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This was caused by increased market saturation and slowing growth rates. Between 1995 and 1996 the growth rates were the lowest they had been in the past twenty years. The main reason for this was the vast number of grocery stores that had been built in growth stage and the emergence of new grocery retail formats such as warehouse clubs and dollar stores. This increased competition forced firms to compete with each other for the same customers by lowering prices.
Enter WalMart. Walmart was not even in the grocery industry in the early 1990's but through excellent supply chain management and extremely low everyday prices have forced their way as one of the dominant players in the retail grocery industry...
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