Who are the Largest Grocery Distributors in the World?

Who are the Largest Grocery Distributors in the World?

The U.S. industry and Trade Outlook and the U.S. Department of Commerce/International Trade Administration said that “wholesale trade involves organizations that sell products to retailers, merchants, contractors and/or industrial, institutional and commercial users.”

About 20 percent of retail channels in the U.S. that are among the largest in the world come from the grocery store and supermarket channels. This statistic alone shows that the grocery store retailers in the U.S. are commanding a lot of influence in the area of grocery distribution.

The pressure the big wholesalers and warehouse chains are mounting on them in order to steal a large chunk of the retail grocery store share cannot deter them from succeeding. Each year, there are changes taking place in the largest retail grocery store chain around the world. Now, when you compare the 2013 list of largest grocery distributors with that of 2012, there are notable and substantial changes that took place. These changes have made some grocery distributors bigger and larger than their counterparts. Here are some of the biggest grocery distributors in the world at the moment.

1. Amazon

It is no longer news that Amazon has surpassed Walmart as the biggest online grocery distributor in the universe. Based on many factors such as profits, market value, and assets; this eCommerce giant moved to #28 on Forbe’s Global 2000 list of world’s largest public companies. These stats were strong enough to push this title away from Walmart. The race to Amazon’s lordship did not start today. The company has been charting a path to retail domination in the previous years by including a number of Americans who subscribe to Amazon Prime yielding 100 million in 2019. Amazon has also increased the benefits attached to its annual membership in an attempt to make it a must-have in every household, such as giving special discounts at Whole Foods, investing heavily in television, movies, and expanding free shipping.

2. Walmart

Walmart began in Arkansas in 1962. Since then it has evolved into an eCommerce juggernaut and the top grocery distributor in the country, with more than 5,000 stores and clubs all over America. Walmart serves its customers and members more than 200 million times a week around the world.

The company is the world’s largest brick-and-mortar retailer with a big margin. Walmart reported global revenue of $485.7 billion for its 2015 fiscal year, a year-over-year increase of about 2 percent. It operates 11,453 store locations in 27 countries. About $228 billion of its 2015 revenue, almost 60 percent of the total, is attributed to operations in the United States.

As one of the largest grocery distributors, Walmart has one of the largest retail support distribution networks globally. It has largely grown its e-commerce sales through acquisitions and the expansion of grocery pickup and delivery.

2. Kroger

Kroger Company is the third-largest grocery retailer in the world by revenue and the biggest grocery retailer in the U.S. It recorded total sales of $108.5 billion for the 2014 fiscal year, an increase of 10.2 percent over the previous year. Kroger has 2,625 supermarkets and multi-department stores, which combine to make up 93 percent of company revenue.

Also, Kroger operates 782 small convenience stores as well as 326 jewelry stores. It operates stores under various brand names such as Kroger, Ralphs, and many others. The company’s market capitalization is about $40.4 billion.

The Kroger Company has grown to become one of the largest grocery distributors since its founding in 1883. It has become American’s largest supermarket chain by way of its revenue and second-largest general retailer. Kroger is one of the top grocery distributors that has 36 distribution centers that deliver its products to 2,622 stores in 34 different states across the U.S.

Online is the trending platform now ….

If there is one happening trend in grocery distribution, it is that more sales are taking place online even while you are reading this article. Online shopping is growing significantly faster than brick-and-mortar stores.

The U.S. Census Bureau reported that online retailers brought in almost half a trillion dollars in the U.S. over the previous year with about 9 percent of total sales. Online sales are growing at a rate of 15 percent yearly, compared to about 5 percent for the overall retail industry.

On a global level, the trend is getting stronger. Research shows that 1.66 billion internet users spent $2.3 trillion in 2017. By 2020, this figure is expected to double. Little wonder some of the world’s largest internet companies are e-commerce companies. Meanwhile, many brick-and-mortar grocery stores are moving aggressively into online trading to explore this trend effectively and protect their investment.