Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.
Regina has three events coming up that she needs to shop for: a graduation party she is hosting, a quiet Saturday evening meal for her and her boyfriend, and a quick road trip with a girlfriend. Rather than shopping at one store, Regina has decided that she can make the best use of her time and money targeting each event with a specific kind of food retailer. Food retailers are places that consumers can buy food and take it off-site, compared to restaurants where food is consumed on-site.
Let's take a look at the different types of food retailers and see which will be the best fit for each of Regina's events.
1. Conventional supermarkets: Conventional supermarkets are your basic community grocery stores or supermarkets offering a range of food items, including produce, canned goods and meat, and a smaller, less robust amount of non-food items, such as school supplies or over-the-counter medications. Conventional supermarkets maintain low profit margins, relying on a large sales volume to earn a profit. Kroger, Sprouts, HEB and Whole Foods are names of conventional supermarkets you might recognize.
 |
A conventional supermarket would be a good choice for Regina's quiet weekend meal with her boyfriend, since she can get everything she needs to cook with in one quick trip.
2. Limited assortment supermarkets: Like its big brother, the conventional supermarket, the limited assortment supermarket offer food goods, but in reduced volume and at a lower price. This type of model offers a more efficient approach to the big supermarket and passes on the savings to its customers. Aldi and Save-A-Lot are the two most common limited assortment supermarkets available to shoppers in the U.S.
3. Supercenters: Supercenters are the ultimate in one-stop shopping, combining a full-sized grocery store or supermarket with a full-sized general merchandise store all under one roof. Consumers can take care of all their food needs here, as well as find housewares, auto products, toys and clothing. Walmart is the most popular supercenter in today's market, but other contenders include Meijer and even some Target stores. Supercenters do not require memberships for consumers to walk their aisles and make purchases.
4. Warehouse clubs: Where supercenters don't require a membership, warehouse clubs do. Stores like Sam's Club, Costco and BJ's Wholesale are warehouse clubs, which offer bulk shopping at reduced prices. True to its name, a warehouse club is housed in a space reminiscent of a traditional warehouse - very large, with products often displayed in the shipping boxes delivered by manufacturers.
For Regina, a warehouse club might be her best choice for the graduation party she is hosting, since she needs large quantities of different foods to accommodate her numerous guests.
5. Convenience stores: Convenience stores are small grab-and-go type establishments that you can find on the corner in many neighborhoods. When you think of convenience stores, you may think of a glorified gas station, because that's exactly what it is. A convenience store is typically attached to, or part of, a gas station, but may include a small assortment of food items such as bread, eggs and milk, as well as a host of other benefits like a coffee bar, snack shop and fountain drink station.
Popular convenience stores, a good choice for Regina's road trip with her girlfriend, include QuikTrip, 7-Eleven and Sheetz.
 |
In the past few decades, the food retailer market has shifted dramatically. What used to be simple, mom-and-pop type operations in small communities have been overtaken by the presence of larger, more centralized supercenters. But, limited assortment supermarkets are experiencing newfound popularity as consumers look to trim grocery costs and make more budget-friendly choices.
Perhaps the single biggest change to the food retailer landscape in the past few years can be summed up in one word: technology.
Today, technology has empowered shoppers more than ever before. Customers are able to search store shelves, compare prices, even order groceries for pick-up or delivery, all from the convenience of a smartphone or mobile device. Retailers are also embracing technology in the food space by marketing products and services such as curbside pick-up and digital coupons to their customers.
The line between online and offline shopping has been blurred so much that consumers now expect an equally simple experience, whether they are browsing store shelves or browsing a retailer's website. Technology has also boosted the significance of customer reviews, where total strangers rely on word-of-mouth marketing and opinions of others in making their purchases.
Mobile technology, in particular, has shifted the way consumers look for most anything. Retailers like Target have apps that offer exclusive discounts, while shoppers can pinpoint the exact location of a product inside a Walmart, all while walking through that particular store. Some food retailers are now experimenting with a concept of tallying your bill as you shop, thereby eliminating the need for checkout lanes at the front of the store.
Online retailers are also entering this market. Amazon, while not exclusively a food retailer, has implemented a technology called a Dash Button, which allows customers to order more of anything from soda to toilet paper with just the press of a button. Items are then shipped directly to the shopper.
Social media also plays a large role in how food retailers market today, a move away from more traditional methods of advertising such as television commercials or newspaper circulars. Fan pages and specialized communities on social media help spread the word about supermarket and supercenter products, with very little effort on the part of the retailer or manufacturer.
Today's shoppers have myriad options for purchasing from food retailers: Conventional supermarkets, limited assortment supermarkets, supercenters, warehouse clubs and convenience stores. These options range from a traditional grocery store setting to a membership-based bulk shopping experience to a neighborhood corner store. Food retailers over the past few years have been influenced by shifts in technology, allowing consumers to use their mobile devices to make shopping easier, check customer reviews and even order groceries for delivery.
To unlock this lesson you must be a Study.com Member.
Create your account
Already a member? Log In
BackAlready registered? Log in here for access
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Back To Course
Business 203: Introduction to Retail Merchandising11 chapters | 104 lessons
{{courseNav.course.topics.length}} chapters | {{courseNav.course.mDynamicIntFields.lessonCount}} lessons | {{course.flashcardSetCount}} flashcard set{{course.flashcardSetCoun > 1 ? 's' : ''}}
Watch 5 minute video clips, get step by step explanations, take practice quizzes and tests to master any topic.
Study.com has a library of 750,000 questions and answers for covering your toughest textbook problems
I love the way expert tutors clearly explains the answers to my homework questions. Keep up the good work!
- Maritess, College StudentStudy.com video lessons have helped over 30 million students.
"I learned more in 10 minutes than 1 month of chemistry classes"
- Ashlee P.
"I learned more in 10 minutes than 1 month of chemistry classes"
- Ashlee P.
"I aced the CLEP exam and earned 3 college credits!"
- Clair S.
Over 65 million users have prepared for {{displayNameByProductKey[registrationData.product || testPrepCocoon]}} and other exams on Study.com
"The videos have changed the way I teach! The videos on Study.com accomplish in 5 minutes what would take me an entire class."
- Chris F.
Over 65 million users have prepared for {{displayNameByProductKey[registrationData.product || testPrepCocoon]}} and other exams on Study.com
