Sale Outsourcing Human Resources Top 100 Retailers Store Design RFID IT Operations Systems Managements LP Vantage Point Newsbeat Cover Story Emergency Response Systems Background Checks LOEB Retail Letter Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - July 2008

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