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The supercenter
continues to be the most dynamic force in retailing today. Domestic
supercenter sales reached $252.4 billion in 2009, a 4.2% increase
over 2008 and a 13.4% increase over 2007. Were it not for Walmart
there would be no supercenter industry. In 2009, Walmart increased
its share to 85.5% on sales of $215.9 billion through 2,747 stores.
Average sales per store were $78.6 million.
2008
and 2009 continued to be exceptional years for supercenters largely
as a result of Walmart that opened 300 new units or a 12.3% increase
in its total domestic store count. However, in 2009 Walmart supercenter
construction slowed to 135 new units. Super Target stores increased
5.0% to 251 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 built on the experience
of Fred Meyer. Kroger had 181 supercenters operating under five
brands by the end of 2009.
Of
course, the disappointment of Kmart has hurt the growth of the Super
Kmart concept with store counts down to 35 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 Walmart building new
distribution centers in the West and the entry into California with now
41, exceeding the original target of 40, supercenters.
Supercenter Industry [chart]
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