Tight times benefit grocery stores

| Print |  Email
Saturday, November 01, 2008

STATEWIDE The economic slowdown hasn’t kept grocery-store carts from rolling.

As companies small and large operating across the Oregon business landscape reel from the economic downturn, value-oriented grocery stores are holding their own — for now.

“In terms of overall traffic, it’s up,” says Joe Gilliam, president of the 300-member Northwest Grocery Association. “Unfortunately, [it’s] at the expense of our friends in the restaurant industry.”

Last month, Costco Wholesale Corp., the bulk grocery retailer, announced a 7% increase nationwide in fourth-quarter profit, with overall revenue  up 13% from last year.  At Kroger, the parent company of Fred Meyer, overall earnings increased 12% in its second quarter ending in August compared to last year, according to filings with the Securities and Exchange Commission.

Gilliam sees a profound shift in consumers’ shopping habits at grocery stores. He says more people are seeking bargains with coupons and even more are buying in bulk. “People are filling their pantries more than they did in the past,” he says.

Gilliam also notes more shoppers fleeing high-end grocery stores such as Whole Foods to more value-based stores such as Winco Foods and Safeway. “Everyone is trying to make their bucks stretch,” he says.

The value of Whole Foods Market stock has dropped more than 30% since this time last year.  And restaurants? Total sales are down 4% for the year.     

JASON SHUFFLER


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Powerbook Perspective

January-Powerbook 2015
Friday, December 12, 2014
BY LINDA BAKER

A conversation with Oregon state economist Josh Lehner.


Read more...

The clean fuels opportunity

News
Monday, November 10, 2014
111014-dirtyfuel-thumbBY KIM MOORE | OB RESEARCH EDITOR

A market for low-carbon transportation fuels has a chance to flourish in Oregon if regulators adopt the second phase of the state’s Clean Fuels Program.


Read more...

OB Poll: Wineries and groceries

News
Friday, October 24, 2014

24-winethumbA majority of respondents agreed: Local vineyards should remain Oregon-owned and quality is the most important factor when determining where to eat or buy groceries.


Read more...

Corner Office: Steve Tatone

January-Powerbook 2015
Saturday, December 13, 2014

Seven tidbits about the president and CEO of AKT Group.


Read more...

Woman of Steel

November/December 2014
Wednesday, October 22, 2014
BY LINDA BAKER

Tamara Lundgren tackles the challenges—without getting trampled.


Read more...

Healthcare Perspective

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.


Read more...

Leading with the right brain

News
Tuesday, December 09, 2014
120914-manderson-thumbBY LINDA BAKER

On the eve of the Portland Ad Federation's Rosey Awards, Matt Anderson, CEO of Struck, talks about the transition from creative director to CEO, the Portland talent pool and whether data is the new black in the creative services sector.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS