Phoenix Grocery Market Share

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rwsandiego
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Phoenix Grocery Market Share

Post by rwsandiego »

The Phoenix Business Journal published this story about grocery market share. I was surprised to see that Sprouts was so low, as their stores are typically very busy. Albertsons (4.8%) and Safeway (13.3%) were counted separately. If they combine the brands into Safeway they would trudge past Walmart's 16.8%.

PS: I subscribe to PBJ, so I'm not sure whether the story is behind a paywall. If it is please let me know and I'll type out the list.
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Re: Phoenix Grocery Market Share

Post by SamSpade »

The main article / slideshow didn't seem to be behind a paywall, but the link to the interview with the Basha's executive was.
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Re: Phoenix Grocery Market Share

Post by klkla »

rwsandiego wrote: April 11th, 2018, 9:25 amI was surprised to see that Sprouts was so low, as their stores are typically very busy. Albertsons (4.8%) and Safeway (13.3%) were counted separately. If they combine the brands into Safeway they would trudge past Walmart's 16.8%.
Keep in mind that average transaction size at Sprouts would be lower because they sell a limited number of SKU's.

What was Fry's and Basha's market share?
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Re: Phoenix Grocery Market Share

Post by rwsandiego »

klkla wrote: April 11th, 2018, 3:08 pm
rwsandiego wrote: April 11th, 2018, 9:25 amI was surprised to see that Sprouts was so low, as their stores are typically very busy. Albertsons (4.8%) and Safeway (13.3%) were counted separately. If they combine the brands into Safeway they would trudge past Walmart's 16.8%.
Keep in mind that average transaction size at Sprouts would be lower because they sell a limited number of SKU's.

What was Fry's and Basha's market share?
The report combined Basha's, Food City, and AJ's into one at 7.5% (note that they did not combine Albertson's and Safeway) and Fry's was 23.6%.
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Re: Phoenix Grocery Market Share

Post by arizonaguy »

rwsandiego wrote: April 11th, 2018, 9:25 am The Phoenix Business Journal published this story about grocery market share. I was surprised to see that Sprouts was so low, as their stores are typically very busy. Albertsons (4.8%) and Safeway (13.3%) were counted separately. If they combine the brands into Safeway they would trudge past Walmart's 16.8%.

PS: I subscribe to PBJ, so I'm not sure whether the story is behind a paywall. If it is please let me know and I'll type out the list.
For some reason they separated Walmart and Walmart Neighborhood Market.

The total market share for both is 19%. 16.8% for Walmart Supercenter and 2.2% for Walmart Neighborhood Market. If we want to group all Walmart owned stores together, Sam's Club adds 3.8%.

I've extrapolated the numbers here (based upon corporate ownership):

1.) Kroger (operating as Fry's Food and Drug and Fry's Marketplace): 94 stores, 23.6% market share
2.) Walmart (operating as Walmart Supercenter, Walmart Neighborhood Market, and Sam's Club): 73 stores, 22.8% market share
3.) Albertsons (operating as Albertsons and Safeway): 83 stores, 18.1% market share
4.) Costco (operating as Costco Wholesale and Costco Business Center): 14 stores, 10.4% market share
5.) Bashas (operating as AJ's Fine Foods, Bashas, and Food City): 70 stores, 7.5% market share
6.) WinCo Foods: 7 stores, 3.20% market share
7.) Sprouts Farmers Market: 25 stores, 3.0% market share
8.) Target (operating as Target and Super Target): 30 stores, 2.8% market share
9.) Trader Joe's: 9 stores, 1.9% market share
10.) Whole Foods Market: 5 stores, 1.3% market share
11.) Los Altos Ranch Market: 7 stores, 1.2% market share
12.) El Super: 5 stores, 1% market share
13.) Dollar Tree (operating as Dollar Tree and Family Dollar): 145 stores, 0.8% market share
14.) Smart and Final: 6 stores, 0.7% market share
15.) 99 Cents Only: 28 stores, 0.5% market share
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Re: Phoenix Grocery Market Share

Post by klkla »

arizonaguy wrote: April 11th, 2018, 5:42 pmI've extrapolated the numbers here (based upon corporate ownership):
Thanks for doing that.

