Untitled - Food Marketing Institute

Access to Healthier Foods: Opportunities and
Challenges for Food Retailers in Underserved Areas
Introduction
Since the first supermarket opened its doors in 1930, the business of food retailing
has remained consistent: sell a wide variety of foods at a reasonable cost. Over the
years, food retailers have adjusted and adapted their formats, services and
products to accommodate the needs of their customers. Like all businesses, food
retailing is a for-profit enterprise, but unlike other businesses having larger profit
margins, the typical grocery store’s profit after taxes is approximately 1.3% with
the average store taking in approximately $6,000 per week in profit (based on
median annual sales of $466,000). Although supermarkets provide an essential
service to the communities they serve, they are businesses which must produce
profit to stay viable. The lack of a supermarket in a community can have many
consequences affecting the economy, health and social structure of the surrounding
areas. However, encouraging supermarket development where it is needed is a
multi-dimensional process requiring community support, financial investment and
creative partnerships.
2345 Crystal Drive ● Suite 800 ● Arlington, Virginia ● 22202
http://www.fmi.org
Food Marketing Institute (FMI) conducts programs in public affairs, food safety, research, education and industry
relations on behalf of its 1,500 member companies — food retailers and wholesalers — in the United States and
around the world. FMI’s U.S. members operate approximately 26,000 retail food stores and 14,000 pharmacies.
Their combined annual sales volume of $680 billion represents three-quarters of all retail food store sales in the
United States. FMI’s retail membership is composed of large multi-store chains, regional firms and independent
supermarkets. Its international membership includes 200 companies from more than 50 countries. FMI’s associate
members include the supplier partners of its retail and wholesale members.
Access to Healthier Foods: Opportunities and Challenges for Food Retailers in Underserved Areas
1
July, 2011