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The supercenter
continues to be the most dynamic force in retailing today. Domestic
supercenter sales reached $222.6 billion in 2007, a 6.9% increase
over 2006 and a 23.4% increase over 2005. Were it not for Wal-Mart
there would be no supercenter industry. In 2007, Wal-Mart increased
its share to 84.8% on sales of $188.9 billion through 2,447 stores.
Average sales per store were $77.1 million.
2005
and 2006 continued to be exceptional years for supercenters largely
as a result of Wal-Mart that opened 585 new units or a 35% increase
in its total domestic store count. However, in 2207 Wal-Mart supercenter
construction slowed to 191 new units. Super Target stores increased
15.4% to 210 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 163 supercenters operating under five
brands by the end of 2007.
Of
course, the disappointment of Kmart has hurt the growth of the Super
Kmart concept with store counts down to 54 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.
Supercenter Industry [chart]
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