Industry Analysis & Industry Trends
The Supermarkets and Grocery Stores industry has stagnated over the past five years. Suppressed disposable income levels during the first half of the five-year period caused consumers to seek deals and promotions, which placed downward pressure on industry revenue growth. Moreover, increased competition from alternative retailers lowered the volume sales of certain goods, and further pressured industry operators to lower their product prices. As disposable income levels continue to improve in the upcoming years, the industry is anticipated to grow. Despite the growing popularity of generic products and competition from alternative retailers, more consumers will trade up to branded goods and organic products... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
In the 10 years to 2021, industry value added (IVA), which measures an industry's contribution to the economy, for the Supermarkets and Grocery Stores industry is expected to increase at an average annual rate of 0.7%. Comparatively, the Canadian GDP is forecast to grow 1.9% 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 several reasons including the inelastic nature of grocery products, market saturation and a steady adoption of new technology.
Despite the inelastic nature of grocery items, demand for grocery products has been suppressed due to intensifying competition from alternative retailers... purchase to read more