Account-Specific Spotlight: Phoenix

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Phoenix grocers are big on free samples, but light on frequent-shopper deals. Only 11 percent of stores here have frequent-shopper programs. Fully 94 percent do in-store demos, the highest in the country. Ninety-five percent offer in-store coupons, and 83 percent do double couponing.

Phoenix supermarkets’ sales volume is comparable to the national average, even though stores here are 16 percent bigger than the national average. Department services are strong, with floral centers in 77 percent of stores. Also big are in-store bakeries (73%), prepared food (75%), and full-service banks (59%). Nearly one-third of supermarkets house restaurants.

Fry’s and Safeway dominate the market with a 20 share apiece; Basha’s and Smith’s follow a close second, each with a 17 share. Each chain has added 30 stores since 1993. Wholesaler Fleming has dropped to a 13 share with 87 stores, down from 142 in 1993. Phoenix’s 3.5 million residents account for 2 percent of the total U.S.


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