USDA, Economic Research Service (ERS) provides information on food store sales and sales growth as well as the share of food sales by retail segment and concentration.
Retail Food Sales and Sales Growth
The United States' 115,526 food stores sold $717 billion of retail food and nonfood products in 2019. Grocery stores—including supermarkets and smaller grocery stores, except convenience stores—accounted for the largest share of store sales (92.1 percent), followed by convenience stores without gasoline (4.6 percent). Specialized food stores—including meat and seafood markets, produce markets, retail bakeries, and candy and nut stores—accounted for the remaining 3.3 percent of the total.
Grocery store (excluding convenience stores) food sales increased following the 2007–2009 Great Recession—a period of economic uncertainty in which traditional grocery retailers experienced negative inflation-adjusted growth. Since 2010, grocery store food sales growth (in current dollars) exceeded the rate of inflation. Inflation-adjusted food sales growth from 2010 to 2019 averaged 1.31 percent per year, compared with –0.19 percent per year from 2000 to 2009.
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National Food Retail Concentration
Total U.S. food sales at supermarkets, other grocery (except convenience) stores, warehouse clubs, and supercenters reached $653 billion in 2019 (gray bars). At the national level, sales by the 20 largest food retailers totaled $410.4 billion in 2019, accounting for 65.1 percent of total food sales (purple line). This share increased 85.9 percent from 1990 to 2019 (from 35.0 percent to 65.1 percent, respectively).
Before and after the Great Recession of 2007–2009, market shares held by the largest 4, 8, and 20 retailers decreased slightly. Since 2012, the longer term trend of an increasing concentration of sales among the United States’ largest retailers has resumed. This trend continued for the top 4 retailers, although the ratio for the top 20 and top 8 fell slightly in 2018, declining by 1.6 and 0.6 percent, respectively. The share of food sales at supermarkets, other grocery (except convenience) stores, warehouse clubs, and supercenters by the top 8 and top 20 retailers rose for 5 consecutive years from 2012 to 2017. The share of food sales by the top 4 retailers rose every year since 2012.
FAQs
Personalization: Catering to Consumer Preferences and Health Trends. The future of grocery retail lies in personalization. Retailers are harnessing consumer data to tailor shopping experiences. From customized promotions to curated product recommendations, personalization is becoming a key driver of customer loyalty.
How big is the US grocery market? ›
Grocery store sales have grown dramatically since the 90's. Since 1992, sales have more than doubled. The total sales generated by grocery stores in the United States in 2023 amounted to 884.8 billion U.S. dollars.
What percentage of retail sales are groceries? ›
Grocery stores—including supermarkets and smaller grocery stores, except convenience stores—accounted for the largest share of store sales (92.1 percent), followed by convenience stores without gasoline (4.6 percent).
What major trends are retailers facing? ›
The theory that shoppers want to be entertained - via their social platforms - is already being proven. The Influencer Marketing Hub's report, 'The State of Social Shopping in 2024,' found that 98% of customers plan to use social purchasing at least once this year - a huge increase on last year's 68% of purchasers.
What are the next big food trends? ›
What foods are trending 2024? 2024 is a year of alternatives, including almond milk, vegetarian fried chicken, potato milk, fusion flavors and plant-based meat to name a few. There's also a focus on global dishes, even more bold flavors, and urban produce.
What is the emerging trend in the retail industry? ›
Augmented reality (AR) and virtual reality (VR) are becoming more prevalent in retail, providing innovative ways for customers to experience products and shop more efficiently. By creating immersive shopping experiences and enabling customers to try on products virtually, AR and VR are transforming the retail industry.
What are the problems with food retail industry? ›
Grocers have been plagued by the same concerns other retail industries over the past several years, including the global pandemic, supply chain disruptions, and labor shortages. However, they have also had to contend with the additional challenge of being considered “essential businesses.”
Who is the #1 grocer in the US? ›
Walmart is America's grocery king — and no one is close to stealing its crown. Walmart is the biggest grocery retailer in the US by a long shot. The company reported more than $264 billion in US grocery sales last year, continuing its dominance.
What is the most purchased grocery item in the US? ›
If the pun didn't make it obvious, the most popular grocery store item is bananas. Apparently, Americans can't get enough of the number one best-selling grocery store food. The average American consumes around 90 of the potassium-filled fruit every year. This equates to roughly 27 pounds of bananas.
How much profit do grocery stores make per item? ›
While traditional grocers average one to three percent on margins, specialty organic and natural food markets often see healthier margins of around five percent. Customers pay premium prices for specialty products, allowing for better profit potential.
In Thursday's report, the FTC found that a measure of annual profits for food and beverage retailers "rose substantially and remains quite elevated." The commission said revenues for grocery retailers were 6% over total costs in 2021, and 7% in the first nine months of 2023, higher than a peak of 5.6% in 2015.
Why are grocery store sales down? ›
“Second, even though inflation has recently fallen faster than expected, its cumulative effect continues to drive a flight-to-value behavior in grocery shopping and that will slow topline sales growth.”
What are the emerging trends in retailing? ›
Ans. Some emerging retail trends to look out for in 2024 include the increasing use of virtual and augmented reality in shopping experiences, the growth of eco-friendly and sustainable products, and the rise of personalized shopping experiences through the use of data and AI.
What will shaping the future of retail? ›
The Rise of Omnichannel Retailing
Just as AI technology is unifying customer experiences through connected digital systems to offer highly targeted services, omnichannel focuses on integrating multiple touchpoints to provide shoppers with a seamless experience across channels.
Why are trends important in retail? ›
Retail trends are important because they can help boost the customer experience and drive your business strategy. Retail trends can also give you a glimpse into what the future will look like for the industry.
What trends have you recently seen retailers adopt to try and keep up with the changing times? ›
Different trends in retailing include omnichannel experiences, personalization, sustainability initiatives, automation, 24/7 customer service, less waste in packaging, integration of advanced technologies, flexible payment options, hybrid commerce, augmented and virtual reality shopping, and a focus on data-driven ...
