From Wikipedia, the free encyclopedia
This article is about the type of food store.
For the 2006 comic Supermarket, see .
For the album, see .
This article has multiple issues. Please help
or discuss these issues on the .
This article needs additional citations for . Please help
by . Unsourced material may be challenged and removed. (July 2010)
The examples and perspective in this article may not represent a
of the subject. Please
and discuss the issue on the . (October 2010)
section in a supermarket
aisles in a
A supermarket, a large form of the traditional , is a
offering a wide variety of
and household products, organized into aisles. It is larger in size and has a wider selection than a traditional grocery store, but is smaller and more limited in the range of merchandise than a
The supermarket typically comprises , fresh , , and baked goods aisles, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as kitchenware, household cleaners, pharmacy products and
supplies. Some supermarkets also sell a variety of other household products that are consumed regularly, such as alcohol (where permitted), , and , and some stores sell a much wider range of non-food products: DVDs, sporting equipment, board games, and seasonal items (e.g., Christmas wrapping paper in December).
The traditional supermarket occupies a large amount of floor space, usually on a single level. It is usually situated near a residential area in order to be convenient to consumers. The basic appeal is the availability of a broad selection of goods under a single roof, at relatively low prices. Other advantages include ease of parking and frequently the convenience of shopping hours that extend into the evening or even 24 hours of day. Supermarkets usually allocate large budgets to advertising, typically through newspapers. They also present elaborate in-shop displays of products. The shops are usually part of corporate
that own or control (sometimes by ) other supermarkets located nearby—even transnationally—thus increasing opportunities for .
Supermarkets typically are supplied by the
of their , usually in the largest city in the area. Supermarkets usually offer products at relatively low prices by using their buying power to buy goods from manufacturers at lower prices than smaller stores can. They also minimise financing costs by paying for goods at least 30 days after receipt and some extract credit terms of 90 days or more from vendors. Certain products (typically
and ) are very occasionally sold as , that is, with negative
so as to attract shoppers to their store. There is some debate as to the effectiveness of this tactic. To maintain a , supermarkets make up for the lower margins by a higher overall volume of sales, and with the sale of higher-margin items bought by the intended higher volume of shoppers. Customers usually shop by placing their selected merchandise into
(trolleys) or baskets (self-service) and pay for the merchandise at the . At present, many supermarket chains are attempting to further reduce
by shifting to
machines, where a single employee can oversee a group of four or five machines at once, assisting multiple customers at a time.
A larger full-service supermarket combined with a
is sometimes known as a . Other services offered at some supermarkets may include those of , , , , ,
This section needs additional citations for . Please help
by . Unsourced material may be challenged and removed. (July 2010)
A supermarket in Sweden in 1941
Consumers shopping for fresh produce and fruit.
In the early days of retailing, all products generally were fetched by an assistant from shelves behind the merchant's counter while customers waited in front of the counter and indicated the items they wanted. Also, most foods and merchandise did not come in individually wrapped consumer-sized packages, so an assistant had to measure out and wrap the precise amount desired by the consumer. This also offered opportunities for social interaction: many regarded this style of shopping as "a social occasion" and would often "pause for conversations with the staff or other customers." These practices were by nature very
and therefore also quite expensive. The shopping process was slow, as the number of customers who could be attended to at one time was limited by the number of staff employed in the store.
The concept of an inexpensive food market relying on large economies of scale was developed by . He founded the Astor Market in 1915, investing $750,000 of his fortune into a 165' by 125' corner of 95th and Broadway, , creating, in effect, an open air mini-mall that sold meat, fruit, produce and . The expectation was that customers would come from great distances ("miles around"), but in the end even attracting people from ten blocks away was difficult, and the market folded in 1917.
The concept of a self-service grocery store was developed by
stores. His first store opened in 1916. Saunders was awarded a number of
for the ideas he incorporated into his stores. The stores were a financial success and Saunders began to offer franchises. , which was established in 1859, was another successful early grocery store chain in
and the United States, and became common in North American cities in the 1920s. The general trend in retail since then has been to stock shelves at night so that customers, the following day, can obtain their own goods and bring them to the front of the store to pay for them. Although there is a higher risk of , the costs of appropriate security measures ideally will be outweighed by reduced labor costs.[]
Early self-service grocery stores did not sell fresh meats or produce. Combination stores that sold perishable items were developed in the 1920s.
