It’s not surprising California, especially Southern California—with its proximity to superb growing regions, international trade, and a diverse population and workforce interested in a healthy lifestyle—would be able to support an exciting and competitive supermarket environment.
Overall, there are 4,700 supermarkets and grocery stores doing business in California (down 1 percent in 2021 compared to 2020) representing $82 billion in revenue and employing over 304,000 Californians, according to the IBISWorld website.
As if having such a bounty of food-themed retailers isn’t enough, what’s even better is the amazing variety of stores and concepts throughout the state and SoCal.
From high-end specialty shops with pricey picks to heavy discounters dominated by no-name brands—all have tried to ramp up their fresh fruit and vegetable offerings in the last few years.
Among the well-known grocery retailers are Kroger Company, which operates 300 units statewide (including the Ralph’s and Food 4 Less banners in SoCal and Foods Co. and City Market up north), and Albertson’s Companies, Inc., which has almost 600 locations (including Vons, Pavilions, and Safeway) across the state.
Other popular retailers include Homegrown specialty chain Trader Joe’s with 190-plus locations, representing more than a third of all its U.S. locations, and Whole Foods Market, which has just under 100 stores (18 percent of its overall U.S. stores).
Then there’s relative newcomer Sprouts Farmers Market, which operates 126 stores, twice as many as in other states (with total stores are 370 and counting in 2022).
The Golden State also boasts a rising quantity of large ethnic supermarket chains.
Northgate Market (over 30 locations mostly in southern L.A. and Orange counties) and Vallarta Supermarkets (50 locations primarily in L.A. County) serve the Hispanic market, while 99 Ranch Market specializes in Asian products and ingredients and is the largest such chain in the United States with over 50 stores, mostly in California.
Jons Fresh Marketplace, with 17 units in Los Angeles County, carries products tailored to each of its neighborhood locations, including Armenian, Middle Eastern, Asian, and Latin American groceries, as well as produce departments with an international selection.
“With a population equal to several states combined and the presence of multiple cultures, the state can support a variety of stores to feed the diversity,” notes Ron Fong, president and CEO of the California Grocers Association, based in Sacramento, CA.
“Supermarkets in California are competitive,” he adds, “but because there are so many different types of customers in the state, there’s plenty of opportunity for everyone.”
And this being spacious California, there’s also room for the big box stores, including Walmart and Target, as well as warehouse stores Costco and to a far lesser extent, Sam’s Club.
All of these stores have the advantage of a full spectrum of available merchandise, plus groceries and an expanding array of produce.
Between Walmart and Target, there are over 600 stores in the state; for Costco, there are 132 or 22 percent of its membership-based warehouses; and Sam’s Club has little more than two dozen club stores.
Walmart has cited competition and the desire to concentrate more fully on online ordering as among the reasons for closing numerous Sam’s locations throughout the country.
Amidst all this competition is a gem called Gelson’s Markets, BB #:113119 the focus of this retail snapshot.
This an excerpt from the California Supplement to the May/June 2022 issue of Produce Blueprints Magazine. Click here to read the whole supplement.
