Grocery Stores Continuing to Lose Share of Customer Shopping Trips

According to findings from a recent ACNielsen study, consumers are continuing to shop less frequently in traditional grocery stores and are increasing trips to supercenters like Wal-Mart and dollar stores. The study found that while U.S. households still shop in traditional grocery stores, the annual number of trips made to the stores is continuing to decline. Among supercenters, Wal-Mart has been the most successful at converting grocery-store customers to Wal-Mart customers. The study found that while 7 percent of 2001 Wal-Mart Supercenter sales growth came from new shoppers and 21 percent came from existing shoppers who increased their Wal-Mart Supercenter spending, the majority -- 72 percent -- came from a direct shift of dollars that had previously gone to other channels. Almost one-third of that "channel-shift" growth came from the grocery channel. Todd Hale, senior vice president, consumer insights, ACNielsen U.S., points out that the degree to which Wal-Mart is gaining at the expense of the grocery channel is somewhat less than would be expected. "When you exclude the supercenter channel, grocery stores generated 40 percent of all-outlet revenue in 2001. Therefore, of the channel-shift revenue growth experienced by supercenters, we would expect 40 percent to come from the grocery channel. The fact that it was 32 percent means grocers are having at least some measure of success defending their turf." Study findings are based on an analysis of ACNielsen Homescan consumer panel data.