ShopRite Rules Again In Highly Competitive $98B Marketplace

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Rite Aid had an active year and we’re not talking sales. The Camp Hill, PA chain initially planned to sell its more than 4,600 drug stores to Walgreens in 2015. When the Federal Trade Commission balked at that acquisition citing store overlaps, the deal was revised and last year Walgreens purchased about 1,900 Rite Aid stores. In March 2018, Rite Aid agreed to merge with supermarket giant Albertsons, which would create a retail entity with $83 billion in annual sales (shareholders will vote on the deal next month). During the past 12 months in the market, Rite Aid’s estimated sales dipped slightly to $3.57 billion at its 925 units including its Duane Reade banner which can be found primarily in Manhattan.

Rounding out the top 10 was Acme Markets, which had a solid year in Philadelphia and on the Jersey shore but continued to struggle at some of the 71 A&P units it acquired in 2015. The big trouble spot for Acme was Northern New Jersey where ShopRite, Stop & Shop and Wegmans have impacted its business. The Malvern, PA-based division of Albertsons saw the return of Jim Perkins to the helm. At its 166 stores, Acme amassed sales of $3.40 billion.

Other retailers that topped the $1 billion mark in annual sales in the region included Wawa, BJ’s, Target, Key Food, Weis Markets, Whole Foods, ASG, 7-Eleven, Wegmans, Trader Joe’s and Allegiance/Foodtown.

By class of trade, the leaders are: supermarkets – ShopRite/PriceRite/Fresh Grocer (264 stores, $14.97 billion in estimated annual retail sales); clubs – Costco (49 stores, $4.04 billion in estimated extrapolated sales); mass – Walmart (177 stores, $5.24 billion in estimated extrapolated sales); drug – CVS (1,206 stores and $5.77 billion in estimated sales); and convenience stores – Wawa (508 stores and an $3.30 billion in revenue). Additionally, the region’s eight military commissaries rang up annual sales of $97.4 million, the eighth consecutive year of sales declines of commissary volume.

Viewed as a group, the 78 multi-store retailers in the market operated 8,723 stores and accrued estimated sales of $96.61 billion in annual sales, good for 98.60 percent of region’s $97.99 billion food and drug market.