Food retail industry
includes those companies that sell different kind of food products including frozen
food, canned food, and different kind of cereals, vegetables, fruits and meat products
to the consumers.
The sale of food
retailers is affected by many factors. For example, the amount of crops
produced in the country each year. In 2012, the severe weather conditions of
U.S brought havoc both for the food retailers and the consumers. The production
of fewer crops in the country resulted in an increase in the price of the food
items and affected both the suppliers and the customers. Brand loyalty is
another factor that affects the sales of such products. It has been found that
almost 53 % consumers prefer to buy food items from those food retail companies
that have good store brand product. Thus, the retailers that have developed a
name over time are able to perform better in the market by generating higher
revenue. Also, with time, consumer preferences have changed. Now people like to
buy ready-made food that they can cook and eat at home rather than going to restaurants.
This shift in preferences has resulted in an increase in the revenue of the
food retailers and according to estimation, food retailers will be able to
generate revenue of $1.7 trillion by the end of 2015. Moreover, the
introduction of hypermarkets and super centers has also led to an increase in
the consumption of such food items. For getting further information related to
food retail companies, visit one of the best financial news and information platforms
bidnessetc.com
Among the top
hypermarkets of the world that are famous for food retailing, Wal-Mart is on
the first number. Other such retailers include Carrefour, Tesco PLC and Metro
cash and carry. Due to harsh weather condition of U.S, Wal-Mart has not been able to
generate as much profit as it made in the previous years. There has been
observed a decline of 1.7% in the quarterly sales of the store as the severe
weather has badly affected the demand. Moreover, a decline of 1.4 % in recorded
in the customer visits as they are unable to reach the store in the stormy weather.
Carrefour, on the other hand, has to face challenging conditions in Europe due
to a change in the economy of the area. However, the total sales of the company
have increased and are recorded to be 19.7 billion euros during the first
quarter of 2014.
Tesco PLC is considered
to be the largest U.K retailer. The company has been reported to be losing its
customers to the discounters during the last few years and by the end of 2013,
the sales of the company dropped by 1.5 %. In Turkey, Metro has a large growth
market. The revenue of this retail store is recorded to increase by almost 20 %
annually since 2007. For getting further up-to-date information about the revenue
growth of the food retail companies, visit one of the best financial news
platform bidnessetc.com.
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