Historically, there was debate about the origin of the supermarket, with King Kullen and
having strong claims. Other contenders included Weingarten's Big Food Markets and Henke & Pillot. To end the debate, the
in conjunction with the
and with funding from , researched the issue. It defined the attributes of a supermarket as "self-service, separate product departments, discount pricing, marketing and volume selling."[]
It has been determined that the first true supermarket in the United States was opened by a former
employee, , on 4 August 1930, inside a 6,000-square-foot (560 m2) former garage in
in . The store, , operated under the slogan "Pile it high. Sell it low." At the time of Cullen's death in 1936, there were seventeen King Kullen stores in operation. Although Saunders had brought the world self-service, uniform stores and nationwide marketing, Cullen built on this idea by adding separate food departments, selling large volumes of food at discount prices and adding a parking lot.
advertisement from the 1950s
Other established American grocery chains in the 1930s, such as Kroger and
at first resisted Cullen's idea, but eventually were forced to build their own supermarkets as the economy sank into the , while consumers were becoming price-sensitive at a level never experienced before. Kroger took the idea one step further and pioneered the first supermarket surrounded on all four sides by a .[]
Supermarkets proliferated across Canada and the United States with the growth of automobile ownership and
after . Most North American supermarkets are located in suburban
as an anchor store along with other smaller retailers. They are generally regional rather than national in their company . Kroger is perhaps the most nationally oriented supermarket chain in the United States but it has preserved most of its regional brands, including , , , , , and .[]
Pyatorochka supermarket in Moscow, Russia
In Canada, the largest such chain is , which operates stores under a variety of regional names, including , , , the Real Canadian Superstore, and the largest, , (named after the company itself).
is Canada's second largest supermarket with locations across the country, operating under many banners (Sobeys IGA in ).[] Québec's first supermarket opened in 1934 in Montréal, under the banner .
In the United Kingdom, self-service shopping took longer to become established. Even in 1947, there were just ten self-service shops in the country. In 1951, ex- sailor Patrick Galvani, son-in-law of
chairman, made a pitch to the board to open a chain of supermarkets across the country. The UK's first supermarket under the new
brand opened in , , taking ten times as much per week as the average British general store of the time. Other chains caught on, and after Galvani lost out to Tesco's
in 1960 to buy the 212 Irwin's chain, the sector underwent a large amount of consolidation, resulting in 'the big four' dominant UK retailers of today: ,
(owned by ),
In the 1950s, supermarkets frequently issued
as incentives to customers. Today, most chains issue store-specific "membership cards," "club cards," or "". These typically enable the card holder to receive special members-only discounts on certain items when the credit card-like device is scanned at check-out.[] Sales of selected data generated by clubcards is becoming a significant revenue stream for some supermarkets.
Traditional supermarkets in many countries face intense competition from
such as Wal-Mart, and
in the UK, which typically are non- and operate with better buying power. Other competition exists from
that offer savings to customers buying in bulk quantities. , such as those operated by
and Asda, often offer a wide range of goods and services in addition to foods. The proliferation of such warehouse and superstores has contributed to the continuing disappearance of smaller,
increase suburban sprawl because of the necessity for large floorspace and increased vehicular traffic. Some critics consider the chains' common practice of selling loss leaders to be anti-competitive. They are also wary of the negotiating power that large, often
retailers have with suppliers around the world.[]
There has been a rapid transformation of the food retail sector in developing countries, beginning in the 1990s. This applies particularly to Latin America, South-East Asia, China and South Africa. However, growth is being witnessed in nearly all countries. With growth, has come considerable competition and some amount of consolidation. The growth has been driven by increasing affluence and the ri the entry of wome with a consequent incentive to seek out easy-to- the growth in the use of refrigerators, making it possible to shop wee and the growth in car ownership, facilitating journeys to distant stores and purchases of large quantities of goods. The opportunities presented by this potential have encouraged several European companies to invest in these markets (mainly in Asia) and American companies to invest in Latin America and China. Local companies also entered the market. Initial development of supermarkets has now been followed by hypermarket growth. In addition there were investments by companies such as
in large-scale
operations.
While the growth in sales of processed foods in these countries has been much more rapid than the growth in fresh food sales, the imperative nature of supermarkets to achieve economies of scale in purchasing, means that the expansion of supermarkets in these countries has important repercussions for small farmers, particularly those growing perishable crops. New supply chains have developed
development of spe leading farme and farmer associations or cooperatives. In some cases supermarkets have organized their own procuremen in others
have adapted to meet supermarket needs.
supermarket in , .
supermarket front end
on display in a supermarket in .
supermarket
Larger supermarkets in
typically sell a great number of items among many brands, sizes and varieties, including:
(as / and/or local laws allow)
and baby-care products such as
Breads and
products (many stores may have a bakery on site that offers specialty and dessert items)
, , and , including
Bulk dried foods such as , , , etc. (typically available for self-service)
(including )
products (as // and/or local laws allow)
foods (ready-to-eat)
Electrical products such as , , etc.
