Add another sector to the list: the grocery store sector. After more than a decade of building bigger and bigger stores (and superstores) retailers are experimenting with considerably smaller grocery stores that feature prepared meals in gourmet delis, and fresh produce, The New York Times reported Wednesday.
Safeway Inc. (NYSE: SWY) has opened a smaller-format store in Southern California, Jewel-Osco is building one in Chicago and Whole Foods Market, Inc. (NYSE: WFMI) is considering opening smaller stores, The Times reported.
Grocery stores: function guides form
Economist Glen Langan said two factors are converging to force a shift in consumers' habits, and ultimately, in how groceries are purchased.
"In the 1990s we had the heightening of time pressures, the norm of the two-earner household, with less time available for each task. In this decade, high gasoline prices have made groceries and goods closer to home more attractive," Langan said. "The result is smaller grocery stores with fewer items overall, but with more items that fit the two-earner, time-pressed home, and more 'local' markets." Consumers still will have an array of food choices at typical grocery stores, he added, it's just that the gourmet deli sections will be more-prominent.
Further, American cities/towns will see more 'local' markets, although some may have less obvious openings than others, Langan said. Langan recited the transition of one neighborhood sandwich shop/coffee house in his Fairfield County, Connecticut home town. The sandwich shop first experimented with adding a few 'convenience store' items – such as bread, eggs, and milk. Then the large seating area for coffee drinkers was first reduced, then eliminated, replaced by grocery shelves, he said, with the deli later upgraded to a gourmet deli.
Advanced Micro Devices rallies after settling Intel tiff
United Technologies fires up a deal with GE
Cramer on BloggingStocks: Not much time left for downside 
Reader Comments (Page 1 of 1)
9-11-2008 @ 6:10AM
al coholic said...
I like the trend to use more locally grown goods. Local farmers are less likely to poison their customers with illegal pesticides than farmers hundreds or thousands of miles away. I stay away from most foreign grown foods and use the local farmers market as much as possible.
Another change I've noticed lately is that people seem less inclined to pay exhoritant prices for imported food items that are out of season here. A lot of that stuff rots before it gets sold.
9-18-2008 @ 11:52AM
wrkfrfood1 said...
Agreed, small local farmers market stands are making a HUGE comeback as the food supply returns to sustainable local formats. Expect more victory gardens, community gardens, school gardens and home gardens. Even potted container food and herb gardens are increasing. Not to mention farm to school programs and CSA's.