Specialty Food Stores

Specialty Food Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell products such as meat, fish, fruits and vegetables, baked goods, candy, and gourmet foods from physical retail locations, often specializing in a single product category. No major companies dominate the industry.

COMPETITIVE LANDSCAPE

Consumer spending and tastes drive demand. The profitability of individual companies depends on effective merchandising and the ability to generate store traffic. Large companies can offer a wide selection of products and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by offering locally sourced and specialty products, providing superior service, or serving a local market. The US industry is highly fragmented: the 50 largest companies account for less than 20% of sales.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products sold by specialty food stores include fresh meat and poultry accounting for about 30% of sales, fresh fruits and vegetables for about 20%, candy, prepackaged cookies, and snack foods for about 10%; fresh fish and seafood, and perishable prepared foods for about 10% each. Other products include dry grocery products, cheeses and other dairy products, prepared foods, and kitchenware. Companies may place special orders for customers looking for unique items.