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Supermarkets & Grocery Stores Industry Report 2018 Sources:Washington, D.C. Mexico City Monterrey
US Supermarkets & Grocery Stores Industry Report
July 2018
Supermarkets & Grocery Stores Industry Report 2018 Sources:
US Grocery Stores & Supermarkets Industry Overview
• The supermarkets and grocery stores industry represents the largest food retail channel in the United States. Establishments
in this industry offer a wide array of food products, including fresh and prepared meats, poultry and seafood, canned and
frozen foods, fresh fruits and vegetables and various dairy product
• Stores are ranked according to size (e.g. megamarkets, hypermarkets, supermarkets, clubs, warehouses, convenience stores,
and other)
• In 2017, total sales of the industry reached US$1,116 billion, with a CAGR (2012-2017) of 2.7%
• Number of outlets (as of 2017) of 385,100 units, showing a CAGR (2012-2017) of 1.4%
• Selling space (as of 2017) of 228.5 million m², showing a CAGR (2012-2017) of 1.2%
• By 2022, total sales of the industry are expected to reach US$1,142 billion with a CAGR (2017-2022) of 0.5%
• Number of outlets will increase to 403,500 units, a total growth (2017 / 2022) of 4.8%
• From 2017 to 2022, grocery discounters are expected to grow the most in sales and outlets, with 9.1% and 7.5% respectively
• Key players in the industry include, Wal-Mart Inc with a market share (retail value) of 25.6%, Kroger Co with a 9%, Albertsons
Cos Inc with a 5% and Ahold Delhaize with a 3.7%. Other competitors include, Publix Super Markets Inc, HE Butt Grocery Co,
Meijer Inc, Wakefern Food Corp, among others
• By number of outlets in 2017, 7-Eleven led with 9,242 units, Circle K (Couche-Tard) with 5,758 and Walmart Supercenter with
3,560
• By selling space in 2017, Walmart Supercenter led with 58,735 million m², Kroger with 5,397 million m² and Publix with 5,117
million m²
• Industry is experimenting intensifying retail competition from alternative options, as consumer migration online has grocers
racing to increase their online presence and moving toward blended models (e.g. click and collect); meanwhile online giants
are, venturing to traditional physical stores (e.g. Amazon buying Whole Foods)
• Discount stores (e.g. Lidl and Aldi) account for 27% of the grocery stores recently built or in progress, being the main threat to
traditional grocers forcing them to drop prices
Sales by Category
IBISWorld, Euromonitor, DB Hoovers
Industry Sales
Supermarkets47%
Hypermarkets28%
Forecourt Retailers
10%
Food/Drink/Tobacco Specialists
7%
Independent Small Grocers
3%
Others5%
1,116
1,120
1,124
1,129
1,135
1,142
2017 2018 2019 2020 2021 2022
Historical Forecast
US$ Billion
Supermarkets & Grocery Stores Industry Report 2018 Sources:
Top 3 US Players by Market Share
Other Representative US Companies by Market Share
Companies’ reports, Euromonitor
Company Share: 25.6%
• 4,672 Units in the US
• 2017 Annual sales in the US of US$308 billion,
• Sales growth CAGR of 3.28% (2014-2017)
Company Share: 9%
• 2,782 Units in the US
• 2017 Annual sales in the US of US$123 billion
• Sales growth CAGR of 4.19% (2014-2017)
• Company banners: Kroger, Ralphs, Fry’s Food
Stores, King Scoopers, Food 4 Less, Smith’s, among
others
Company Share: 5%
• 2,318 Units in the US
• 2017 Annual sales in the US of US$60 billion
• Sales growth CAGR of 1.33% (2014-2017)
• Company banners: Albertsons, Safeway, Vons,
Amigos, Jewel Osco, Acme, United, Tom Thumb,
among others.
