1、October 2023Banner Variety Within 3Grocery GiantsDive into the foot traffic and location intelligence data to seehow leading grocery companies are leveraging their bannerdiversity to thrive in an increasingly competitive environment.OverviewThe grocery industry in the United States is highly diverse

2、,with national chains likeTrader Joes and local operations such as WinCo Foods meeting the needs of groceryshoppers throughout the country.And even within the larger holding companies suchas The Kroger Co.and Albertsons Companies,different banners serve differentaudiences.Which holding company cater

3、s to a diversity of income levels through its differentbrands?What company attracts an outsize share of rural shoppers with itsfast-growing local chain?And where are the smaller brands of a holding corporationreaching more families with children than that corporations conventional chain?This white p

4、aper analyzes the reach of some of the largest grocery holding companiesin the United States,including Ahold Delhaize,The Kroger Co.,and AlbertsonsCompanies,and dives into leading banners within each company.The report showswhich holding companies are most active in each market and looks at the diff

5、erentfunctions played by the holding companies various banners.A Diversity of Holding CompaniesDespite the significant size of the top grocery players in the United States,no singleholding company controls the grocery market.Instead,the space is divided betweenlocal players,independently-owned natio

6、nal chains,and holding companies thatoperate a variety of regional and national banners.Ahold Delhaize,with brands such as Food Lion,Giant,Hannaford,and Stop&Shop,isconcentrated in the northeast and mid-Atlantic.Albertsons Companies,whichincludes Albertsons,Safeway,Vons,Shaws,and others is active in

7、 the western half ofthe country,with a particular focus on the coast.The company also has a presence inthe Chicago area with its Jewel-Osco banner and in the Northeast through Shaws andStar Markets.And The Kroger Co.banners which include Kroger,Fred Meyer,Ralphs,and others are peppered throughout th

8、e country with important clusters in Oregon,Washington,Southern California,and the East North Central Division of the Midwest.2023 Placer Labs,Inc.|More insights at placer.ai|2Krogers Price-Impact Format Finding the Right MarketThe Kroger Co.is the largest of the three holding companies analyzed in

9、this report.The companys retail footprint extends far beyond grocery,and its grocery businessincludes four different formats.The Kroger Co.s banner diversity allows it to serve avariety of audiences while still benefiting from a substantial retail footprint includingby promoting a retail media netwo

10、rk that allows advertising partners to showcasetheir campaigns across the various banners.2023 Placer Labs,Inc.|More insights at placer.ai|3Supermarkets standard neighborhood food and drug stores are the companysprimary grocery format,and mostly serve shoppers that live within a couple miles ofthe v

11、enue.Multi-department stores(specifically,the Fred Meyer banner)sell apparel,home fashion,hardware,and other items in addition to standard foodstuff.Marketplace stores,which function as expanded versions of some of the companyssupermarket banners,offer toys,electronics,and general merchandise alongs

12、ide afull-line supermarket.Lastly,price-impact warehouse stores,under the banners of Food 4 Less and FoodsCo.,carry standard grocery fare alongside ethnic products in large,warehouse-stylevenues that are particularly attractive to budget grocery shoppers.And followingtrends seen across many retail c

13、ategories,The Kroger Co.s low-cost options seem tobe outperforming the companys other formats.2023 Placer Labs,Inc.|More insights at placer.ai|4Krogers Winning Family-Friendly FormatA variety of factors is likely driving visits to the price-impact warehouse stores,including trading down behavior fro

14、m shoppers looking to reduce their groceryspending in the face of still-high prices.And families with children who have been hithard by the ongoing inflation may be trading down more than other segments.The price-impact warehouse store venues are primarily located in California,whereThe Kroger Co.al

15、so operates Ralphs under its classic supermarket format.Layeringthe STI:Popstats dataset on the captured market trade area of the three banners Food 4 Less,Foods Co.,and Ralphs reveals that the price-impact warehouse storesare indeed particularly attractive to households with children.A chains poten

16、tial market trade area consists of the areas where visitors to the chainreside,weighted according to the population size of each Census Block Group(CBG)ofthe trade areas.The captured market consists of the areas where visitors to the chainvenues reside,but weighted according to the actual visit shar

17、e to the chain from eachCBG.And analyzing the potential market trade areas of Food 4 Less and Foods Co.shows that these include slightly more households with children than the potentialmarket trade areas of Ralphs.This means that the price-impact warehouse bannersare likely located near neighborhood

18、s that are a little more family-friendly than theneighborhoods serviced by Ralphs.But the share of households with children in Food 4 Less and Foods Co.s capturedmarket is even higher than it is in the potential market,and significantly higher thanthe share of households with children in Ralphs capt

19、ured market.And the share ofhouseholds with children in Ralphs captured market is actually lower than it is inRalphs potential market so Ralphs trade area includes fewer families to begin with,and an even smaller share of those families shop at Ralphs.This data indicates that households with childre

20、n are overrepresented in Food 4 Lessand Foods Co.s actual visitor base relative to their share in these chains potentialmarkets while being underrepresented in Ralphs visitor base.The difference in thetwo formats visitor base coupled with the price-impact formats visit increases 2023 Placer Labs,Inc

21、.|More insights at placer.ai|5suggest that families on a budget may be a significant factor driving strength amongThe Kroger Co.s price-impact warehouse store.Albertsons Banners Attracting a Variety of IncomeLevels Across StatesAlbertsons Companies Inc.is the countrys second largest grocery store op

22、erator afterThe Kroger Co.,operating around 20 well-known banners across the country.Safeway receives the largest visit share(43.0%)out of the Albertsons Companies Inc.svarious banners,followed by the Albertsons brand(17.0%),Jewel-Osco(11.0%),andVons(10.0%).The company also operates a number of smal

