According to a report published by the Gerson Lehrman Group, we will see a dramatic decline in the number of traditional grocers over the next 5-10 years, in large part due to the continued market share growth of Walmart and Target.
The report states that Walmart currently owns 33% of the grocery channel, and in 10 years may own 40%. It also projects that Target, whom they call “the new 800 pound gorilla in the room,” will reach 20% market share in 10 years. That means traditional grocers will soon be competing for a significantly smaller share of the market.
The conclusion reached by the report is nothing new; rather, it’s just another in a series of reports and predictions that the number of traditional supermarket operators will decline in the next decade.