3.7%
1.4%
3.1% 1.9% 1.5%
1.4%
1.3%
1.3%
1.2% 1% 0.9%0.9%
Supermarkets & Grocery Stores Industry Report 2018 Sources:
Price
2018-07-20 2014 2015 2016 2017EV /
EBITDA
EV /
Revenue
Walmart Inc. USA $88.06 $505,491 6.5% $259,851 $301,347 8.5x 7.8x 7.8x 8.6x(Invalid End Date)9.2x 0.6x
Costco Wholesale Corporation USA $218.69 $139,465 4.3% $95,905 $95,657 12.5x 13.9x 14.0x 14.0x 16.1x 0.7x
Wal-Mart de México, S.A.B. de C.V. MEX $2.92 $32,207 9.8% $51,074 $50,046 13.8x 14.7x 15.2x 14.0x 16.7x 1.6x
The Kroger Co. USA $28.14 $123,907 4.3% $22,418 $35,999 7.6x 8.9x 7.8x 6.6x 6.7x 0.3x
Aeon Co., Ltd. JPN $19.93 $77,482 5.6% $16,736 $35,457 6.6x 8.2x 7.8x 7.8x 8.4x 0.5x
Koninklijke Ahold Delhaize N.V. NLD $25.18 $76,325 6.5% $29,647 $32,531 5.4x 7.4x 8.7x 7.6x 6.8x 0.4x
Woolworths Group Limited AUS $22.91 $44,339 6.3% $30,013 $31,108 10.1x 8.1x 8.8x 10.5x 11.8x 0.7x
Carrefour SA FRA $15.82 $96,651 4.5% $12,299 $25,584 7.6x 8.6x 7.6x 7.4x 6.0x 0.3x
Dairy Farm Int. Holdings Limited HKG $9.28 $11,289 5.1% $12,552 $13,220 16.6x 13.7x 13.0x 15.2x NR 1.2x
J Sainsbury plc GBR $4.27 $39,472 4.1% $9,394 $11,893 5.0x 5.1x 5.4x 6.6x 7.7x 0.3x
Sun Art Retail Group Limited HKG $1.28 $15,725 7.1% $12,178 $10,761 10.8x 7.3x 6.2x 7.9x 9.7x 0.7x
Wm Morrison Supermarkets PLC GBR $3.35 $24,372 4.7% $7,877 $9,193 6.5x 10.7x 11.7x 9.2x 8.7x 0.4x
Shoprite Holdings Limited RSA $15.42 $11,761 7.2% $8,552 $8,659 11.3x 10.7x 10.4x 11.3x 11.0x 0.8x
Public Joint Stock Company Magnit RUS $67.74 $19,593 7.4% $6,903 $8,600 14.3x 10.6x 9.5x 10.2x 6.6x 0.5x
Companhia Brasileira de Distribuição BRA $20.51 $13,745 6.3% $5,464 $7,250 7.6x 5.5x 7.1x 10.5x 9.9x 0.6x
NR: Not Relevant Mean 9.7x 0.6x
Median 8.9x 0.6x
Average EV / EBITDA 2018-07-20
Company CountryRevenue
US$M
EBITDA
Margin
Market Cap.
US$M
Enterprise
Value
Price
2018-07-20 2014 2015 2016 2017EV /
EBITDA
EV /
Revenue
Walmart Inc. AR $88.06 $505,491 6.5% $259,851 $301,347 8.5x 7.8x 7.8x 8.6x 9.2x 0.6x
Costco Wholesale Corporation WA $218.69 $139,465 4.3% $95,905 $95,657 12.5x 13.9x 14.0x 14.0x 16.1x 0.7x
The Kroger Co. OH $28.14 $123,907 4.3% $22,418 $35,999 7.6x 8.9x 7.8x 6.6x 6.7x 0.3x
BJ's Wholesale Club Holdings, Inc. MA $25.91 $12,869 3.8% $3,418 $6,075 0.0x 0.0x 0.0x 0.0x 12.4x 0.5x
Casey's General Stores, Inc. IA $109.67 $7,472 6.5% $4,013 $5,306 9.3x 10.1x 9.7x 9.9x 10.9x 0.7x
Sprouts Farmers Market, Inc. AZ $22.15 $4,821 7.0% $2,920 $3,402 24.2x 17.2x 12.1x 11.2x 10.1x 0.7x
SUPERVALU INC. MN $20.61 $14,157 3.1% $796 $2,664 6.5x 6.3x 4.9x 4.6x 5.9x 0.2x
PriceSmart, Inc. CA $80.40 $3,122 5.9% $2,444 $2,411(Invalid Identifier) 17.1x 14.5x 13.6x 13.9x 13.0x 0.8x
Ingles Markets, Incorporated NC $29.55 $4,072 5.9% $599 $1,481 7.0x 8.0x 7.1x 6.8x 6.1x 0.4x
Weis Markets, Inc. PA $52.63 $3,491 4.8% $1,416 $1,322 6.8x 7.1x 7.3x 7.8x 8.0x 0.4x
Smart & Final Stores, Inc. CA $5.55 $4,620 3.4% $413 $1,045 10.4x 10.8x 10.4x 9.9x 6.6x 0.2x
Village Super Market, Inc. NJ $29.69 $1,609 3.8% $427 $396 5.8x 6.1x 5.7x 5.0x 6.5x 0.2x
Natural Grocers by Vitamin Cottage,
Inc.CO $14.65 $812 5.2% $328 $377 16.9x 12.7x 7.5x 5.6x 8.9x 0.5x
iFresh Inc. NY $4.17 $137 0.2% $60 $76 0.0x 0.0x 0.0x 57.9x NR 0.6x
NR: Not Relevant Mean 9.3x 0.5x
Median 8.9x 0.5x
Average EV / EBITDA 2018-07-20Enterprise
ValueCompany State
Revenue
US$M
EBITDA
Margin
Market Cap.