23、ler chains,includingACME,Shaws,Tom Thumb and United Supermarkets.2023 Placer Labs,Inc.|More insights at placer.ai|6The various Albertsons Companies Inc.banners are distributed throughout theUnited States.Vons mostly operates in Southern California,Safeway on the WestCoast,Jewel-Osco in the Chicago a

24、rea,ACME Markets in the mid-Atlantic region,United Supermarkets in Texas,Shaws in the Northeast,Tom Thumb in the Southeast,and Albertsons throughout the Western half of the country.Income Diversity Among Albertsons Various BannersIn addition to their geographic breadth,the different Albertsons Compa

25、nies bannersexhibit a wide range of median household income(HHI)among their visitor bases.ACME Markets headquartered in Pennsylvania attracts the highest-incomeaudience,with a median HHI of$90.6K in its captured market trade area,followed byVons($90.3K)and Tom Thumb($89.5K).United Supermarkets headq

26、uartered in 2023 Placer Labs,Inc.|More insights at placer.ai|7Texas lies at the other end of the spectrum,with a median HHI of$59.7K in itscaptured market trade area.Some of the income diversity within the Albertsons Companies visitor base may beattributed to the geography.But diving deeper into the

27、 visitor base of the companyslargest brands on a state-by-state basis reveals a more complex picture.State-by-State Differences in Grocery AudienceAs the chart above reveals,Safeway tends to attract more visitors from higher-incomeareas than Albertsons on a nationwide level.And while this trend hold

28、s true inCalifornia,Oregon,and Wyoming,the reverse pattern emerges in Arizona andWyoming,where the Albertsons banner attracts visitors from higher-incomeneighborhoods.The difference between the nationwide and state-level trends 2023 Placer Labs,Inc.|More insights at placer.ai|8suggests that analyzin

29、g grocery markets on a state level can provide higher-resolutioninsights into the local iteration of each brand.The variety in income levels between the audiences of the same brands in differentstates also highlights the benefits that a diversity of banners brings to both holdingcompanies and consum

30、ers.By operating two different brands in the same marketsthat cater to different income levels,Albertsons Companies attracts a wider range ofshoppers while offering locals greater grocery choice.Ahold Delhaize:Investing in Rural CommunitiesThe United States grocery scene is also home to internationa

31、l brands likeNetherland-based Ahold Delhaize,one of the worlds largest food retail groups.Thechains U.S.arm operates several digital grocery stores alongside fivebrick-and-mortar grocery banners clustered in the Mid-Atlantic and East Coastregions.2023 Placer Labs,Inc.|More insights at placer.ai|9Foo

32、t traffic to its largest offline grocery brand,Food Lion,jumped dramatically duringthe COVID-19 pandemic grocery surge and has since continued on an upwardtrajectory.So what is keeping the brand ahead of Ahold Delhaizes other grocerybanners?Rural Shoppers Boosting Grocery VisitsDiving into the psych

33、ographic data for Ahold Delhaize banners reveals that Food Lionattracts a significantly higher share of average-income rural shoppers than thecompanys other brands which may be a major driver of the chains success.2023 Placer Labs,Inc.|More insights at placer.ai|10Analyzing the captured market trade

34、 area of Ahold Delhaizes five grocery bannersusing the Spatial.ai PersonaLive dataset shows that 14.5%of Food Lions capturedmarket trade area consists of“Rural Average Income Households.”Food Lion seemsto serve almost twice as many average income rural households as Hannaford,andmore than three time

35、s as many as The GIANT Company.With the uptick in people who moved to rural areas during the pandemic,Food Lionspopularity among that demographic may help explain why the brand is maintainingits pandemic visit gains,even as the rest of the grocery sector slows down.The Diversity of Grocery BannersGr

36、ocery holding companies succeed in reaching a wide array of shoppers throughtheir multiple grocery chains.A single holding company may own a range of chainslocated in different areas,or it may operate a variety of chains located in the samegeographic region that service different audiences.Another c

37、orporation may operatean assortment of formats that provide consumers with a wide array of grocerychoices.So while several large grocery companies may own a large number of the 2023 Placer Labs,Inc.|More insights at placer.ai|11United States leading grocery chains,diving into the audiences and visit

38、 trends forthe individual banners highlights the diversity of offerings across the individualbanners.Key Takeaways1.The grocery industry in the United States is highly diverse.No singlegrocery holding company controls the U.S.grocery market.Instead,the spaceis divided between independently-owned nat

39、ional chains,local grocery brands,and holding companies operating a variety of regional banners.2.Different store formats can serve different functions.The Kroger Co.operates four grocery formats within its grocery ecosystem.Each formatserves a unique function,caters to different grocery needs,and a

40、ttracts aunique demographic segment.The Kroger Co.s banner diversity also allowsthe company to reach a variety of audiences through its in-store retail medianetwork.3.Families with children may be particularly sensitive to grocery pricing.The Kroger Co.s two price-impact warehouse store banners are

41、seeingsignificant visit growth,perhaps thanks to the outsize share of households withchildren among their shoppers.4.Different banners may attract different audiences even in the samegeographic locations.A variety of shoppers visit the Albertsons Companiesgrocery brands,with different banners in the

42、 same state attracting audiencesof different income levels.5.Grocery chains serving rural shoppers may be well-positioned for futuregrowth.Ahold Delhaizes fastest growing grocery brand,Food Lion,also catersto the largest share of average-rural shoppers which may be one of thefactors driving its success as more families continue seeking affordablehousing in lower-density areas.2023 Placer Labs,Inc.|More insights at placer.ai|12