A year of unprecedented events found retailers reaping large sales increases in an environment where the effects of the worst pandemic in 100 years created hardships and sadness for many Americans. And despite their success selling more groceries at store level and via their e-commerce platforms, merchants also faced significant challenges and expense as they attempted to keep their stores safe for both their associates and customers.
In our annual Food Trade News Market Study (published in the June 2021 issue that went out this week), we review the key individual markets in a 70-county territory ranging from Litchfield County, CT to Cape May County, NJ on a north-south plane and from New Haven County, CT to Franklin County, PA on an east-west plane and assess and analyze what’s occurred over the past year.
Comparable store increases over the 12-month period from April 1, 2020-March 31, 2021, were generally in the 12-14 percent range with supermarkets, mass merchants and club operators experiencing the most success, especially when compared to the drug and c-store channel retailers.
As we review the leading retailers in the Food Trade News marketing area, please note that while total sales skyrocketed during the pandemic, there was only minimal share of market change. Retailers who fared best were often those who maintained the best in-stock levels during the first three months of the pandemic as well as those operators who consumers felt did the best job of offering the safest shopping environments. One more note: since we began publishing our market study in 1979, the number of new stores openings – a factor that affects market share change – was at an all-time low.
Here’s a look the top 10 retailers in the $109.4 billion region:
For the 36th consecutive year, ShopRite and its sister banners (Price Rite, Fresh Grocer, Gourmet Garage, Dearborn Market and newly-added Fairway Market) continued to dominate the landscape in the overall marketing area. Over the past 12 months, ShopRite added to its already dominant store base by acquiring five bankrupt Fairway Markets (four in Manhattan and one in Pelham Manor, NY) operated by Village Super Markets. The company also opened new stores in Staten Island, NY (a replacement ShopRite unit operated by the Mannix family), Moosic, PA (a new ShopRite operated by the Bracey family) and a Fresh Grocer in Cedar Grove, NJ (operated by the Maniaci family, which joined the Wakefern co-op last year). All told, the Keasbey, NJ-based merchant operated 278 stores in the region and amassed estimated annual sales of $16.57 billion.
Aided by the completion of the successful remodeling program at its 51 Long Island stores over the past 12 months, and the sales tailwinds of COVID-19, Stop & Shop enjoyed its best sales performance in many years. Operating the same 211 stores in our marketing area as last year, most of them in Metro New York, the Ahold Delhaize USA (ADUSA) brand rang up revenue of $8.47 billion, an increase of $460 million over 2020’s revenue.
Moving up a notch to third-place is another ADUSA brand – The Giant Company (formerly Giant/Martin’s). The Carlisle, PA-based merchant added three new stores to its roster including its first ever conventional supermarket in Center City Philadelphia (Riverwalk) on 23rd & Arch Street. Sales for the 12 months ending March 31, 2021 were $6.78 billion. The non-union operator also gained momentum over the past 12 months by elevating its e-commerce business.
Dropping a notch to fourth, CVS retained its leadership among drug chains in the market. The Woonsocket, RI-based drug chain now operates 1,300 units in the 70-county region with estimated annual sales of $6.34 billion.
Walmart once again did not open a net new store this year, but it did expand two “division one” stores – Roxbury, NJ and Farmingdale, NY – to SuperCenters. A new SuperCenter is planned for Yaphank, NY (Suffolk County) but isn’t expected to open until 2023. The “Bentonville Behemoth’s” increased revenue was greatly aided by its continued investment in e-commerce, expanding its curbside service, adding dozens of micro-fulfillments center (attached to their stores) and expanding its home delivery options, partially by launching a new e-commerce unit, Walmart+. Annual extrapolated food and drug sales for its 171 stores in the region are estimated at $5.75 billion, up from $5.30 billion last year.
Walgreens (Duane Reade) remained the highest per-store volume leader among all drug chains in the market. Now operating 768 stores in the $109.4 billion region, Walgreens produced estimated annual sales of $5.02 billion.
Costco opened one new store in Cherry Hill, NJ over the past year and continued to be the per- store average volume leader among all retailers in our entire market study. Comp store sales were also excellent during our measuring period. And the Issaquah, WA-based club merchant continues to produce some of the highest same store revenue numbers even as pandemic-driven sales begin to normalize. Costco’s annual extrapolated annual sales are estimated at $4.75 billion at its 50 stores.