US$M
Comparable Public Companies – USA
The following section presents financial information of publicly traded companies in the food retail industry in the world and in the US
Supermarkets & Grocery Stores Industry – Current Market Situation
Capital IQ
Comparable Public Companies – Global
Supermarkets & Grocery Stores Industry Report 2018 Sources:
Supermarkets & Grocery Stores Industry – US Transactions
Capital IQ
May-18 BJ's Wholesale Club in Fort Myers, Florida FL A wholesale club in Florida Cole Credit Property Trust V, Inc. $26 - -
Mar-18 Fiesta Mart, L.L.C. TX Hispanic supermarkets Bodega Latina Corporation $265 - -
Mar-18 21 Farm Fresh Stores of SUPERVALU Inc. USA Grocery storesThe Kroger Co.; Harris Teeter, Inc.; Food
Lion, LLC$43 - -
Oct-17 Honey Farms, Inc. MA Convenience stores Global Partners LP $36 - -
Oct-17 Liquor Stores USA South Inc. KY Liquor stores Blue Equity, LLC $29 - -
Jun-17 Whole Foods Market, Inc. TX Natural and organic foods supermarket Amazon.com, Inc. $14,621 10.3x 0.9x
Aug-16 Delek US' Retail Assets USA Food retail fleets Copec Inc. $529 - -
May-16 Joe Caputo & Sons, Inc. IL Grocery stores Piggly Wiggly Midwest, LLC $32 - -
Apr-16Stevenson Ranch Plaza in Los Angeles,
CaliforniaCA A grocery store InvenTrust Properties Corp. $73 - -
Mar-16 The Fresh Market, Inc. NC Specialty grocery retailerApollo Global Management, LLC; Apollo
Management VIII, L.P.$1,391 7.0x 0.7x
Nov-15 Roundy's, Inc. WI Retail grocery stores The Kroger Co. $835 7.0x 0.2x
Oct-15 Haggen, Inc., Eight California Stores CA Food retail stores Gelson's Markets, Inc. $36 - -
Sep-15The Great Atlantic & Pacific Tea Company, Inc.,
12 A&P and Pathmark StoresCA Supermarkets Wakefern Food Corp. $40 - -
Jul-15 25 Stores in New York NY SupermarketsThe Stop & Shop Supermarket Company
LLC$146 - -
Jul-15 Susser Holdings Corporation TX Convenience stores Sunoco LP $1,924 - -
Jun-15 One Stop Inc. WV Chain of convenience stores Domino's Pizza Group plc $45 - -
Jun-1577 Convenience Stores & Retail Motor Fuel
StationsUSA Convenience stores GTY-Pacific Leasing, LLC $215 - -
Feb-15 VPS Convenience Store Group, LLC NC Chain of convenience stores GPM Petroleum LP $60 - -
Dec-14 The Pantry, Inc. NC Convenience storesLGT Capital Partners AG; Crown Co-
investment Opportunities plc; entre otros$1,808 7.8x 0.3x
Dec-14 Convenience stores and other assets USA Convenience stores GPM Petroleum LP $43 - -
Aug-14 Nice N Easy Grocery Shoppes, Inc. NY A chain of grocery stores
Lehigh Gas Partners LP
(nka:CrossAmerica Partners LP); CST
Brands, Inc.
