Strategy implementation: Competition among supermarkets

Abstract

The retail food market has been wracked by traumatic changes for more than a decade. In the 1970s A & P, the largest chain at that time, was well on the way to oblivion until rescued in a foreign takeover by the West German firm of Tengleman. Safeway, the 1986 market share leader nationally, chose a leveraged buyout rather than a takeover and currently has many divisions in the U.S. up for sale. Within a year or two, Safeway will be a pale shadow of its former self, because it failed to adapt to intense competition. Kroger, the current industry leader, has already begun closing stores in many major markets. In the meantime, the strong regionals such as Food Lion, Shaw's, Hannaford Bros., Randall's, Smith's, Bruno's, Weiss, Albertsons, Publix, Giant Food, Pueblo International, H. E. Butt, and Hughes, are challenging the largest national chains for market share in carefully chosen fields of battle. Overall, the supermarket industry experienced an after tax return on net worth of 14 percent in 1986.

Citation

Leslie Livingstone, J. and Tigert, D.J. (1987), "Strategy implementation: Competition among supermarkets", Planning Review, Vol. 15 No. 6, pp. 14-48. https://doi.org/10.1108/eb054207