Is the grocery store bubble about to burst?
Orange County has witnessed an exciting grocery-shopping revolution. Numerous chains have flocked to the region, bringing new concepts to test – both big and small – as old-line operators reformat their existing full-service supermarkets.
Recent troubling news out of the grocery industry – Fresh & Easy closures; Haggen layoffs; the short life of Fresh Market in Laguna Hills; assorted closures by old-line grocers; and labor troubles at El Super – feel out of place in Orange County’s best job-creation economy since the turn of the century.
At a quick glance, groceries look like a great retail business because everybody needs the products, and market owners have yet to face serious online competition. This is a big-money business – a high-performing, full-sized grocery can gross more than $1 million a week – but with typically thin profit margins and a scary-high level of competition.
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