$65 - -
Mar-14 Safeway Inc. CA Food and drug retailer AB Acquisition LLC $12,391 4.8x 0.2x
Apr-14 Susser Holdings Corporation TX Convenience stores Energy Transfer Partners, L.P. $2,534 16.0x 0.4x
Feb-14 Mi Pueblo San Jose, Inc. (nka:Mi Pueblo LLC) CA Network of supermarketsVictory Park Capital Advisors, LLC; Cha
Cha Enterprises, LLC$46 - -
Jan-14Pro's Ranch Markets, Inc. (nka:CNG Ranch,
LLC)AZ Network of supermarkets
Cardenas Markets, Inc.; Northgate
González Markets, Inc.$55 - -
Dec-13 Arden Group, Inc. CA Operates supermarkets TPG Capital, L.P.; TPG Partners VI, L.P. $390 - -
Dec-13 Safeway, Inc., 11 Dominick's Stores IL Grocery stores Roundy's, Inc. $36 3.0x 0.1x
Nov-13 Girkin Development, LLC KY Convenience stores TravelCenters of America LLC $68 - -
Nov-13Portfolio of 7-Eleven Properties in Northeastern
OhioOH Convenience stores Inland Private Capital Corporation $29 - -
Sep-13Piggly Wiggly Carolina Company, Inc., 22
Piggly Wiggly StoresSC Food retail stores Bi-Lo Holdings, LLC $35 - -
NR: Not relevant Mean 8.0x 0.4x
Median 7.0x 0.3x
DescriptionDate Target State BuyerSize
(US$M)
EV/
EBITDA
EV/
Revenue
Supermarkets & Grocery Stores Industry Report 2018 Sources:
Regional Representative Transactions – Supermarkets & Grocery Stores Industry
Deal SummaryTarget Buyer
On March 06, 2014, AB Acquisition LLC, subsidiary of Albertsons Companies LLC
based in Idaho, announced the acquisition of Safeway Inc, a Californian food retail
company, for US$2,181 million, representing implied multiples of 4.8x (EBITDA) and
0.2x (revenue)
On June 16, 2017, Amazon.com, Inc., a company focused on e-commerce and cloud
computing services based in Washington, announced the acquisition of Whole Foods
Market, Inc., a Texan organic food supermarket chain, for US$14,620 million,
representing implied multiples of 10.3x (EBITDA) and 0.9x (revenue)
On April 29, 2018, “El Super”, Texan supermarkerts and subsidiary of Grupo
Comercial Chedraui, a Mexican supermarket chain, announced the acquisition of
Fiesta Mart, L.L.C., a Texan food retailer, for US$265 million to ACON Investments,
L.L.C., representing implied multiples of 6.6x (EBITDA) and 0.2x (revenue)
On April 28, 2014, Energy Transfer Partners, L.P., a Texan oil and gas
transportation company, announced the acquisition of Susser Holdings
Corporation, operates convenience stores in Texas, for US$2,533 million,
representing implied multiples of 16.0x(EBITDA) and 0.4x Revenue
On July 15, 2015, Sunoco LP, a Texan retailer of motor fuels, announced the
acquisition of Susser Holdings Corporation, operates convenience stores in Texas,
for US$1,923 million to Energy Transfer Partners
Capital IQ, Mergermarket
On December 20, 2013, TPG Capital L.P., a Texan venture capital firm, announced
the acquisition of Arden Group, Inc, a Californian food retailer doing business as
“Gelson's”, for US$389 million
On April 20, 2016, InvenTrust Properties Corp., a real estate company based in
Illinois, announced the acquisition of Stevenson Ranch Plaza., a Californian grocery
store, for US$72 million
Stevenson
Ranch Plaza
On January 31, 2014, Cardenas Markets, Inc., a chain of supermarkets in California
and Arizona, announced the acquisition of Pro's Ranch Markets, Inc., a network of
supermarkets in Arizona, for US$55 million
On February 20, 2014, Cha Cha Enterprises, LLC, a real estate company based in
California, announced the acquisition of Mi Pueblo San Jose, LLC, a network of
supermarkets in California, for US$46 million
Supermarkets & Grocery Stores Industry Report 2018 Sources:
#1 Representative Transaction – Supermarkets & Grocery Stores Industry
Amazon.com, Inc. announced the acquisition of Whole
Foods Market, Inc. for US$14,620 million
Buyer:
Target:
Company Value:
US$14,620 M
• On June 16, 2017, Amazon.com, Inc., a company focused on e-commerce and cloud
computing services, announced the acquisition of Whole Foods Market, Inc., an organic
supermarket chain based in Texas, for US$14,620 million, representing implied multiples
of 10.3x (EBITDA) and 0.9x (revenue)
• It is the largest acquisition to date made by Amazon and the most important merger in
food retail
• Whole Foods generates annual revenues of US$16,000 million and has establishments
in the United States, Canada and the United Kingdom
• The Whole Foods shares appreciated by 29% while Amazon shares appreciated by 3%
on the day of the announcement of the acquisition
AB Acquisition LLC, announced the acquisition of Safeway
Inc., for US$12,391 million
• On March 06, 2014, AB Acquisition LLC, subsidiary of Albertsons Companies LLC,
announced the acquisition of Safeway Inc, a Californian food retail company, for
US$2,181 million, representing implied multiples of 4.8x (EBITDA) and 0.2x (revenue)
• The merger will create a diversified network that includes 2,230 stores, 27 distribution
facilities and 19 manufacturing plants with over 250,000 employees across 34 states and
the District of Columbia
• Safeway Inc., by the time of the transaction, operated 1,335 stores in 20 states and
the D.C., 13 distribution centers and 20 manufacturing plants, and employs
approximately 138,000 employees.
