Dive Brief:
- Data from the National Retail Federation shows Albertsons, Sprouts Farmers Market and Southeastern Grocers are the fastest-growing retail companies in the U.S,reports Retail Info Systems.
- Albertsons, Sprouts and SE Grocers have seen five-year annual sales growth of 74.1%, 47.4% and 34.6%, respectively.
- Albertsons, with more than $60 billion in revenue, is rumored to be looking to purchase organic and natural food retailersWhole FoodsorSprouts Farmers Market.
Dive Insight:
在一个拥挤的,increasingly competitive grocery space, growth is a major measure of a retailer's success. This can be achieved through store remodels, new location openings, the introduction of new formats like c-stores, grocerants and mergers and acquisitions.
此事,增长最快的美国零售商,is looking to expand its reach by making deals. Most recently, the grocer's Jewel Food Stores businessoffered to buy 19 Strack & Van Til storesfor $70 million, plus an additional $30 million for inventory, in a court-led bankruptcy auction.
By acquiring these stores, Jewel-Osco — and parent company Albertsons — will be able tostrengthen its presence in the Midwest marketand better compete with discount grocers. Albertsons also has been rumored to be interested inbuying Whole FoodsandSprouts Farmers Market, purchases that would bolster its natural and organic offerings and give it access to a new base of loyal consumers.
Strategic acquisitions —highlighted by its2014 acquisition of Safewayfor more than $9 billion —are what has pushed Albertsons to the front of the grocery pack, vaulting it above some of the struggles the industry is facing. In the past five years, the retail chain went from 200 stores and $4 billion in sales tomore than 2,300 stores and $60 billion in annual sales. In its Q4 earnings report, the company said it will complete around 150 upgrade and store remodel projects while opening 15 new locations this year.
Sprouts also has seen healthy growth, andwill build 32 new locations this year, expanding a retail footprint that already boasts over 260 stores across 15 states. Southeastern Grocers, on the other hand, has seen some bumps in its road to expansion. The retailerwill close 20 stores in its Winn-Dixie and Harvey's businesses, and is reportedly in talks to refinance its debt. It will be interesting to see if this news is nothing more thana hiccup in its strategy, or if it's indicative of further declines.
