What Product Categories Generate Most Volume In A Grocery Store?

Answer by Bruce Weitz, Former CEO of Kings Supermarkets, Duane Reade Drugstores, Grossman’s Home Centers, Today’s Man Menswear Superstores, and First National Supermarkets and currently an Advisory Board Member and portfolio company Board member to multiple Private Equity firms.

The “average” supermarket in the US generates about $15-$20 Million in revenues per year, although, depending on store size, focus, competition, and strategy/execution,  the annual revenues can be as low as $5M to over $50M.

Generally, the average supermarkets “cutout” of total sales breaks down as 50% in grocery (the stuff in the aisles and on displays), 15% in dairy and frozen foods, 10%+ in produce/floral, 10% in meat, 4% in deli and fresh bakery,b and the balance in general merchandise/health & beauty care/Rx and wine/liquor and beer (where available by state laws). These are averages and are influenced significantly by the strategy being executed by the store or chain. For example, Whole Foods and Fairway have a more significant focus on fresh foods where price impact chains on the other end of the spectrum (Aldi, Sav-a-lot) have most of the revenues in grocery packaged goods.

To read the rest of the story, please go to: Forbes