Buyer:
Target:
#2 Representative Transaction – Supermarkets & Grocery Stores Industry
Amazon paid US$42 per share
in cash to Whole Foods
Multiple
EV/EBITDA:
10.3x
Company Value:
US$12,391 M
US Industry size equals to
US$800 billion
As result of the transaction, the
common stock of Safeway is no
longer listed for trading
Multiple
EV/Revenue:
0.2x
Multiple
EV/EBITDA:
4.8x
Multiple
EV/Revenue:
0.9x
The new company is
comprised in 3 regions and 14
retail division
Capital IQ, Safeway, NY Times
REPRESENTATIVE GLOBAL ENGAGEMENTS
Washington, D.C. Mexico City Monterrey
has sold
to
a subsidiary of
has sold
to
and
A division of Carrier Commercial Refrigeration, Inc.
has acquired
has sold the North
American
guarding business of
to
has sold
GE Power Systems
to
Acquisition
Advisory Services
GE Industrial Systems
has acquired
has sold
to
andhas acquired
a wholly owned
subsidiary of
Acquisition
Advisory Services
has sold
Triumph Air Repair &
Triumph Engines
businesses
to
Divestiture &
Brand Valuation
Advisory
Services
Shell Oil Products U.S.
has acquired
has sold
to
Daives Baird Pty Ltda sister company of
has sold the
to
Films Business of
a subsidiary of
has sold its
to
GRACE
Membranes Business
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to
Code Flower Inc.
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has acquired
from
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Planthas acquired
sold
to
sold
to
KPAC Holdings, Inc.A private investment group
has been acquired by
Private Investment
Fund
has been acquired by
has been acquired by
Acquisition
Advisory Services
Acquisition
Advisory Services
Strategic
Consulting
Services
Advice on Project
Financing
Acquisition
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REPRESENTATIVE MEXICAN ENGAGEMENTS
Washington, D.C. Mexico City Monterrey
to
Holding company of
merged its
beverage division
with
has merged with
a business of
has partnered with
a subsidiary of
has sold
to
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and
a business unit of
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to
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has acquired
KFC Costa Rica
from
sold
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sold
to
Grupo Galaz, S.A de C.V.
dealers of
has partnered with
workshop and store in
Mexico City from
Acquisition
Advisory
Services
Corporate
Finance
Advisory
Services
has formed a partnership in
the casting tools business
between
and
has acquired
has acquired
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has been acquired by
has acquired
has acquired
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has been acquired by
has been acquired by
merged its
beverage division
with
Acquisition
Advisory
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has carved out and sold
its concrete pumping
assets in Mexico
has formed a
partnership to market
and develop oil storage
and distribution in
Mexico with
Corporate
Finance
Advisory
Services
Corporate
Finance
Advisory
Services
acquired a 61% stake on
Acquisition
Advisory
Services
Corporate
Finance
Advisory
Services
Supermarkets & Grocery Stores Industry Report 2018 Sources:
Established presence in
Monterrey , Mexico
*
*
*
*
**
**
* Multiple engagements
*
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
* *
1999
Founded
2016 2017 2018
Mexico Contact Information
James A. Seale
President
Brett M. Carmel
Senior Managing Director
Felipe Bueno Viesca
Managing Director
Sergio Garcia del Bosque
Managing Director
Adan Sierra
Vice President
Carlos Hernandez
Vice President
Alejandro Montemayor
Associate
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Business Development
Andres Cardenas
Analyst
Armando Rios
Analyst
Miguel Leal
Junior Analyst
Diego Hernandez
Junior Analyst
Since 1999, Seale & Associates has been the trusted advisor to highly
respected public and private companies from around the world, with a
track record of success in a diverse range of industries. Seale is an elite
boutique global investment banking firm with extensive experience in
mergers and acquisitions (M&A), corporate finance advisory, and
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