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CHAPTER 2

Review Related Literature and Studies

Foreign(1)

May 1, 2012

Publisher: Elsevier Inc.

Publication: American Journal of Preventive Medicine

Author(s):Glanz K, Bader MD, and Lyer S.

This literature review points to in-store strategies to promote the purchase of healthful

foods and discourage the purchase of unhealthful foods. The review also suggests

public health researchers can leverage methods used by the grocery industry to assess

consumer behavior.

Americans buy most of their food at grocery stores. In-store marketing potentially offers

the opportunity to influence what consumers put in their carts to take home and eat.

Most of the research on how to influence consumer food store purchases has been

conducted by marketing, consumer behavior and industry researchers, not by public

health researchers. This review of 125 peer-reviewed articles, looks at industry and

academic literature from 1995–2010 on methods to influence consumer food purchases

in physical grocery stores.

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Foreign(2)

January 14, 2015

JOSEPH HOULIHAN

Joseph Houlihan lives and writes in Minneapolis, MN.

Market outside of San Francisco. As the premier walked the aisles, marveling at the

wealth of food, innumerable roasted chickens, seemingly unlimited flawless apples

available for any household, the scions of agri-business chuckled into their brandies.

The astounded little man highlighted the great paradox of socialist production by the era

of supermall sandmegamarts, grocery stores reached notoriety pitch in mainstream

culturebecause there was something definitively alien, notofthisworld, about their

glowing aisles and products, something lurking beneath the pristine reassurances. The

very sensation of entering a grocery store, or megamart, necessarily evokes a sense of

dislocation as every Walgreens, Target, or Duane Reade feels like every other. And as

you chart the homogenizing influences of neoliberal globalization and the rise of the

multi-national, these sites gain prominence in the global consciousness. Thom Yorke is

so boredThom Yorke is so bored In 2000, French critic Annie Ernaux described the

strange sensation of corporate-speak entering her own lexicon.Their universe of

discourse is populated by self-validating hypotheses which, incessantly and

monopolistically repeated, become hyponotic definitions of dictations.”

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The ideology of multi-national corporations corresponds to a concrete articulation of an

atomized reality where inequalities in labor relations and the sins of global supply chains

are hidden under the veneer of civility and wealth (supermarkets).

Foreign(3)

2009

Michael A. Gunderson and James A. Sterns, in Postharvest Handling (Second Edition),

Grocery stores are the first group that comes to mind when thinking of retailers but fresh

produce can also be purchased in convenience stores, malls, by mail order and even on

the Internet. The top 75 North American food-based retailers (grocery stores,

supercenters, wholesale clubs, convenience stores) accounted for $830.19 billion in

sales in 2007 (Supermarket News, 2008b). The top five North American retailers include

(1.Wal-Mart Stores: $240.8 billion in sales; 2.Kroger Co.: $69.0 billion in sales; 3.Costco

Wholesale Corporation: $63.1 billion in sales; 4.Supervalu: $43.9 billion in sales; and

5.Safeway: $42.3 billion in sales.) The top five retailers accounted for 55% of the sales

volume. Internet-based retailers have been around since the 1980s. Internet grocery

retailers have come and gone (mostly gone), with one exception, Peapod. Founded in

1986, it takes orders from customers onlineand then someone from Peapod physically

goes to the retailer to pick the items requested by the customer. The minimum order

size is $75. Next, Peapod delivers the grocery items to a customer at retailer cost plus a
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delivery charge. Before 1996, it provided an online grocery shopping service in

partnership with Jewel in Chicago and surrounding towns, Safeway in San Francisco,

California, Randall’s in Houston, Texas and Kroger in Columbus, Ohio. Peapod was one

of the earliest Internet start-ups; the company made the Inc.Between 1997 and 2000,

Peapod expanded into Boston and Watertown, Massachusetts, Long Island, New York

and Norwalk, Connecticut in partnership with Stop & Shop. In late 2000, they entered

Washington DC and surrounding towns, cooperating with the Giant Food supermarket

chain. Royal Ahold bought 51% of Peapod’s shares in June 2000, and in August 2001

they bought out the entire company. As a result, Peapod’s only remaining retailer

contracts are with Royal Ahold’s two primary American chains, Stop & Shop and Giant

Food (Peapod, 2008). One of the reasons for the success of Peapod has been their

ability to take care of a primary need for time-starved consumers convenience. While

the idea of using this type of service has a certain appeal, many consumers are wary of

turning over the selection of perishable items, such as produce, to a stranger. For other

consumers, there is value in spontaneously shopping for items that answer the

question: “what’s for dinner?” The other reason there have not been more companies

entering into the e-commerce grocery retail business is that no one has been able to

overcome effectively all the transaction costs of buying in bulk and selling by the piece

to consumers distributed over large areas. Peapod has chosen its marketing to coincide

with densely populated areas to drive up sales to cover costs.In an annual survey of

grocery shoppers, when asked to rank the importance of quality fruits and vegetables
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among top factors in selecting the primary grocery store, 77% of respondents named

produce a very important factor, and 7% ranked it as the overriding factor.In 2006, the

average consumer spent $10.23 on produce out of every $100 spent on groceries (The

