—Lancaster Farming, Saturday. December 9.1967 16 What Has The Housewife Wrought? (Ed. Note: “What Has the Housewife Wrought?” is a Food Marketing Research ar ticle showing a bit of the problems the farmers have when dealing with the city side of food marketing. This is Part I of a two-part series.) Service, specials and successive mergers char acterize the supermarket industry today. The rea son? The better to attract and provide for today’s affluent housewife. Food retailing has come fu circle. In the old days it was the general store that sold ever thing from horse harnesses iJ soda crackers. Now it’s the ultramodern su permarket that sells everything from TV sets to pume-flavored yogurt. And today’s affluent customer apparently wouldn’t have it any other way, judging by her shop ping habits In fact, she’s the one who has made it all possible She prefers the convenience of buying a wide variety "of foods and nonfoods in one store at one time. She likes the new highly processed food lines even though they are more expen sive. Because of ner preferences, retailers have expanded their product mix to include more varieties of foods and more ex pensive foods To woo her, they have combined variable price and non-price merchandising Chain Reaction. This turn of events, however, has been a mixed blessing for grocery chains Historically, grocery chains depended primarily on price competition as a means of in creasing sales With the intro duction of the independent su permarket in the thirties, the chains found themselves com peting with size and variety as well as selected low prices For the most part the early cost advantage of the grocery chains has eroded away Affili ated independents now use chain methods of supply and distribution As a result, while the chains’ share of total U S grocery sales rose from 344 percent in 1948 to 47 0 percent in 1963, the share of affiliated independents kept pace, rising from 35 4 per cent in 1948 to 43 9 percent in 1963 After 1954 the growth of the affiliated independents ex ceeded that of the chains. From 1854 to 1963 the aver age market share of the four largest food retailing Arms in each of the 218 standard met ropolitan statistical areas—and this includes independent as well as national and local chain stores—increased from 45.4 per cent to 50.1 percent. But this increase was shown to be due entirely to net growth of local and regional Arms. On the average, the 20 largest gro cery chains in the nation con tributed some net increase na tionally, but experienced a slight net decline in local areas. Kay 1962 MILK REPLACER THE MILK AND ANIMAL FAT FORMULA • 2nd 4 yr. old cow Lane. 4-H ’67 FOR ALL BABY ANIMALS GUARANTEED TO PERFORM LIKE WHOLE MILK! Sunnycraft Kay General (GPB2) 4-11, 338 days - 1 7,571 M 697 fat Lifetime 55,282 M 2210 Fat "Kay" is the first 4-H Club project owned by Earl Stauffer, son of Mr. and Mrs. Clarence Stauffer, Sunny- craft Farm, Rl, Ephrota. For Top Results ... Use Good Stock, Green Pastures Dairy Feeding Program i m srocK Move to Mere*. Though gro- (Inni expanding their market Promotion accounted for 18 eery chaina have been merging share to 43 percent from 1958 percent of total supermarket since the 1920'5, the merger to 1983. expenses In 1984; building oc* tempo increased fivefold in 1955 i n addition, some grocery cupancy (rent, mortgage, tax* when groceiy chains made ac. chains have created their own es, «tc.), 14 percent; heat, light quisltions totaling $559 million, entralized wholesale purchasing and power, 4 percent. The larg* In everv vear since then aro- agencies. The largest serves 32 «t single operating cost to su* eery chains have made acquisi- chains. permarkets was labor-46 per* tlons of over $3OO million with Food manufacturing by the cent of operating expenses, the peak in 1963 at $568 mil- 40 largest chains has also in- (Continued next week) lion. Setting the pace, the 20 creased. Emphasis has been on largest chains acquired 297 bread and dairy products, with firms with combined sales of *a view to reducing costs of dis- $3.1 billion—representing the tributing these items from j n Argentina, a greater part bulk of the mergers for the plant to retailer. of the population is made up of period- Operating Expenses Up. To- Caucasians than any other South A side effect of these mer- tal operating expenses of super- American country. Only about gers has been an increase in markets, as reported by a lead- two Argentines in 100 are In* concentration of grocery whole- ing trade association, rose 21.9 dians and about two in another sale firms with the 50 largest percent from 1954 to 1963. 100 have some Indian blood. Good Management r 0 Rohrerstawn, Pa. and the Miller & Bushong, Inc. FINEST SERVICE ANYWHERE Have YOU ever seen this calf ? ? Sure you have! 9 Grand Champion Holstein, Manheim Fair ’63 • 2nd Place Sr. Yrlg. Lane. 4-H ’63 # 2nd Place Get S. E. Black & White Show ’63 • Champion Fitter All Breeds Lane. 4-H ’65 Kay in 1967 Ph. Lancaster 392-2145 HAS FEW INDIANS (Area Code 717)
Significant historical Pennsylvania newspapers