The business of agribusiness - Agribusiness Management - page 16

Plate 1.2 Man shopping
There are a variety of retail store formats competing for the business of U.S. food consumers.
Photo courtesy of USDA

food, and farmers markets. Key attributes for some of the most common store formats are
briefl y described (Kaufman 2007):

• Supermarket : the conventional prototype typically carries about 15,000 items in a

10,000 to 25,000 square foot store.

• Superstore : has at least 40,000 square feet, which leads to a greater variety (25,000

items) of products, especially non-food items. The strategy is to promote the conven-
ience of one-stop shopping, by providing additional service and selection.

• Convenience store (without gasoline) : a small grocery store, selling a limited variety of

basic foods, snack foods, and non-food products, typically with extended hours. Grocery
products account for 45 percent of sales. Ready-to-eat and fountain beverages represent
about 10 percent of sales. Packaged liquor, beer, and wine, and tobacco products account
for another 35 percent of sales.

• Warehouse Club Stores : no-frills, membership-based, wholesale-retail hybrid outlets.

These “box stores” serve both small businesses and individual consumers in a large
warehouse-style environment. Grocery products (in large and multi-pack sizes) account
for about 30 percent of sales. General merchandise (clothing, electronics, small appli-
ances, and automotive products) accounts for 70 percent of sales. Following a low-price
strategy, these stores typically stock fast moving, non-perishable products, carrying
6,000 to 12,000 items in stores from 10,000 to 15,000 square feet.