Number and Sales of Food and Beverage Retailers

Excerpts from the report: The number of food stores (establishments) decreased 17 percent between 1954 and 1963, according to the Census of Business. During this time, total sales of these stores increased by 44 percent. Part of the sales increase was due to price increases; retail prices of food for use at home increased 7 percent. Also, the proportion of sales of nonfood items has increased relative to food sales. Sales of alcoholic beverages and other nonfood items by food stores increased from 14.9 percent of total sales in 1954 to 22.5 percent in 1963, based on annual surveys conducted by Food Field Reporter. About three-fourths of all establishments classified as food stores are grocery stores. Remaining food stores have decreased in number faster than have the grocery stores, except for the retail bakeries. Retail bakeries was the only specialty food store group to show an increase in sales over the 1954-63 period, but its sales were up only half as much as sales by grocery stores. As a result, part of the large increase in sales by grocery stores was a substitution for food sales by other food stores. The number of eating places increased 15 percent between 1954 and 1963 and their sales rose 59 percent. These strong uptrends are consistent with the tendency for away-from-home eating to increase at a more rapid pace than food purchased for home use from food stores. Also, prices have risen faster. Food away from home rose in price by 27 percent during the 9-year period. Among eating places, caterers and limited-line places of refreshment increased in number and size more rapidly than did restaurants, lunchrooms, and cafeterias.