For grocery retailers, growth has traditionally been slow and hard to come by; in terms of products offered, store formats, shopping experiences, etc., not much has evolved in the space over the past 50 years. The last major inflection point of change was the introduction of big box stores like Wal-Mart and Target (News - Alert), which put even more pressure on traditional retailers to innovate in order to grow their businesses.
You wouldn’t think that competition in grocery could get any worse, given it’s already slim margins and cutthroat jockeying for new shoppers and market share gains. But it is. Walmart for example, opened their 4,000 US store last year and added $10 billion in combined sales from 132 new stores– a figure higher than total annual sales for 80% of US grocers.