NEW COMPETITION FOR SUPERMARKETS: A CASE STUDY

Abstract

Non-traditional retailers such as warehouse club stores, discount drug stores, and discount mass merchandisers are new competitors for traditional food retailers. It is expected that non- traditional retailers will account for roughly 14 percent of total grocery sales by the turn of the century. The impact of a particular discount mass merchandiser (Wal-Mart) on the sales of a conventional retail grocery outlet (David's Supermarket, Inc.) located in the rural areas surrounding the Dallas/Ft. Worth metroplex is analyzed in this case study. In this case study, Wal-Mart alone is responsible for about a 17 percent reduction in sales.