—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)