Guest Blogger Michael Stoler: Can We Expect to See Grocery Stores in the Metro Market Selling Appare
Grocery stores profitability margin are less than three percent. Grocery markets in the region have increased their offerings in an attempt to increase their profit margin. Late last year, Kroger, the country’s largest grocer, in the company’s 129 year history added a dedicated apparel section at its Marketplace store in Mansfield, Ohio.
Business leaders in that market believe that the test will be watched closely by hundreds of independent and national grocers, said Nate Filler, CEO, Ohio Grocers Association.
“There is only about a 1% profit margin in the grocery business, so the best thing you can do is increase traffic in the store,” he said. “Others grocers will be taking note to see if this trend they will eventually need to pick up on.”
The National Retail Federation, publication Stores reports that three of the hottest areas in retailing right now are groceries, the result of food price inflation and contraction among supermarket operators; trendy fashions, due to recovery in consumer apparel spending, and the intersection of e-commerce and telecommunications mostly because this is in the 21st century. With the growth in the grocery business, especially due to the sale of organic and prepared foods, industry leaders believe the sale of certain apparel in selected markets can aid in growth and profitability.