Food Wholesaling and Retailing

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Presentation transcript:

Food Wholesaling and Retailing Part D AGEC 364

Competition Among Food Retailers Competition is still strong but concentration is increasing. Consumer trends such as increased mobility, rising income, and price consciousness has added vigor to food retailing competition. Retail gross margin is the difference between what retailers pay for food and the selling price.

Retailing Developments Marketing Implications Because of their size, power, and strategic position, food retailers are referred to as the gatekeepers and channel captains of the food industry. They make many of the major market decisions about quantity, quality, and services provided by the entire food industry.

Retailing Developments Marketing Implications Retailers control the key resource—display space—that is vital to the success of farmers, food processors, and wholesalers.

Retailing Developments Marketing Implications More than any other segment, retailers practice marketing and orient the industry to satisfying consumer demands.

The Foodservice Market More than 700,000 foodservice establishments ranging from the familiar fast food outlet to the university cafeteria to the five-star gourmet restaurant provide food away from home for U.S. consumers.

The Foodservice Market Foodservice firms differentiate themselves by menus and store designs. About 50% of all new restaurants fail in their first year.

The Foodservice Market The foodservice market provides a year round demand for premium foods, because changing the menu is expensive. They demand consistent quality and regular service from their suppliers.

The Foodservice Market Because of the growth in eating away from home, the foodservice sector is increasing its influence on the demand and marketing of farm products.

Competition Among Food Retailers Competition is still strong Consumer trends such as increased mobility, rising income, and price consciousness has added vigor to food retailing competition Retail gross margin is the difference between what retailers pay for food and what they sell it for