Traditional food retailers
Foodstore. A retail outlet having at least 50 percent of sales in food products intended for off-premise preparation and consumption. Foodstores include Grocery Stores and Specialized Foodstores.
Grocery Store. A foodstore that sells a general line of food products, such as canned and frozen foods; fresh fruits and vegetables; fresh and prepared meats, fish, and poultry; and nonfood grocery products. Included are supermarkets, superettes and small grocery stores, and convenience stores.
Supermarket. A grocery store, primarily self-service, providing a full range of food departments, having sales equivalent to $2 million or more in 1980 dollars, adjusted annually for inflation. A number of supermarket formats have evolved:
- Combination food and drug. A supermarket containing a pharmacy, nonprescription medicines, and personal care products, combined with the larger variety and size of a superstore format. General merchandise and personal care products account for about 15 percent of store sales, while food products account for 85 percent of sales.
- Conventional. The original supermarket format containing all major food departments, nonfood grocery, and limited general merchandise products. The conventional supermarket carries approximately 15,000 unique items and may offer service deli and bakery departments.
- Hypermarket. The largest supermarket format, typically 150,000 square feet or more of floor space. General merchandise accounts for 40 percent of sales, while food and nonfood grocery products represent 60 percent of sales.
- Limited-assortment. A warehouse supermarket that provides very limited services and carries fewer than 2,000 items with limited perishable products.
- Superstore. A larger version of the conventional supermarket, with at least 40,000 square feet in total selling area and 25,000 items. Superstores offer an expanded selection of nonfood items, including health and beauty products and general merchandise.
- Super Warehouse. A high-volume, hybrid format of a superstore and a warehouse store. Super warehouse stores typically offer a full range of service departments, perishables, and competitive prices.
- Warehouse. A "no frills" supermarket with limited product variety and fewer services than a conventional supermarket, incorporating case-lot stocking and shelving practices.
Convenience store (without gasoline). A small grocery store, selling a limited variety of food and nonfood products, typically with extended hours. Grocery products account for 45 percent of sales. Ready-to-eat, heat-and-serve foods, and fountain beverages represent about 10 percent of sales. Packaged liquor, beer, and wine, and tobacco products account for another 35 percent of sales.
Superette. A grocery store, primarily self-service, offering all five major supermarket departments but having annual sales less than $2 million in 1980 dollars.
Small grocery store. A "neighborhood" or "mom and pop" grocery store offering limited staple foods and nonfood items.
Specialized Foodstore. A foodstore primarily engaged in the retail sale of a single food category, such as meat and seafood markets, produce markets and stands, dairy stores, candy and nut stores, and retail bakeries.
Nontraditional food retailers
Warehouse Club Stores. A membership-based wholesale-retail hybrid outlet, serving both small businesses and individual consumers, housed in a large, warehouse-style environment. Grocery products (in large and multi-pack sizes) account for about 30 percent of sales. General merchandise, including clothing, electronics, small appliances, and automotive products account for 70 percent of sales.
Dollar store. A small variety store that sells general merchandise and, increasingly, food products. These stores offer a wide assortment of basic household goods at very low prices.
Mass-merchandise store. A large store that primarily sells household items, electronic goods, sporting goods, and apparel, but also offers packaged food products, typically at discount prices.
Supercenter. A large combination supermarket and discount general merchandise store, averaging 170,000 square feet of floor space. Grocery products account for up to 40 percent of floor space.
Other Retail Food
Non-store retailers. Included are sales of food through mail-order houses, vending machines, home delivery sales, door-to-door sales, and electronic shopping. Direct sales of food by farmers, manufacturers, and wholesalers to consumers are also included.
Sources: Census of Retail Trade, 2002; Competitive Edge, July, 2006, Willard Bishop Consulting, Inc.; Progressive Grocer, various issues; Supermarket News, various issues.
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