Grocery industry more competitive now
SUNBURY – Most shoppers out looking for groceries, don’t think about the highly complex, ultra competitive and the massive industry that is the grocery business. The three billion dollars in sales at Weis Markets last year is helping to push a major driver of the economy, and ironically, one of the first to suffer when the economy slows.
All of this was talked about today on the WKOK live telephone talk show On The Mark, when an experienced journalist of the grocery industry was interviewed. Jon Springer of Supermarketnews.com, said ‘cautious consumers’ are making the modern supermarket industry struggle a bit.
“One of the issues facing the entire supermarket industry, is the fact that so many other outlets are also selling food today,” Springer said. “Typically now, people will buy some things at a dollar store, some things at a mass merchant like Wal-Mart, some things at the drug store, some things at the supermarket, and maybe they’ll eat out some days.”
Springer says the economy is also plaguing the supermarket industry, “Supermarkets tend to do better with a good economy. They index pretty well with the employment numbers. So, when unemployment is low, supermarkets tend to do better. The job numbers have been very sluggish to improve in the past few years, so that is keeping supermarkets down along with it. It’s very hard to gain sales in this kind of a market.”
Springer was a guest on WKOK’s On The Mark program Monday. You can learn more about the modern grocery industry by downloading that program at WKOK.com. You can also read his articles at Supermarketnews.com. (Codi Jade)