Financial services and products such as , , , , etc. (typically offered in-store by a partnering bank or other )
and crushed ice
Fresh produce, fruits and
House-cleaning products
Housewares,
and , etc. (typically limited)
products such as , fabric softeners, etc.
tickets (where operational and legal)
items (typically limited)
(some stores may offer live fish and seafood items from
Medicines and
items (primarily , although many supermarkets also have an on-site pharmacy) (as // and/or local laws allow)
Nonalcoholic beverages such as , , , etc. (some stores may have a
that prepares ready-to-drink freshly squeezed juices, , etc.)
Personal hygiene and grooming products
Pet foods and products
Seasonal items and decorations
(some stores may have a commercial-style , typically available for self-service, and/or a staffed
that prepares ready-to-drink coffee and tea beverages)
In some countries, the range of supermarket merchandise is more strictly focused on food products, although the range of goods for sale is expanding in many locations as typical store sizes continue to increase globally.
store, Kroger of the Villages, in
While branding and store advertising will differ from company to company, the layout of a supermarket remains virtually unchanged. Although big companies spend time giving consumers a pleasant shopping experience, the design of a supermarket is directly connected to the in-store marketing that supermarkets must conduct in order to get shoppers to spend more money while there.
Every aspect of the store is mapped out and attention is paid to colour, wording and even surface texture. The overall layout of a supermarket is a visual merchandising project that plays a major role in retailing. Stores can creatively use a layout to alter customers’ perceptions of the atmosphere. Alternatively, they can enhance the store’s atmospherics through visual communications (signs and graphics), lighting, colours, and even scents. For example, to give a sense of the supermarket being healthy, fresh produce is deliberately located at the front of the store. In terms of bakery items, su-permarkets usually dedicate 30 to 40 feet of store space to the bread aisle.
Supermarkets are designed to "give each product section a sense of individual difference and this is evident in the design of what are called th fresh produce, dairy, delicatessen, meat and the bakery". Each section has different floor coverings, style, lighting and sometimes even individual services counters to allow shoppers to feel as if there are a number of markets within this one supermarket.
Exterior of a supermarket in , , .
Marketers use well researched techniques to try to control purchasing behaviour. The layout of a supermarket is considered by some to consist of a few rules of thumb and three layout principles. The high-draw products are placed in separate areas of the store to keep drawing the consumer through the store. High impulse and high margin products are placed in the most predominant areas to grab attention. Power products are placed on both sides of the aisle to create increased product awareness, and end caps are used to receive high exposure of a certain product whether on special, promotion or in a campaign, or a new line.
The first principle of layout is circulation. Circulation is created by arranging product so the supermarket can control the traffic flow of the consumer. Along this path there will be high-draw, high-impulse items that will influence the consumer to purchase which he or she did not intend. Service areas such as rest rooms are placed in a location which draws the consumer past certain products to create extra buys. Necessity items such as bread and milk are found at the rear of the store to increase the start of circulation. Cashiers' desks are placed in a position to promote circulation. The entrance will be on the right-hand side because research has shown that consumers who travel in a counter-clockwise direction spend more.
The second principle of layout is coordination. Coordination is the organised arrangement of product that promotes sales. Products such as fast-selling and slow-selling lines are placed in strategic positions in aid of the overall sales plan. Managers sometimes place different items in fast-selling places to increase turnover or to promote a new line.
The third principle is consumer convenience. The layout of a supermarket is designed to create a high degree of convenience to the consumer to make the shopping experience pleasant. This is done through the character of merchandising and product placement. There are many different ideas and theories in relation to layout and how product layout can influence the purchases made.
One theory suggests that certain products are placed together or near one another that are of a similar or complementary nature to increase the average customer spend. This strategy is used by retailers to create cross-category sales similarity. In other words, the toothpaste is next to or adjacent the tooth brushes and the tea and coffee are down the same isle as the sweet biscuits. These products complement one another and placing them near is one way marketers try to increase purchases.
Consumer psychologists suggest that most buyers tend to enter the store and shop to their right first. This suggests that supermarket marketers should use this theory to their advantage by placing their temporary displays of products on the right-hand side to entice you to make an unplanned purchase. Furthermore, aisle ends are extremely popular with product manufacturers, who pay top dollar to have their products located there. These aisle ends are used to lure customers into making a snap purchase and to also entice them to shop down the aisle. The most obvious place supermarket layout has an impact on consumers is at the checkout. Small displays of chocolates, magazines and drinks are located at each checkout to tempt shoppers while they wait to be served.
This section needs additional citations for . Please help
by . Unsourced material may be challenged and removed. (July 2010)
Supermarkets often generate a lot of . With present technologies ( units), a huge amount of food waste can be avoided, and may even increase revenue for the store owners, as processed food waste can be reused again and reduce electricity bills for the supermarket.
Supermarkets can generally retail at lower prices than traditional corner shops and markets due to higher volume throughput. This has led to small businesses losing customers and closing in many areas, which can be seen as an adverse effect on the local .
