The grocery store segment consists of equal parts of decline and optimism. According to a grocery store retailing study published in July 2010 by Chicago-based Mintel International Group, the grocery products market grew by just 0.6 percent in food, drug and mass merchandise outlets. This market includes bakery, dairy, deli, edible, frozen foods and drinks, general merchandise, health and beauty items, and non-edible products, but excluding alcohol beverages.
Although the grocery market reached $356.5 billion during 2009-10, the segment’s performance during the past year has been lackluster. Overall, sales were down and traditional grocery stores have lost significant market share. But, the poor performance numbers during the past year have inspired retailers to refocus their efforts, reorganize their product offerings and revisit the fundamentals of grocery retail.