Beef Industry At A Glance: Growth Of Super Centers

The growth and domination of the super center means a lot of change within the food marketing business, but it also carries ramifications for suppliers.

Nevil Speer

March 21, 2013

2 Min Read
Beef Industry At A Glance: Growth Of Super Centers

The retail food world has changed dramatically over the past 10-15 years. Traditional supermarket sales were beginning to be challenged by all sorts of new formats during the late 1990s. There’s no doubt, though, that Walmart was the largest driver of change. The company positioned itself as the leader among food retailers.

Walmart relentlessly monitors individual item turnover performance, and its format success depends heavily upon efficient inventory management (including the meat case). Those efforts aid in eliminating supply chain management shortfalls. As a result, Walmart is able to cut costs and pass along savings to customers.

retail trend goes to super centers

Therein enters the promotional emphasis upon everyday low pricing. Lower grocery prices attract customers, build store loyalty among consumers, and ultimately stimulate traffic within higher-margin departments, thereby increasing overall store yield.

The success of the super center concept hasn’t gone unnoticed in the food world, and thus explains the format’s domination of growth during the past six years. A number of competitors are increasingly trying to introduce similar formats, including Target and K-Mart. Meanwhile, even traditional grocers are expanding their product offering to more closely mimic the super center concept.

That all means lots of change within the food marketing business, but also ramifications for suppliers. How do you perceive the shifting business environment and its subsequent influence on the beef industry? What further influences do you foresee in the coming 5-10 years? Leave your thoughts in the comments section below. 



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About the Author(s)

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

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