Superior Supermarkets

Superior Supermarkets

One Step Closer to Home

BUOM 485

10/28/2011

By: Annette Behunin, Brandon Liesenfelt,

James Lewicke, Jon Templeton,

and Melissa Henderson

Background

Company Background

Superior Supermarkets is a division of Hall Consolidated, a privately owned wholesale and retail food distributor. Superior Supermarkets was acquired in 1975 by Hall and is the smallest of the three supermarket chains that Hall owns. Hall’s overall revenues in 2002 were $2.3 billion and Superior’s sales represented 8.4% of Hall’s revenue or $192.2 million. Superior’s median store size is 20,730 sq ft compared to the overall U.S. store size of 44,000 sq ft. In each of their trade markets, Superior is ranked either the number one or number two chain in market share.

Market Background

There are four major competitors in the Centralia, Missouri market that comprise 85% of all food sales in 2002. Total market sales were $62.3 million. Superior’s main competitor is Missouri Mart, best known for their groceries and special purchase displays. However, the food sales volume leader sacrifices quality and freshness for strength in production and a big box, warehouse feel. Missouri Mart is the largest store with a 120,000 square footage, resulting in a less orderly and less clean shopping experience. Missouri Mart enjoyed the top market share position in 2002 with 27%. Their shoppers are in a slightly lower socioeconomic demographic with a median household income of $30,000 versus Centralia’s overall median income of $36,000.

Harrison held 22% market share, just slightly behind Superior’s 23%. Harrison is considered a well managed chain, recognized for their clean, orderly, and attractive environment. Their stores are significantly smaller than Missouri Mart and twice the size of Superior at 50K square feet. Harrison is believed to have captured most of the middle and upper-income groups in Centralia with annual household incomes greater than...