Target + Walmart Source Of Almost Almost 40% Of Twin Cities Grocery Purchases
The big continue to get bigger. And so-called "big box stores" continue to gobble up market share in the competitive metro Minnesota grocery business.
The new numbers that details where Minneapolis-St. Paul customers got their groceries in 2021 are out. One easy takeaway from the data presented shows that large multi-product stores like Target and Walmart continued their gains in market share while smaller stores continued to represent a much-smaller piece of the grocery sales pie.
At the top the list for grocery market share in the Twin Cities is Minnesota and Minneapolis-based Target. According to the numbers compiled by Chain Store Guides and shared by Axios, Target accumulated a 19% market share for the metro. That number is up from last year; in 2020, Target held down an 18.3% market share.
It's also worth looking at the store that continued their run in second place: Walmart. In 2021, Walmart Stores accumulated a 17.2% market share, which is only slightly down from their ranking last year (in 2020) when they received a 17.6% share.
What's notable is that when you combine the market share numbers for the Target and Walmart - the top two stores where customers in the Twin Cities obtained their groceries from - they represent a market share of 36.2%; rounding up, that means that almost 40% of Twin Cities grocery shoppers get their weekly food products from one of those two "big box" stores.
Looking at the third place ranking, Cub Foods/Supervalu, Inc. sits there with a 14.7% market share for 2021; that's down almost a full point from 2020 when Cub Foods garnered a 15.5% market share.
The third place ranking for Cub Foods and it's corresponding approximate market share of 15% is worthy of note because it represents an almost total role-reversal when compared to 25-30 years ago. Back in the 1990's, data shows that Cub Foods "reigned supreme with 40% of the market". They were also "in the top spot as recently as 2018".
So what's going on? Lots.
Along with a lot of other things, the two-plus year pandemic has changed where and how customers obtain their food. First - grocery store sales numbers rose to record numbers as the majority of people ate more meals at home than they have in generations.
But it's also worth looking at how customers obtained those groceries they needed for home-cooked meals. "Interest in contactless shopping options such as online ordering and curbside pick-up....also soared". While smaller grocery stores have scrambled to provide those services, online ordering and curbside pick-up has predominantly been only found at larger chain stores - like Target and Walmart.
One other interesting note from the new grocery store market share numbers: "Nine out of ten [customers] shop at two or more stores a month"; that means that store loyalty has eroded from where it has been in the past.