American Institute of Food Distribution, Inc., 2007).Grocery retailing is comprised of the

following formats (Food Marketing Institute, 2008), with produce sold in each format:

•Conventional supermarket: the original supermarket format offering a full line of

groceries, meat and produce, with at least $2 million in annual sales; a typical store

carries approximately 15 000 items, offers a service delicatessen and frequently a

service bakery; •Superstore: larger version of the conventional supermarket with at least

40 000 square feet in total selling area and 25 000 items; •Food/drug combo:

combination of superstore and drug store under a single roof, with common checkouts;

these stores also have a pharmacy; •Warehouse store: low-margin grocery store

offering reduced variety, lower service levels, minimal decor and a streamlined

merchandising presentation, along with aggressive pricing; in general, warehouse

stores do not offer specialty departments. •Limited-assortment store: “bare-bones,” low-

priced grocery store that provides very limited services and carries fewer than 2000

items with limited, if any, perishables.•Convenience store (traditional): small, higher-

margin store that offers an edited selection of staple groceries, non-foodsnd other

convenience food items, i.e. ready-to-heat and ready-to-eat foods; the traditional format

includes stores that started out as strictly convenience stores, but might also sell

gasoline;
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•Convenience store (petroleum-based): the petroleum-based stores are primarily gas

stations with a convenience store; •Hypermarket: a very large food and general

merchandise store with approximately 180 000 square feet of selling space. While these

stores typically devote as much as 75% of the selling area to general merchandise, the

food-to-general merchandise sales ratio is typically 60:40, e.g. Bigg’s; •Wholesale club:

membership retail/wholesale hybrid with a varied selection and limited variety of

products presented in a warehouse-type environment. These 120 000 square foot

stores have a grocery line dedicated to large sizes and bulk sales. Memberships include

both business accounts and consumer groups, e.g. Sam’s Club, Costco and BJ’s; •Mini-

club: a scaled-down version of the wholesale club. The mini-club is approximately 25%

of the size of a typical wholesale club, and carries about 60% of the SKUs, including all

of the major food and laundry departments and a limited line of merchandise (soft

goods, office supplies and opportunistic, one-time buy) •Supercenters: a large food/drug

combination store and mass merchandiser under a single roof. The supercenters offer a

wide variety of food, as well as non-food merchandise. These stores average more than

170 000 square feet, and typically devote as much as 40% of the space to grocery

items.
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Local(1)

August 11, 2017

THE PHILIPPINES could have the 5th largest supermarket and grocery industry in

theregion by 2021, with domestic consumption being pushed by a strong economy

alongside a steadily-growing population.International grocery research group IGD said it

projects 9.3% year-on-year average growth in the country’s retail market between 2016

and 2021. With retail sales amounting to P4.53 trillion in 2016, the market could grow to

as much as P7.08 trillion in the next five years. The increase in consumption will put the

Philippines behind China,India, Japan and Indonesia in terms of retail market size. “The

Philippines is an exciting market to watch. Modern trade currently accounts for about

20% of total grocery retail sales and is growing rapidly. We expect to see fast growth in

both the number of outlets and sales for modern grocery retailers,” program director for

IGD’s Asia Pacific research Shirley Zhu said in a statement. The research firm cited

grocery retailers SM Retail, Puregold Price Club, Inc., and Robinsons Supermarket as

dominant players. SM Retail, a unit of SM Investments Corp., is ramping up the

expansion of its mid-sized and small-format stores. Of the 144 stores it opened in 2016,

111 were under the Alfamart brand, which is a joint venture with Indonesia’s PT

SumberAlfariaTrijaya. The company’s focus is to expand outside Metro Manila, with

80% of its openings last year located in the provinces.

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Local (2)

High consumer confidence, combined with sustained economy, drives the country to

become one of the most robust retail markets in the Southeast Asia today. Among all

the subsectors of the retail segment, grocery retailers continue to have the most impact

on the economy. According to the 2017 Food Retail Sectoral Report by Global

Agricultural Information Network, the largest grocery retailers in the country —SM

Supermarket, Robinsons Supermarket and Puregold — still dominate the food retail

business that contributed to the robust growth of the industry in the last five years. The

report showed that in 2016, supermarket sales reached $10.21 billion in retail value

sales. It added that supermarkets continue to be the most frequently visited modern

retailer due to its proximity to residential areas or in shopping malls where consumers

regularly visit to shop and recreate. A 2017 Oxford Business Group (OBG) report noted

that grocery retailers continue to have the most impact on the economy due to its more

diverse offerings of day-to-day essentials, which satisfy the bulk of consumption needs

for the vast majority of Filipino consumers. “As such, retailers remain heavily committed

to providing increased access and product diversification for items such as food and

beverages, beauty and personal care, home care products and so on,” the report said.

