1 Defining the industry is one of the most critical aspects of industry analysis. The US Census Bureau compiles industry data and combines it based upon the type of retail firm or retail format - not the products the retailers sell. Consequently, the grocery/supermarket data does not include the food and retailed sales of Walmart, Sam's Club, Target, Costco, BJ's Wholesale Club or Amazon.com. Use the data in Tables 1-4 to add those firms' food and other grocery items to the total sales for the grocery/supermarket industry. Using your new sales figures as the food retailing industry, what was the 4-firm concentration ratio in 2016 for the food retailing industry including the six firms listed above? HINT: Sam's Club belongs to Walmart. Table 4 shows the percentage of total sales for each retailer that was contributed by sales of grocery items.

NOTE: Table 4 does not show 2012, 2013 figures due to the lack of available data for some retailers for those years.

A. about 35%

B. about 37%

C. about 43%

D.about 46%

2. Kroger was the second largest food retailer in the US in 2011 and in 2016.

True or False

Table 4: US Grocery Sales Non-Grocer Retailers Amazon.com (US Only) BJ's Wholesale Club CostCo Sam's Club Target US Walmart US 2011 NA 66% 56% 55% 44% 55% 2014 NA 75% 56% 57% 46% 56% 2015 12% 75% 56% 59% 47% 56% 2016 12% 5910 57% 59% 44% 56% Source: Company 10K reports; Vault.com Company Profiles: BJ's Wholesale Club; Cowen & Co estimates. Table 4: US Grocery Sales Non-Grocer Retailers Amazon.com (US Only) BJ's Wholesale Club CostCo Sam's Club Target US Walmart US 2011 NA 66% 56% 55% 44% 55% 2014 NA 75% 56% 57% 46% 56% 2015 12% 75% 56% 59% 47% 56% 2016 12% 5910 57% 59% 44% 56% Source: Company 10K reports; Vault.com Company Profiles: BJ's Wholesale Club; Cowen & Co estimates