The
supercenter channel, Wal-Mart Supercenter, SuperTarget,
Kmart/Sears, Fred Meyer and Meijer, is the fastest
growing sector in the retail industry with 2006
calendar year sales of $231.9 billion and projected
2011 calendar year sales of $359.5 billion.
A supercenter houses both a discount store, that
contains a full complement of general merchandise
categories, and a full grocery store, that includes
perishable food products. Supercenters generally
range in size from 140,000 to 250,000 square feet
and stock over 100,000 items. There is a common
checkout area for both the general merchandise
and food categories.
Wal-Mart Supercenters - Wal-Mart
opened its first supercenter in 1988 in Washington,
Missouri. It was 126,000 square feet, with approximately
40% of its space dedicated to food products. By
1994, Wal-Mart operated 123 supercenter locations.
Since then, the company has greatly increased
the number of supercenter locations. Primarily
through the conversion of existing discount stores
to supercenters, Wal-Mart currently (as of January,
2007) operates 2,195 supercenters. At the end
of the 2006 calendar year, Wal-Mart’s supercenter
division generated annual sales of $199.9 billion
with average annual per-store sales of $96 million.
SuperTarget - Target opened
its first SuperTarget in Omaha, Nebraska in 1995.
SuperTarget follows its parent company’s
philosophy of providing a high-end shopping experience
for its customers. The company’s grocery
store operation is called Archer Farms Market.
This brand acts as a private label for the merchandise
and as an identity for the grocery store as the
Archer Farms Market is the name that customers
see when they enter the food side of the SuperTarget.
Target plans to open 200 more SuperTarget locations
over the next ten years. As of January, 2007, Target
operated 177 SuperTarget locations. At the end
of the 2006 calendar year, SuperTarget generated
annual sales of $10.2 billion with average annual
per-store sales of $61 million.
Kmart Supercenters - Kmart opened
its first Kmart Supercenter in Medina, Ohio in
1991. Kmart’s supercenter operation combines
full-service grocery and general merchandise departments
and are approximately 140,000 to 190,000 square
feet. They feature in-house bakeries, USDA fresh
meat and seafood, a full deli and a variety of
specialty food kiosks. The average location stocks
between 100,000 and 150,000 SKUs. Kmart currently
(January, 2007) operates 55 locations. At the end
of the 2006 calendar year, Kmart Supercenters
generated annual sales of $2.2 billion with average
annual per-store sales of $40 million.
Fred Meyer – Fred Meyer,
a subsidiary of The Kroger Company, opened its
first supercenter location in 1922 in Portland,
Oregon and became one of the first retailers to
offer food and non-food products under the same
roof. The company operates primarily in the Western
United States. Its locations stock a broad selection
of 225,000 food and general merchandise SKUs in
130,000 to 200,000 square foot locations. At the
end of the 2006 calendar year, Fred Meyer operated
128 locations generating annual sales of $5.8
billion with average annual per-store sales of
$45 million.
Meijer – Meijer, a privately
held company, opened its first location, a supermarket,
in 1934. It continued to operate grocery stores
until 1961, when it opened its first supercenter
location. Meijer operates some of the largest
supercenter locations in the country, with some
stores reaching 250,000 square feet including
40 departments. The company operates primarily
in the Midwestern part of the United States. As
of January, 2007, Meijer operated 176 supercenter
locations. At the end of the 2006 calendar year,
Meijer generated annual sales of $13.8 billion
with average annual per-store sales of $79 million.
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