Gaining significant ground over the past year was Albertsons Mid-Atlantic division, which was newly formed in September 2020 when Acme and Safeway’s-Eastern division were rolled up to create the new business unit (distribution functions were also consolidated to Albertsons mechanized warehouse in Denver, PA). In the new alignment, former Safeway-Eastern president Tom Lofland became senior VP-merchandising and marketing and Jim Perkins, who was Acme’s president, remained in place with newly expanded duties. Earlier this year, Albertsons also acquired 27 Kings and Balducci’s stores of which 23 stores are in the FTN market. Because of excellent in-stock conditions during the height of the pandemic, the new unit, particularly its Acme stores, enjoyed some of the strongest comp sales of any retailer in the survey. Sales this year for its 179 stores rose to $4.65 billion.
Ranking ninth is the leading wholesaler serving Metro New York independent retailers (that is not a co-op), Krasdale, which supplied the most stores in the market (552 – mostly in the five boroughs of New York City). Those stores rang up annual retail sales of $4.45 during the 12-month measuring period. The privately-held wholesaler supplies such independent banners as AIM, Bravo, C-Town, Market Fresh, Stop1 and Shop Smart.
And for the first time, Target cracked the top 10 in our annual market survey. The aggressive Minneapolis-based mass merchant achieved among the best comparable store sales in the entire survey and also opened six new stores, most of which were its smallish urban model. Extrapolated estimated annual sales for Target’s 168 stores were $3.72 billion.
Other retailers that topped the $1 billion mark in annual sales in the region included BJ’s (78 stores with extrapolated annual sales of $3.59 billion); Key Food (293 stores with annual sales of $3.36 billion); Wawa (534 stores with annual sales of $3.13 billion); Rite Aid (681 stores, estimated annual sales of $2.80 billion); Whole Foods, including Amazon Go, which operated 68 units, good for estimated annual sales of $2.57 billion; Weis Markets (110 stores, annual sales of $2.49 billion; 7-Eleven (1,020 c-stores, estimated annual volume $2.2 billion); ASG (213 stores, annual sales of $1.9 billion); Wegmans (26 stores whose estimated annual revenue was $1.86 billion); Trader Joe’s (56 stores, estimated annual volume of $1.43 billion); Aldi (155 discount units whose estimated annual sales reached $1.34 billion); and Allegiance/Foodtown (111 stores with annual sales of $1.32 billion).
By class of trade, the leaders are: supermarkets – ShopRite/Price Rite/Fresh Grocer et al (278 stores, $16.57 billion in estimated annual retail sales); clubs – Costco (50 stores, $4.75 billion in estimated extrapolated annual sales); mass – Walmart (171 stores, $5.75 billion in estimated extrapolated annual sales); drug – CVS (1,300 stores and $6.34 billion in estimated annual sales); and convenience stores – Wawa (534 stores and $3.13 billion in annual revenue).
Personnel changes over the past 12 months include Karen Lynch replacing the retired Larry Merlo as CEO of parent firm CVS Health and Neela Montgomery being named president of its drug store division. At rival Walgreens Boots Alliance, former Sam’s Club and Starbucks executive Rosalind Brewer was brought in as CEO replacing veteran Stefano Pessina who became executive chairman of the board. At BJ’s, Bob Eddy was named chief executive following the untimely passing of Lee Delaney earlier this year. Chris Baldwin remains executive chairman. Lidl named Michal Lagunionek as its newest CEO-U.S., following the resignation of Johannes Fieber. Lagunionek becomes the fourth U.S. chief executive since the German discounter announced it planned to open stores in this country in 2015. At Krasdale, industry veteran Gus Lebiak was elevated to president and COO of the White Plains, NY-based firm, replacing the retired Steve Silver. Charles Krasne remains chairman and CEO of the family-owned company.
In industry news, as mentioned earlier, Albertsons combined its Safeway-Eastern and Acme Markets divisions into its newly created Mid-Atlantic unit which now encompasses both chains as well as the Kings and Balducci’s banners. The new operating unit oversees more than 300 stores and nearly $7 billion in annual sales. And earlier this year, long-time grocery industry leaders Joe Garcia and Zulema Wiscovitch acquired control of the Associated Supermarket Group (ASG) from private equity firm AUA Private Equity Partners which is led by ex-Goya executive Andy Unanue. In February, the two largest chains based in upstate New York – Price Chopper and Top’s Friendly Markets – announced they would merge in a deal that formed a new entity with approximately 300 stores and about $6.2 billion in annual sales. And way back to June 2020, Stop & Shop and King Kullen announced they would terminate their proposed merger agreement after 18 months of stalled negotiations.
Viewed as a group, the 74 chains and independents operating in the grocery, club, mass, drug and c-store channels operated 8,830 stores and accrued $106.98 billion in annual sales in the Food Trade News marketing region, good for 97.8 percent of the region’s $109.4 billion food and drug market.
You can access the entire Market Study issue of Food Trade News here.