Rotarian Dick Rudisil. to discuss Retail Food Industry

Substantial transformations, driven by a combination of minor and major trends, have affected one of the United States’ largest sectors, food retail. These include the impact of the pandemic, food inflation, and shifts in consumer behavior that have shaped the industry landscape. For example, increased demand for online shopping has had a major impact, with food and beverage sales as a percentage of total retail e-commerce sales increasing from 9.3 percent in 2017 to nearly 16 percent in 2023, and projected to reach 21.5 percent by 2027. In addition, the recent inflationary pressure is adding further challenges to the industry, and driving the need for change and evolution in both retailers and consumer behavior. Despite these challenges, retail and food services sales in the country have remained strong and continue to experience steady growth.

How big is the U.S. food retail industry?

The food retail industry in the United States comprises foods sold at grocery stores, convenience stores, drug stores, mass merchandisers, and foodservice facilities. Major players in the industry include Walmart, Kroger, and Walgreens. However, despite the growth of such major supermarket chains and the emergence of online food purchases, there is still a significant network of specialty food and convenience stores meeting the needs of local neighborhoods. In the United States, retail and food services sales amounted to over eight trillion U.S. dollars in 2023, an increase of more than three percent from the previous year. The total number of supermarkets and other grocery stores in the U.S. has declined slightly to about 62 thousand, with sales of that format hitting an estimated 846 billion U.S. dollars in 2023, which accounted for 85 percent of the U.S. food and beverage retail market .

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