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Proprietary Data Insights Top Grocery Store Stock Searches This Month
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We really can’t wait to reveal America’s favorite grocery store. Because it blew our mind. So, let’s play a little process of elimination game, adding useful nuggets along the way. America’s favorite grocery store does not show up among the top five most searched grocery store stocks in Trackstar, our proprietary sentiment indicator. However, Kroger (KR) does. It’s #1, thanks, in part, to a 112% surge in interest over the last week. Why the surge in interest? Because Kroger beat Q3 earnings estimates and raised full-year guidance last week. And the company’s CEO provided the quote of the month when he said he doesn’t think Kroger’s proposed merger with Albertsons (ACI) will hurt competition: It’s easy for customers to make a right turn or a left turn. We love that the dude had the balls to say this to Congress. Also, he’s right. In a world of seemingly decreasing competition, for grocery shopping you have abundant choice. Regional chains like the ones that show up after Kroger in Trackstar, plus countless others such as Publix, Wegmans, Save-A-Lot, and so on and so forth. While a Kroger-Albertsons tie up will create one massive national chain with numerous brands (Ralphs, Safeway, Vons, Pavilions, and so on), the duo can simply divest stores in cities with less choice. However, these places might be hard to come by. Turn left or right in most places and you can buy your groceries at a regional powerhouse or Walmart (WMT), Target (TGT) or Costco (COST). Not to mention Trader Joes, Aldi, and Whole Foods (AMZN). We’re living in the golden age of grocery stores. And, unbelievably, we still haven’t mentioned America’s favorite. |
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Grocery Stores |
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You’ll Never Guess America’s Favorite Grocery Store |
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Key Takeaways:
Source: YouGov This isn’t a joke. According to YouGov, America’s favorite grocery store is 7-Eleven.
So, yeah, always a convenience store, we can now call 7-Eleven a grocery store, too? What’s language anyway? Ultimately, we all agree to use words to classify things. If somebody asks what’s your favorite grocery store and enough people say 7-Eleven, it becomes – at least socioculturally – a grocery store. They do sell groceries. And Slurpies, big gulps, lottery tickets, and cigarettes. A stone’s throw away from The Juice’s Los Angeles outpost, you could probably also score drugs in front of the two 7-Elevens we can walk to. Here in urban LA, 7-Elevens have a seedy reputation. There’s almost always some crazy s**t going down outside of most of them. However, we know this isn’t the case everywhere, particularly in suburban locations. We also know that 7-Eleven’s Japanese parent company, Seven and I Holdings (SVNDY), has been spending big to upgrade inventory and the customer experience. If the dollar stores and discount retailers can do it, why not 7-Eleven? According to a recent survey, young people, particularly Gen Z, have favorable views on convenience stores. So much so that 40% of people report shopping at convenience stores such as 7-Eleven and Circle-K for grocery staples. Among all adults, the usual suspects show up after 7-Eleven. Source: YouGov
The Bottom Line: It doesn’t take a rocket scientist or Wall Street analyst (as if the two have anything in common!) to conclude we might see more consolidation in the broad grocery store space. If the Feds approve the Kroger-Albertsons marriage, don’t be shocked to see 7-Eleven take out a dollar store or a big discount retailer (we’re looking at you, Walmart and Target) make a play for 7-Eleven. Retailers want young consumers. Certainly, they have taken note of this convenience store acting like a grocery store trend among Gen Z and millennials. And we have to think sooner or later, somebody’s going to act on this interesting, if not surprising information. |
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