CAPE GIRARDEAU'S CHANGING GROCERY MARKET

The grocery/food market scene is a changing one.

Early supermarkets sold food only.

As few as 15 years ago, there were 26,800 supermarkets in the U.S., averaging about 23,000 square feet of selling space, with about 14,000 items.

Today's supermarkets are larger and fewer, with about 24,000 stores nationally, each averaging about 35,000 square feet and carrying more than 25,000 items.

These items include food. They also include auto supplies, cleaning products, cooking utensils and greeting cards and some even have post office and banking facilities.

Many markets today feature 45,000, 60,000 and up to 100,000 square feet of spaces. Even Wal-Mart, which includes grocery markets in its supercenters, is getting in on food sales.

"There's a lot of competition for the grocery dollar," said Dennis Marchi, manager of the 55,000-square foot Schnucks Kingshighway store in Cape Girardeau.

The pie is just so big, said Marchi. And it's being divided by supermarkets, stores like Wal-Mart, Kmart and Venture, quick shops, convenience stores and the small "mom-and-pop" operations.

In Cape Girardeau County, total food sales were reported at more than $200 million in 1995, the latest year totals were available.

About three-fourths of that total -- $121.3 million -- was spent at grocery stores in the county. The remainder was spent on "eating out."

In today's society, with both parents often working, eating out has increased, said Marchi.

Cape Girardeau County totals reflect that.

During a recent year, grocery sales decreased $5 million in Cape Girardeau County, according to chamber of commerce statistics. That same year, "eating out" food sales were up $15 million.

During a recent three-year period -- 1993-1995 -- food sales at grocery stores totaled $353.6 million and restaurant food sales totaled $220.6 million.

In Cape Girardeau County and nationally about 75 to 77 percent of grocery store sales are in supermarkets, with 23 to 25 percent going to convenience stores, quick shops, health-food stores, superettes and smaller grocery operations.

With closure of Schnucks Cape Midtown, a 33,000 square-foot market, later this month, Cape Girardeau will have two free-standing supermarkets over 20,000 square feet -- Schnucks on South Kingshighway and Food Giant on North Kingshighway -- a 15,000 square foot Aldi's, and two 10,000 square foot Save-A-Lot operations.

But, about 55,000 square feet of the 165,000 square foot Wal-Mart Supercenter is also devoted to grocery sales. And, Sam's Club, located adjacent to Wal-Mart in Cape West Business Park, offers bulk grocery products.

A quick count reveals about 10 grocery markets of 10,000 square feet more throughout Cape Girardeau County, and more than 40 quick shops, convenience stores and other small grocery marts.

Warehouse operations which provide no-frills outlets that appeal to price-conscious consumers, is another group sharing in the grocery dollar.

These type of stores -- including Sam's Clubs -- have increased from 1,677 operations to more than 3,700 stores during the past 15 years, and have increased their share of supermarket sales from six to 15 percent during the same span of time.

Supermarket sales were near $300 billion nationally two years ago, and accounted for 77 percent of sales of all grocery items.

A recent study predicts that supercenter sales will grow by as much as 20 percent over the next five years, and Wal-Mart already has 43 percent of the supercenter sales business.

A supercenter is described as a combination of discount store and grocery store.

Wal-Mart food sales will reach $25 million annual by 2001, according to a recent study.

That would equal the sales of the current volume of Kroger, which is currently the largest supermarket chain in the U.S., with more than 1,400 stores. Kroger is headquartered in Cincinnati, Ohio.

Second on the list of retail grocery sellers American Stores, headquartered in Irvin, Calif. American Stores has more stores than Kroger, but is second in total sales volume.

Wal-Mart's push into the grocery is evident in the Midwest and Missouri. At the beginning of this year, Missouri had 29 Wal-Mart supercenters, more than any other state except Texas.

Craig Schnuck, chief executive of Schnucks Markets Inc., headquartered in St. Louis, said recently that his company competes with Wal-Mart Supercenters in some towns, including Cape Girardeau, as well as against Super K (Kmart's supercenter concept).

Also getting into the retail grocery business are some food wholesalers, including Supervalu Inc., which purchased St. Louis-based wholesaler, Wetterau, in 1992.

Supervalu, which has a distributing center in Scot City, is one of the biggest food wholesaler in country, providing products to 4,350 independent grocery stores in 47 states.

And, when Supervalu purchased Wetterau, it increase the company's presence in grocery retailing. Wetterau generated about $1.1 billion a year in retail sales from company-owned chains like Shop 'n Save, Laneco and Save-a-Lot.