The future of department stores?

Emily Jane Fox, writing for CNN Money:

Ten years ago, groceries made up a little more than 20% of Wal-Mart’s net sales, or about $48 billion. In 2012, groceries accounted for 55%, or roughly $244 billion. …

The grocery push gets customers in the door — and opening their wallets — more often, according to Burt Flickinger III, managing director of Strategic Resource Group.

“Our research has shown that over the last ten years, the average number of shopping trips a customer makes to Wal-Mart has gone from 12 per year to 52 or more,” he said. “Since customers spend on average between $50 and $60 in total per trip, that’s an extra $2,000 per customer each year that Wal-Mart is bringing in.”

333% growth in shopping trips per customer by adding grocery? Brick-and-mortar retail success is all about driving traffic. Why not pick up milk at Macy’s?

NOTE:
In the US, grocery broke 50% of Wal-Mart’s sales in 2009 according to The Wall Street Journal.

Published by Bobby Grasberger

Find Bobby on Twitter @BGrasberger.

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