Attorneys
Practices
Brad Sandler Speaks to The Deal on Supermarket Industry
Brad Sandler recently spoke to The Deal regarding emerging competitive pressures in the supermarket industry. Retail giant Wal-Mart’s announcement that it plans to close 269 of its stores across the globe has shown that even the largest industry players are being impacted by the competitive, low-margin nature of the business. With a number of household grocery chains declaring bankruptcy in the past year, such as Fresh & Easy, Haggen Holdings, Great Atlantic & Pacific Tea Company, issues involving underperforming outlets and fast expansion are becoming increasingly apparent. According to Mr. Sandler, competition could also increase due to several online grocery delivery companies already launching their models on a regional basis.
“We’re seeing a trend toward online grocery services such as Instacart, AmazonFresh, Fresh Direct and Peapod.” Brad told The Deal. “The technology shift is making it easier for consumers to buy groceries.”
Additionally, larger supermarket chains are already adjusting to the shift in technology in an effort to better serve customers, with some even developing their own technology to improve consumer experiences. Many experts believe that embracing new technology will be key in order for supermarkets to stay alive and adapt in a changing landscape.
“Supermarkets and grocers will need to adopt a high-tech focus,” said Brad. “Anytime there’s a shift in trends or change in technology and a company doesn’t adapt to the changes or changes too late, they will need restructuring work.”