Dallas sees strong supermarket competition

The growing Dallas-Fort Worth population is also conducive to the supermarket industry.

The city has a wide variety of supermarkets, including national chains, regional chains, discount clubs, and smaller stores.

Steve Ford, managing member at Dallas Direct Distributing, LLC in nearby Crandall, TX, calls it “a general cross-section” while the Dallas Morning News reports that metro grocery sales for the region have reached $17.5 billion a year.

The DFW metroplex’s prospects have captured the attention of popular international chains such as Germany’s Aldi, which has more than 50 stores in the region. Its compatriot and competitor Lidl is also looking to gain a foothold in the metroplex, but has yet to set up shop.

The supermarket chains with the largest chunk of market share in DFW for 2018, based on sales for April 2017 through March 2018, include Walmart (27.4 percent), Kroger (15.4 percent), Tom Thumb (8.7 percent), Target and SuperTarget (5 percent), Sam’s Club (4.8 percent), Costco (5 percent), and Albertsons (4.2 percent).

Regional chain Brookshire’s and Super 1 Foods command a 2.2 percent market share, while Sprouts Farmers Market is at 2 percent, and Aldi holds a 1.9 percent slice. While Walmart has lost some market share compared to 2017, when it held 28 percent, it is still the top food retailer.

Kroger and Tom Thumb have both gained market share, while holding on to their leading positions, with their 2017 shares being 14.3 percent and 8.1 percent respectively. Aldi added additional space at its stores, but lost market share over the year, falling slightly from 2 percent in 2017.

One way the area’s stores have retained customers is catering to convenience. This includes online grocery shopping, which has taken off, with numerous variations on the theme.

Walmart, for one, has jumped on the bandwagon, setting up services for shoppers to pick up groceries ordered online, with plenty of exposure through clever television and social media advertising. Kroger, too, has capitalized on the trend, while Aldi has introduced its own online delivery capabilities.

This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full version.