Grocery Stores Losing Market Share As Discounters Expand Offering

Grocery stores are continuing to lose market share as discounters and dollar stores increase their fresh food offerings and focus on low prices, an analyst said Friday.

Grocery stores have been facing increased competition from a variety of competitors, including drugstores, that have begun to increase their food offerings. Wal-Mart Stores Inc., in particular, was the only retailer to gain market share in 2010, according to Citi Investment Research analyst Deborah L. Weinswig.

Wal-Mart shares slipped 40 cents to $53.22 during midday trading.

Supermarkets, meanwhile, were the "major losers," she said.

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