Supermarkets remain the dominant channel for milk, responsible for more than three-quarters of sales, according to a recent article in Supermarket News, but alternative formats are stealing share from the more traditional channels.
From June 2002 to June 2003, supermarkets saw their share of sales drop from 78.6% to 77.4%, according to Information Resources Inc., Chicago. The same data showed mass merchants grew their share, from 12.6% to 13% of sales; convenience stores inched up from 2.5% to 2.6% of sales; and club stores moved up from 3.2% to 4% of sales. The magazine said the main factors driving the shift include convenience, price, and healthy margins for retailers.