Posted on 01/30/2011 2:56:06 AM PST by Daisyjane69
The typical modern American supermarket stocks 48,000 items, each battling for precious shelf space. How do they get there? Why are they arranged the way they are? Did you know that some stores use heat maps to track which aisles you walk down — and which ones you don't? Or that they put the milk at the end of the aisle so you're forced to pass a hundred other items on your way to get it? It's all done to gain an edge in a cutthroat business built on razor-thin margins.
CNBC’s Tyler Mathisen goes behind the scenes for a fascinating look at today’s supermarket industry. It is the story of a crowded and brutal business generating half a trillion dollars in annual sales. Established brands like Safeway, Giant Eagle and Kroger are cultural icons as familiar as our own street names, but they are under constant attack from brilliant upstarts like Whole Foods, big box retailers like Wal-Mart and Costco, and from ever-changing public tastes. Go behind the familiar facade of your neighborhood market to see how it really works.
(Excerpt) Read more at cnbc.com ...
Logistics (and I don’t mean shipping a parcel via UPS).
Supermarket, Inc youtube clip -8 minutes
http://www.youtube.com/watch?v=TcO-plO4lro
Giant Eagle Market District: CNBC “Supermarkets Inc.” feature
Uploaded to YouTube by Giant Eagle.
Wow, did not know that. That is a loooooong time.
With certain exceptions. For example, a state law in Missouri mandates suppliers of agricultural commodities must be paid in 30 days.
A 6 month interest free loan.It’s good to be King.
“About 18 hours of food on the shelves of modern grocery stores in the bar code computer era. Americas just one 70’s like nationwide truckers strike from trouble IMO .”
TOTALLY, and they can keep it. I’m at roughly 6 months of food and 4 years of every other non-perishable I can think of (other than gasoline, as that’s not practical to store - but I do have some and as long I don’t drive I have plenty for cooking and hot water).
Others, I suspect, look at the always-stocked shelves at their supermarkets and the huge quantities at Sam’s Club and figure they can stop by, once things go south. They will have to learn things the hard way, I guess.
Another way to look at it...there is roughly one Sam’s Club for every 100,000 members in the United States. At any given moment in time, there may be about 100,000 rolls of toilet paper in a store. Well, that’s one roll per member. It will not take all that many members to snap up that toilet paper once things go south.
It is also on CNBC World.
Agree...same here. Year plus food supply on hand. Hunt fish an garden an 150 gal bed tanks on trucks. SHTF sn have to stay home we’re good for at least first 3 fire fights.
Stay Safe an Sage....
Really. Kroger, for fiscal years 2008, 2009, 2010 combined had revenue of about $223 billion. Net income was $2.5 billion.
It makes the case that the customer wins when companies compete.
Doesn't explain all the grocery stores going up. You would think they would be consolidating to increase profits.
I buy by my shopping list and clipped coupons. Unless they have something I have a coupon for and I can save more by buying it on my shopping day, it gets passed by. I shop by need, not what catches my eye.
I'm only showing the thin margins.
They don’t make their money on food.
They make their money on sundries. And on Valentines candy. And on impulse buying for stuff like batteries.
That kind of thing.
We found the 5 days a week statistic hard to believe - that's how many times they said the typical grocery store shopper goes in to a grocery store.
FYI, I recently found an excellent series of books to help guide Americans through the minefield of food and “food-like substances” in the supermarket and other places.
They are available at most bookstores, and are cheaper at Amazon.com where they are about 12 bucks a piece, if you buy 25 bucks worth the shipping is free.
The series is “Eat This Not That”.
I recommend “Supermarket Survival Guide, Eat This Not That” for tucking in your purse (ladies) while shopping. This book tells what is full of bad additives, and what can be purchased instead.
“Restaurant Guide,Eat This Not That” is an eye opener as to what crap is in food at chain restaurants. The book warns of the worst and tells the best of what is offered at restaurants, so we can make informed choices and avoid gross fat laden, sodium laden concoctions.
For entertainment, I also bought “Best and Worst Foods” edition. It reads like a horror show. Fascinating what garbage some food retailers will offer to the public. Again, on one page is the worst, opposite page is a much better alternative.
The first book I got is general info covering some of the supermarket, some restaurant and other topics, it is “Eat This Not That, The No-Diet Weight Loss Solution”. It is a nice introduction to the series, but if I could do it again, I’d probably skip this one since the info is in the other 3 books I now have.
Just search Amazon for “Eat This Not That” and all the offerings will appear. They are all an easy and interesting read.
I live in Corpus Christi, Texas where the growing conditions fruits and vegetable are not the best, but I have relatives in East, central Texas where they grow the most delicious peaches, plums, watermelons and tomatoes you can imagine.
These you get in the supermarkets taste like cardboard.
Why?
Why can’t the supermarkets use the farmers here and get this delicious produce to the supermarkets while it still has some taste?
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