To provide local consumers more convenience and accessibility, grocery retailers are

pursuing smaller store formats. Since 2016, local grocery retailer giants are

aggressively extending their reach through convenience stores and minimarts that allow
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aggressively extending their reach through convenience stores and minimarts that allow

them to cater to consumers in residential areas and the country’s business districts.

Local (3)

According to Nielsen’s latest Shopper Trends report, while supermarkets increased in

store count by 8%, convenience stores are leading the expansion of the small store

format concept in the Philippines, showing a growth of 20% in 2017 and 15% the year

before that. In 2013, there were only more than 1,620 convenience stores in the country

versus close to 4,300 convenience stores as of Q1 2018. Shopper Trends is a

syndicated annual report that Nielsen conducts across 54 markets globally. It provides a

comprehensive overview of retail environment trends and an understanding of shopping

behavior across the different trade channels. It provides insights on where, when, and

how often people shop, and their emotional commitment and perceptions about key

modern trade retailers. Big retailers are not far behind in adopting the small store

format. In fact, in the last five years, small store formats of supermarket chains have

grown close to 220 stores in 2013 to more than 410 stores as of Q1 2018 as these big

supermarket chains are focusing on expanding their small format stores. The report also

debunks the myth that price doesn’t matter to small store format shoppers. In other

markets, shoppers trade off higher price for convenience but it is not the case in the

Philippines. Small store shoppers in the Philippines have ranked price-related attributes
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high in the list. To address this shopper preference, Cua advises that retailers and

manufacturers should price products close to the prices of bigger stores. Carrying

products that sit on lower-priced tier and offering value through promotions can also

woo shoppers to visit more and increase their spend.

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Marketability of Selected

Grocery Stores

Sy 2019-2020

UNIQUE OCCIDENTAL

CHARY MAE MONTALBA

MELANIE NOMO

PRIETCYGALE LABUCAY

RHEAN LICONG

JHOMAIMA MACAPANTAR

STEVEN KYLE ROJAS

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Marketability of Selected

Grocery Store

Grocery stores also offer non-perishable foods that are packaged in bottles, boxes, and

cans; some also have bakeries, butchers, delis, and fresh produce. Large grocery

stores that stock significant amounts of non-food products, such as clothing and

household items, are called supermarkets. Some large supermarkets also include

a pharmacy, and customer service, redemption, and electronics sections. Some

groceries specialize in the foods of a certain nationality or culture, such

as Chinese, Italian, Middle-Eastern, or Polish. These stores are known as ethnic

markets and may also serve as gathering places for immigrants. In many cases, the

wide range of products carried by larger supermarkets has reduced the need for such

specialty stores. The variety and availability of food is no longer restricted by the

diversity of locally grown food or the limitations of the local growing season. Grocery

stores operate in many different styles ranging from rural family-owned operations, such

as IGAs, to boutique chains, such as Whole Foods Market and Trader Joe's, to larger

supermarket chain stores such as Walmart and Kroger Marketplace. In some

places, food cooperatives, or "co-op" markets, owned by their own shoppers, have been

popular. However, there has recently been a trend towards larger stores serving larger

geographic areas. Very large "all-in-one" hypermarkets such as Walmart, Target,

and Meijer have recently forced consolidation of the grocery businesses in some areas,
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and the entry of variety stores such as Dollar General into rural areas has undercut

many traditional grocery stores. The global buying power of such very efficient

companies has put an increased financial burden on traditional local grocery stores as

well as the national supermarket chains, and many have been caught up in the retail

apocalypse of the 2010s. As of 2011, 1.3 billion tons of food, about one third of the

global food production, are lost or wasted annually. The USDA estimates that 27% of

food is lost annually.[29] In developing and developed countries which operate

either commercial or industrial agriculture, food waste can occur at most stages of

the food industry and in significant amounts. Retail stores can throw away large

quantities of food. Usually, this consists of items that have reached either their best

before, sell-by or use-by dates. Food that passed the best before, and sell-by date, and

even some food that passed the use-by date is still edible at the time of disposal, but

stores have widely varying policies to handle the excess food. Some stores put effort

into preventing access to poor or homeless people while others work with charitable

organizations to distribute food.

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Statement of the Problem:

1.Do you think its also hard for them to manage that grocery store?

2.What do you think is the reason why some item in the groceries getting higher?

3.what are the techniques that they can do to manage the grocery properly?

4.What are they doing when they entertain a customer to buy to that grocery?

5.What do you think about when you are in grocery store?

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Assumption