Supermarket Industry Essay Example | Topics and Well Written Essays - 2500 words

Supermarket Industry - Essay Example With the increased competition, many people in the supermarket industry have realized the importance of offering a wide range of products from groceries, electronic items, and clothing among other items which will ensure that their shops have a competitive edge over the rest of their rival supermarkets. The supermarket industry has therefore played a significant role in the growth of the economy in terms of creating employment, provision of vital goods to customers among other roles and most of the supermarkets have undeniably adapted it. Nevertheless, most of the international supermarkets such as wal-mart have been able to survive and they have been able to reinvent themselves over a period of time so as they can be able to attract and maintain a wide base of loyal customer and increasing their sales volume (Robert, S. 2003). Most of them have come up with new concepts and innovation and hence they have been able to succeed in their endeavors. In this world where competition is thrive, it seems as everybody is following the same line where most of the supermarkets have become a one stop shopping p... On the other hand, the supermarket industry is currently faced with some challenges of trying to maintain a market share and profits while attempting some of the new concepts in order they would be able to differentiate themselves from other types of retailers (Carmen, M. 1994). It has been shown that there has been some major demographic and consumer lifestyles which have changed the shopping behavior of consumers and that are why consumers choose where to shop and the products they require (Robert, S. 2003). On the other hand, most of the traditional supermarkets have witnessed a decline in how much shoppers spend and how frequently they shop in a particular store and hence the importance of the changes that have been witnessed in most of these supermarkets (Narasimhan, S. 2006). While there have been some supermarket operators whom have attempted to reduce the operational cost and slashing the prices of the products they stock, they find this to be a tough approach when competing with low cost operators like Wal-Mart and Costco and hence there is a need of re-evaluating their strategies (Kahn, B. 1997). Literature review Majority of supermarkets are essentially devising various strategies of increasing their sales volume and maintaining customer loyalty over the years, and some of the strategies used is diversifying in their products and reducing the prices of their products. However, in our increasingly busy lives, consumers are relying on supermarkets for all their shopping needs due to the fact that it is a one shopping place (Kaufmann P.J. 1994). It has been shown in various instances that customers know what to expect and want and whenever they walk into