Shopping Centers Today

FEB 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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raditional supermarkets on both sides of the atlantic are losing market share, thanks to a rapidly advancing horde of com- petitors seeking to outdo them on price, convenience and quality, experts say. "Whereas once consumers bought all their groceries at one location, this is no lon- ger the case. Consumers are now splitting their grocery shopping across multiple channels — as many as five," wrote Jll analysts in the firm's retail shop topic report published last september. "by 2018, traditional supermarkets' share of gro- cery dollars [in the u.s.] will have shrunk 300 basis points to 37.2 percent." T market share Discounters anD other innovators are turning the global supermarket inDustry on its heaD By Joel Groover F e b r u a r y 2 0 1 5 / S C T 33 rivals of all types and sizes surround these chains. the list of competitors includes massive wholesale clubs and supercenters; fresh grocers focused on perishables and ethnic foods; a new breed of small-format stores in closer proximity to shoppers' homes and geared toward faster, easier shopping; and thousands of food-focused dollar stores, drugstores and convenience stores. mean- while, online sales are gaining momentum, as the likes of amazon.com's prime pantry, freshdi- rect, Google express, instacart and peapod roll out grocery delivery services in major markets. in the u.k. the highly efficient German grocers aldi and lidl are wooing droves of customers from mainline rivals such as tesco, sainsbury's and morrisons, says Joseph bona, president of branded environments at CbX, a global brand agency and retail design consultancy. "aldi and lidl are going like gangbusters in the united kingdom," he said. "their motto used to be 'stack it high and sell it,' but now they're offering a better customer experience and higher quality without sacrificing competitiveness on price. they pose a serious threat." these German chains aim to challenge u.s. supermarkets as well: aldi already has 1,300 stores in the u.s., bona notes, and could have as many as 2,000 there by 2018. lidl is preparing to

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