Feinberg: Amid Challenges, Grocery Business Still Attractive
Despite hyper competition and financial troubles for grocers like Marsh Supermarkets, a Purdue University retail expert says the industry remains attractive. Richard Feinberg says with U.S. sales expected to grow to $1 trillion in five years, groceries are not going extinct. "The problem with supermarkets is that their margin of error is really small because their profitability is so low," said Feinberg, in an interview on Inside INdiana Business Television. He adds that competition from the likes of Costco, Wal-Mart and Amazon, to name a few, shows no signs of slowing down.
Feinberg says while the grocery business faces challenges, there are lots of examples of successful concepts.
He says successful grocery chains are thriving by becoming more than simply a "vending machine for apples and bread."
"There are so many examples of successful, exciting, interesting , innovative grocery concepts," said Feinberg, pointing to Jungle Jim's International Market in Cincinnati, New York's Wegman's and Connecticut-based Stew Leonards. He adds traditional grocers, like Publix, can succeed with strong corporate culture and exceptional customer service.
Watch the full interview: