Supermarket sales - demographic breakdown

American Demographics, Oct, 1997 by Bill Stoneman

Alaskans spend more in supermarkets than people anywhere else in the U.S., according to the trade publication Progressive Grocer. It is unlikely, however, that a hearty appetite accounts for much of the margin above the national average of $1,218, according to the magazine's vice president for research, Walter Heller.

Alaska's figure is particularly high because of the high cost of shipping food there, Heller says. Other top-ranking markets for supermarket per capita spending include Spokane, Washington; Tampa, Florida; Portland, Oregon; and Phoenix, Arizona. Supermarkets probably don't charge higher prices in these areas, but they probably do have a greater share of total grocery sales compared with smaller stores (with less than $2 million in annual sales) and larger ones (warehouse clubs). Supermarkets chalked up 76 percent of 1996 grocery sales nationwide, but the figure varies considerably from market to market.

Younger cities tend to have higher per-capita supermarket sales. "They don't have a downtown infrastructure with Mom-and-Pop stores that do a lot of business," says Heller. At the other extreme, neighborhood bodegas account for 40 percent of grocery sales in Brooklyn, New York. At $901, New York City residents spend less per capita in supermarkets than anyone else does.

With the exception of Fargo, North Dakota, the bottom of the list is dominated by the nation's largest cities, where smaller stores achieved dominance long before today's mammoth supermarkets were built. Minneapolis, Chicago, Detroit, and Los Angeles all had less than $1,000 per person in 1996 supermarket sales. The propensity to eat out also affects supermarket spending in big cities. Alternatives to buying groceries and cooking at home are particularly plentiful in places like New York, Los Angeles, and Chicago.

For more information, contact Progressive Grocer, 263 Tresser Boulevard, Stamford, CT 06901; telephone (203) 325-3500.