Giant, Walmart, CVS Pace All Retailers In $48 Billion Market

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Identical store sales at the 52 stores that Giant/Martin’s operated in the region were solid. The fact that the Carlisle, PA-based “brand” operated 15 fewer stores this year (mainly from the final shutdown of its Richmond Martin’s operations), impacted the company’s overall sales in the Mid-Atlantic for the second straight year. With the store closings/divestitures now completed, the most profitable operating unit of ADUSA (which also adopted a decentralized operating structure at the beginning of this year) is back on track with solid sales and an aggressive store remodeling/expansion program primarily in Pennsylvania. Now under the leadership of youthful Nick Bertram, Giant/Martin’s annual sales were $2.14 billion at its 52 stores in the market.

Ranking seventh overall, but first amongst convenience store operators, was 7-Eleven. The c-store operator continued on its path of modest comp-store improvement, while upgrading many of its stores. Estimated sales for the Irving, TX-based retailer’s 1,126 stores in the Mid-Atlantic were $1.95 billion.

Harris Teeter enjoyed a solid year of growth, adding four new stores (71 in total in the Mid-Atlantic) and increasing annual sales to an estimated $1.88 billion. The unit of Kroger also acquired 10 former Farm Fresh stores, which are currently undergoing renovation.

Weis Markets, which last year was the largest (by percentage) sales gainer of any retailer in the region (after acquiring multiple stores from Food Lion and now-defunct Mars Super Markets), didn’t display that type of fireworks over the past 12 months, but nonetheless enjoyed another solid year of revenue growth (it has produced 16 consecutive quarters of positive comp store sales). At its 105 area stores, Weis sales were $1.55 billion, a jump of more than $20 million from 2017.

Rounding out the top 10 were the 117 “International Markets” (specialty and ethnic supermarkets) which continued to command a significant market share in the region (3.2 percent). We have collectively combined only supermarkets larger than 20,000 square feet in size in the market study. Estimated sales for those stores was $1.53 million.

Other retailers that topped the $1 billion mark in annual sales in the Mid-Atlantic region included: Wegmans with 20 stores – one more than last year – which had estimated sales of $1.52 billion); Shoppers, which dropped out of the top 10 for the first time since the 1980s – 52 stores, estimated annual revenue of $1.47 billion; Target – 103 stores, estimated extrapolated annual volume of  $1.46 billion; Costco – 29 stores, estimated extrapolated annual sales of $1.43 billion; Rite Aid, which sold some stores in the region to Walgreens and is scheduled to merge with Albertsons this summer – 373 stores with estimated revenue of $1.26 billion; Walgreens, the highest average sales per store drug retailer – 217 units, $1.12 billion in estimated annual sales; and Kroger, which operated 31 stores in the region (including eight combo Marketplace units) and amassed estimated annual sales of $1 billion.

By class of trade, the leaders are: supermarkets – Giant/Landover (161 stores, $5.28 billion in sales); clubs – Costco (29 stores, $1.43 billion in extrapolated sales); mass – Walmart (163 stores, $4.77 billion in extrapolated sales); drug – CVS (624 stores and $3.02 billion in estimated sales); and convenience stores – 7-Eleven (1,126 stores and an estimated $1.95 billion in revenue). Additionally, the 20 military commissaries rang up annual sales of $666.9 million, continuing a decline of military commissary sales that’s occurred over the past eight years.

Viewed as a group, the 48 corporate chains in the market operated 5,114 stores and accrued $47.03 billion in annual sales, good for 97.54 percent of the Mid-Atlantic region’s $48.21 billion food and drug market.

Among all independent retailers (those operating between two and 17 stores), Rockville, MD-based MOM’s Organic Market now heads the leaderboard with 15 stores in the market producing annual estimated sales of $199.1 million. Baltimore-based B. Green & Co. followed with $185.8 million in annual volume at its 10 Baltimore area urban and suburban supermarkets. Other independent leaders included Karns Prime & Fancy Foods, Graul’s, Kennie’s, McKay’s, Eddie’s of Roland Park, Lauer’s and Geresbeck’s.

As a collective group, the 13 multi-store independent retailing organizations in the Mid-Atlantic operated 72 stores which garnered estimated annual sales of $918.3 million (down from $936.2 million last year). Independents controlled 1.91 percent of the region’s food and drug revenue.