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US Grocery - In the Bullseye

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November 2, 2017
Keith Jelinek, Rich Vitaro, and Rick Maicki
BRG Retail

A seismic shift is underway in the US grocery market. US grocery retailers are facing stiff challenges on multiple fronts. Evolving demographics and shifting consumer preferences have fragmented the business. Grocery sales, once the domain of traditional grocers, have shifted to include mass merchandisers and discount stores, club stores, specialty food retailers, and even e-commerce. Adding further angst to the situation for retail executives is the imminent threat of the “German Invasion” posed by Aldi and Lidl.

This paper is the first in a series of deep dives into the competitive threats poised to shift the US grocery landscape. We will examine current grocery retail market dynamics, changing consumer behavior, the potential impact of the incursion of German food retailers, and most important, what retailers can do to absorb the impact.

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