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| Supercenter Industry Overview • 2008 |
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The supercenter continues to be the most dynamic force in retailing today. Domestic supercenter sales reached $242.0 billion in 2008, a 10.9% increase over 2007 and a 16.2% increase over 2006. Were it not for Wal-Mart there would be no supercenter industry. In 2008, Wal-Mart increased its share to 84.8% on sales of $205.3 billion through 2,612 stores. Average sales per store were $78.6 million. 2007 and 2008 continued to be exceptional years for supercenters largely as a result of Wal-Mart that opened 356 new units or a 16% increase in its total domestic store count. However, in 2008 Wal-Mart supercenter construction slowed to 165 new units. Super Target stores increased 13.8% to 239 units as Target assimilates the supercenter concept into its discount store division with a new aggressiveness. Target is also now opening food distribution centers. With the opening of Kroger Marketplace stores in 2005, it appears that the company is beginning to embrace the supercenter concept build on the experience of Fred Meyer. Kroger had 170 supercenters operating under five brands by the end of 2008. Of course, the disappointment of Kmart has hurt the growth of the Super Kmart concept with store counts down to 46 domestic stores. Kmart's commitment to the supercenter concept is in doubt. The continued growth of Meijer, the renewed growth of Fred Meyer supercenters as a division of Kroger and a more aggressive Target are all helping to fuel the availability of supercenters to more consumers across the country. The West, not withstanding Fred Meyer in the Northwest, has been the last region of the country to be spared the expansion of the supercenter. But this changed with Wal-Mart building new distribution centers in the West, including an announced DC in Southern California to open in 2009 and the entry into California with now 35 of a original target of 40 supercenters.
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