Supermarkets Inc: Inside a $500 Billion Money Machine
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The typical modern American supermarket stocks 48,000 items, each battling for precious shelf space. How do they get there? Why are they arranged the way they are? Did you know that some stores use heat maps to track which aisles you walk down — and which ones you don't? Or that they put the milk at the end of the aisle so you're forced to pass a hundred other items on your way to get it? It's all done to gain an edge in a cutthroat business built on razor-thin margins.
CNBC’s Tyler Mathisen goes behind the scenes for a fascinating look at today’s supermarket industry. It is the story of a crowded and brutal business generating half a trillion dollars in annual sales. Established brands like Safeway, Giant Eagle and Kroger are cultural icons as familiar as our own street names, but they are under constant attack from brilliant upstarts like Whole Foods, big box retailers like Wal-Mart and Costco, and from ever-changing public tastes. Go behind the familiar facade of your neighborhood market to see how it really works.
CNBC’s Tyler Mathisen goes behind the scenes for a fascinating look at today’s supermarket industry. It is the story of a crowded and brutal business generating half a trillion dollars in annual sales. Established brands like Safeway, Giant Eagle and Kroger are cultural icons as familiar as our own street names, but they are under constant attack from brilliant upstarts like Whole Foods, big box retailers like Wal-Mart and Costco, and from ever-changing public tastes. Go behind the familiar facade of your neighborhood market to see how it really works.
A Day in the Life
The ultimate example of bountiful America is the modern day supermarket. It’s a demanding business catering to millions of shoppers who last year earned the industry more than $500 billion in yearly sales.
The ultimate example of bountiful America is the modern day supermarket. It’s a demanding business catering to millions of shoppers who last year earned the industry more than $500 billion in yearly sales.
The Psychology of Shopping
There’s a dizzying array of high-tech tools in the age-old struggle to sell — heat maps tracking the aisles you walk down, video monitoring and loyalty cards — supermarkets are using every device in their arsenal to learn as much as they can about you.
There’s a dizzying array of high-tech tools in the age-old struggle to sell — heat maps tracking the aisles you walk down, video monitoring and loyalty cards — supermarkets are using every device in their arsenal to learn as much as they can about you.
The Battle for Shelf Space
Shelf space is limited and for every bottle, box or package, there’s a desperate competitor fighting for that same turf. For an established brand like Henkel, makers of Dial soap and Right Guard deodorant, there’s a never-ending struggle to stay fresh, current and on display.
Shelf space is limited and for every bottle, box or package, there’s a desperate competitor fighting for that same turf. For an established brand like Henkel, makers of Dial soap and Right Guard deodorant, there’s a never-ending struggle to stay fresh, current and on display.
Whole Foods
Whole Foods is arguably the most influential, and by some measures, the most successful supermarket chain in the world. The specialty gourmet store has grown into a Fortune-300 company offering specialty foods and locally grown organic produce.
Whole Foods is arguably the most influential, and by some measures, the most successful supermarket chain in the world. The specialty gourmet store has grown into a Fortune-300 company offering specialty foods and locally grown organic produce.
Independent Groceries
In many towns across the country, there remains one or two locally owned, independent grocers. In Santa Fe, N.M., that would be Kaune’s — a nearly 100-year-old neighborhood market where customer service helps set the store apart from the national chains.
In many towns across the country, there remains one or two locally owned, independent grocers. In Santa Fe, N.M., that would be Kaune’s — a nearly 100-year-old neighborhood market where customer service helps set the store apart from the national chains.
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