Industry Analysis & Industry Trends
Despite numerous challenges, including stagnant profit margins, the Supermarkets and Grocery Stores industry has found a way to achieve growth in the five years to 2014. Contrary to recessionary spending patterns experienced by many other retail industries, supermarkets and grocery stores benefited from lower per capita disposable income levels because many consumers chose to purchase food from this industry rather than eat at restaurants. Improvements in the economy will increase per capita disposable income levels in the coming years, which will give consumers more discretionary income. A large percentage will choose to return to eating at restaurants, while some continue to shop at industry establishments, keeping growth steady... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
In the 10 years to 2019, industry value added (IVA), which measures an industry's contribution to the economy, for the Supermarkets and Grocery Stores industry is expected to decrease at an average annual rate of 0.2%. Comparatively, the Canadian GDP is forecast to grow 2.4% per year on average during the same period. While an underperforming IVA is indicative of a declining industry, this industry is characterized as mature for a number of reasons including the inelastic nature of grocery products, market saturation and a steady adoption of new technology.
Despite the inelastic nature of grocery items, the demand for grocery products has been suppressed due to intensifying competition from alternative retailers... purchase to read more