In the , major-brand supermarkets often demand
from suppliers in exchange for premium shelf space and/or better positioning (such as at eye-level, on the checkout aisle or at a shelf's "end cap"). This extra of the supplier cost (up to $30,000 per brand for a chain for each individual ) may be reflected in the cost of the products offered. Some critics have questioned the ethical and legal propriety of slotting fee payments and their effect on smaller suppliers.
supermarkets have been accused of squeezing prices to farmers, forcing small shops out of business, and often favouring imports over British produce.
In , supermarkets have been accused of buying fresh produce from growers at low prices and selling with ridiculously high mark-ups, sometimes as high as 500%.
; an alternative to supermarkets which have lower prices and which provide more revenue to farmers (the actual producers of the food)
Hamlett, Jane (April 2008). . History & Policy. : History & Policy 2010.
. The Western Fruit Jobber IV (3). July 1917.
Gray, Christopher (10 September 2006). "The Astor Legacy in Brick and Stone". The New York Times.
Gray, Christopher (5 July 1987). . The New York Times.
Strasser, Susan Never Done: A History of American Housework Holt Paperbacks, 2000.
Supermarket News, 29 August 2005, p. 10
Anonymous, "The place where supermarketing was born," Mass Market Retailers 19, no. 9 (17 June 2002): 172.
Ryan Mathews, ": Entrepreneurs and Enterprise: A Look at Industry Pioneers like King Kullen and J. Frank Grimes, and the Institution They Created (Special Report: Social Change & the Supermarket)," Progressive Grocer 75, no. 12 (December 1996): 39–43.
Helen Gregory (). . The Grocer.
Thomas Reardon, Peter Timmer and Julio Berdegue, 2004. . Journal of Agricultural and Development Economics, Vol 1 No 2.
Reardon et al, op cit
Kevin Chen, Andrew W. Shepherd & Carlos A. da Silva, .
Andrew W. Shepherd and Eva Gálvez. "The response of traditional marketing channels to the growth of supermarkets and to the demand for safer and higher quality fruit and vegetables, with particular reference to Asia". Proceedings of the International Symposium on Fresh Produce Supply Chain Management, Chiang Mai 2006. pp. 304–313. FAO, Bangkok.
Gajanayake, R., Gajanayake, S., Surangi, H 2011, "The impact of selected visual merchandising techniques on patronage intentions in supermarkets", International Conference on Business and Economic Research, p.
Browne, Karen (April 2010). "Trolley Psychology: Choice unlocks the psychological secrets of the supermarket and shows you how to avoid spending more than you mean to". Australian Consumer's Association Choice Magazine (4): 60.
2 Browne, K 2010, "Trolley Psychology: Choice unlocks the psychological secrets of the supermarket and shows you how to avoid spending more than you mean to", Choice, Australasian Consumers' Association, Chippendale, NSW, Australia, no. 4, April, p60, retrieved 14 October, Expanded Academic Database
Aghazedah, S 2005, "Layout strategies for some of a retail operations", Management Research News, vol. 28, no. 10, pp. 31–46, retrieved 8 May 2012, Business Source Complete, EBSCO host.
Browne, p. 60.
Bezawada, R Balachander, S Kannan, PK Venkatesh, S 2009, "Cross-Category Effects of Aisle and Display Placements: A Spatial Modeling Approach and Insights", Journal of Marketing, vol. 73, no. 3, pp. 99–117, 3 May 2012, Business Source Complete.
Browne, K 2012, "Trolley Psychology: Choice Unlocks the Psychological Secrets of the Supermarket and Shows You How to Avoid Spending More Than You Mean To", Choice, no. 4, p. 60, 3 May 2012, expanded academic database.
Browne, 2010
Bucklin, Louis P. (Nov 1967). "Competitive Impact of a New Supermarket". Journal of Marketing Research 4 (4): 356–361. :.
Oligopoly Watch 8 May :56 PM
September 8, 2003 at the
Petroski, Henry (November–December 2005). . American Scientist 93 (6): 491.
William Greer, America the Bountiful: How the Supermarket Came to Main Street, Food Marketing Institute, 1986.
Sowell, Thomas. Basic Economics (Third Edition, 2007 Basic Books). Pages 92–94 describe the competition between the dominant grocery chains in the United States through the 20th century and beyond.
Mack, Adam. "The Politics of Good Taste: Whole Foods Markets and Sensory Design." The Senses and Society. Volume 7: March .
Wikimedia Commons has media related to .
– Explore a century of revolutionary change in UK food culture on the British Library's Food Stories website
– supermarket history and architecture from the 1920s to the 1970s
, 4 August 2005,
– Nationally circulated weekly trade magazine for the food distribution industry.
: Hidden categories: