ARLINGTON, Va.—A new report from the Food Marketing Institute (FMI) revealed that supermarket sales are weathering the economic storm due to retailers controlling costs, discounting products and increasing private brands.
According to the “2009 Food Retailing Industry Speaks: Annual State of the Industry Review, ” supermarket sales increased 5.2 percent in 2008, and identical-store sales rose 4.5 percent, but these gains were offset by the 5.7 percent food-at-home inflation rate last year. Adjusted for inflation, sales declined 0.5 percent and identical-store sales 1.2 percent.
“The industry showed its resilience in the most challenging economy in modern history. Retailers aggressively discounted products and increased their lines of private brands to help American families lower their grocery bills. At the same time, they continued to control costs by improving efficiency and productivity, a hallmark of this industry,” said FMI president and CEO Leslie G. Sarasin.