Grocers Shouldn’t Worry about Market Dilution

LAS VEGAS-Grocery stores are seeing a jump in traffic for a variety of reasons, such as consumers trying to cut down on restaurant visits, more grocers trying new concepts and ethnic stores catching on across the country. The topic was discussed in-depth during the “Papa’s Got a Brand New Bag” session Tuesday morning at RECon 2011 here at the Las Vegas Convention Center.

Grocery retail is a $900 billion industry, and growing, according to the panel, which included five experts on the asset class. Landlords love grocery stores today, because of their stability and ability to draw in people. However, the asset is also diluted, as more and more different-style chains jump into carrying food, the panel said. Still, consumers are flocking to each store, whether it’s a discount grocer to a Trader Joe’s, or a conventional chain or a ethnic market, the panel said.