GLOBEST.COM: Shifting Trends Dominate Grocery Sector

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GLOBEST.COM | By Paul Bergeron| February 11, 2022

Coresite detailed several grocery real-estate trends to watch in its recent market outlook report. Not surprisingly, Amazon was the leading one to watch, as it ramps up its offline grocery footprint.

Amazon is seeking to establish a presence in the mainstream US grocery market that is currently not served by Whole Foods, by stepping up its Fresh store footprint. The retailer has opened 23 Amazon Fresh stores in the US as of January 2022, just over a year after the launch of the grocery format, with more locations in the pipeline.

Coresite also sees momentum in grocery discounters’ real estate expansion. Discount retailers have seen strong growth over the last few years and were able to maintain that momentum amid the pandemic, with sales growth of 8.6% in the US in 2020, according to Euromonitor.


Expansion

Meanwhile, Aldi and other brands continue to look to expand.

“Aldi’s first wave of store openings in Southern California have all proven successful, and now they are looking to fill additional trade areas,” Matt Hammond, partner and Senior Vice President for Coreland Companies, tells GlobeSt.com.

“Ethnic grocers, including 99 Ranch Market and Superior Super Warehouse, are looking to expand into suburban markets. Additionally, Ralphs has elected to renew at sites previously earmarked for closing.”

While the grocer and restaurant sectors have been greatly impacted by the rising cost of food and labor, grocers are able to pass price increases on to the customer more strategically than restaurants, Hammond said.

 

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