Dominick’s Demise Led To Boom, Now Chicago Grocers Face Reality: New Rivals, Online Shift

The mad dash for your grocery dollars, triggered by the 2014 Dominick's closing that left 72 stores up for grabs, is just now slowing to a crawl.

Jewel-Osco and Mariano's, which collectively hold more than 30 percent of the market share in the Chicago area, plan to open a combined five stores this year. But with much of the prime real estate already snatched up, there are fewer opportunities for grocery stores to expand.

Competition will remain fierce. As in markets across the country, Chicago grocery stores are facing steep economic challenges to survive. Some of those challenges, like deflationary food prices, are cyclical and taken in stride. But in an increasingly fragmented industry, shoppers are buying their food from a variety of retailers, including drug and dollar stores.

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