It is common knowledge that groceries are a very important part of the budget of most homes in the world. This means that the grocery budget cannot be completely eliminated. The only thing that we can do is to reduce the grocery budget when the economy and the finances are not good. So, it is not a surprise that Walmart has been continually increasing the amount and variety of foods in their general merchandise in the stores.
Walmart is one of the biggest grocery chains in America. The company has been in the grocery business since 1988 and its growth has not come as a welcome move to most of the supermarket chains in the country. At least 25% of the supermarkets were forced to close down because of the growth of Walmart. Walmart, over the years have been joined by other supermarket chains in the move of increasing their floor space for groceries. Other companies that have been trying to increase their floor space dedicated to groceries include Dollar Tree (DLTR) and Target (TGT). This move has involved increasing the number of freezers and refrigerators and increasing the number of stores.
Walmart is able to charge significantly lower prices to their customers compared to most of their competitors. This gives Walmart the power and ability to beat most of the top three competitors. The effects of the price cuts by Walmart are already being felt in the market. SuperValu has seen a decline in their store sales for the past three years. Safeway, on the other hand has seen its sales volume rise by a mere 1.6% in the past quarter. Kroger is also on the way as their sales volume is gradually declining.
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