Just for fun I extrapolated the per store market share for each chain which gives us a ranking for sales per store. Not too much of a surprise except Target is so low. How many Target stores in PHX are Super Targets?

1.) Costco .742 per store
2.) WinCo .457 per store (impressive IMO)
3.) WalMart .312 per store
4.) Whole Foods .260 per store
5.) Fry's .251 per store
6.) Albertson's/Safeway .218 per store (close to Fry's than I would have imagined)
7.) Trader Joe's .211 (pretty impressive for store size, close to ABS/SWY)
8.) El Super .200 per store
9.) Los Altos .171 per store
10.) Sprouts .120 per store
11.) Smart & Final .116 per store
12.) Basha's .107 per store (really poor performance compared to peers)
13.) Target .093 per store (Lower than Bashas?)
14.) 99 Cents Only .017 per store
15.) Dollar Tree .005 per store
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Re: Phoenix Grocery Market Share

Post by arizonaguy »

klkla wrote: April 11th, 2018, 8:02 pm
arizonaguy wrote: April 11th, 2018, 5:42 pmI've extrapolated the numbers here (based upon corporate ownership):
Thanks for doing that.

Just for fun I extrapolated the per store market share for each chain which gives us a ranking for sales per store. Not too much of a surprise except Target is so low. How many Target stores in PHX are Super Targets?

1.) Costco .742 per store
2.) WinCo .457 per store (impressive IMO)
3.) WalMart .312 per store
4.) Whole Foods .260 per store
5.) Fry's .251 per store
6.) Albertson's/Safeway .218 per store (close to Fry's than I would have imagined)
7.) Trader Joe's .211 (pretty impressive for store size, close to ABS/SWY)
8.) El Super .200 per store
9.) Los Altos .171 per store
10.) Sprouts .120 per store
11.) Smart & Final .116 per store
12.) Basha's .107 per store (really poor performance compared to peers)
13.) Target .093 per store (Lower than Bashas?)
14.) 99 Cents Only .017 per store
15.) Dollar Tree .005 per store
There are 6 SuperTargets, 23 "standard" Targets, and 1 "flexible format" Target. I don't think I've ever really seen the grocery department at any Target I've been to doing a lot of business. One of the SuperTarget stores is about 1/4 mile from my house and I stop in there to pick up a quick item or two. However, if I fill an entire basket I tend to drive past the SuperTarget to go to Fry's.

As far as Bashas' is concerned, all 3 of their banners have good perimeters but have a rather lackluster center store offering that is not competitively priced and, except for the AJ's stores, tend to be fairly low volume (although AJ's is a "specialty" store).

The Costco and Trader Joe's stores here are all madhouses almost all of the time so those numbers aren't surprising in the least. I believe Phoenix is one of Costco's best preforming markets.
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Re: Phoenix Grocery Market Share

Post by pseudo3d »

arizonaguy wrote: April 11th, 2018, 10:20 pm As far as Bashas' is concerned, all 3 of their banners have good perimeters but have a rather lackluster center store offering that is not competitively priced and, except for the AJ's stores, tend to be fairly low volume (although AJ's is a "specialty" store).
You could probably say the same thing about Safeway/Albertsons to an extent, but Bashas' do less than half as well as Safeway/Albertsons, and Safeway/Albertsons underperforms compared to Fry's, which is the best-performing "traditional" supermarket.

My guess is that for Bashas', there's a whole bunch of stores that are marginal performers and really should be closed.
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Re: Phoenix Grocery Market Share

Post by jamcool »

Bashas’ cash cow is Food City and the small-town/reservation stores, where they are often the only grocer for miles (and Amazon can’t or won’t serve those areas)
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Re: Phoenix Grocery Market Share

Post by rwsandiego »

jamcool wrote: April 12th, 2018, 10:26 am Bashas’ cash cow is Food City and the small-town/reservation stores, where they are often the only grocer for miles (and Amazon can’t or won’t serve those areas)
They also have a following in the Phoenix neighborhoods in which they have stores. It is the entire "shop local" thing.
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