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Lewis Food Town Executive Summary

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1.2 Executive Summary

Lewis Food Town, Inc., doing business as Food Town Grocery Stores, is a chain of grocery stores located in Greater Houston, founded in 1994 by Ross Lewis. He currently has over 40 years of Grocer experience. As of 2003 the chain had 14 stores in Greater Houston, and took a 2.57% market share in that market. Lewis Food Town was the sixth largest grocery store chain in Greater Houston is a company that hopes to continually grow and expand. As of 2011 the chain had 26 stores in the area. The stores are more densely located in the south part of the city. Lewis Food Town, feature national brand products, as well as a range of international items, which include fresh vegetables and fruits, herbs/spices baking products, frozen …show more content…

Some of the major opportunities include expansion to another city.

Food Town
Opportunities Threats
Can expand to towns outside the city since it is a cooperative model Competition from other local retailers in the area
Feature more exclusive products since it is cooperative The customer satisfaction levels going down can lead to the downfall of the entire chain
Can expand their private label offerings Stores are seen as cramped and the increasing rental rates can hamper growth and margins

3.0 Competition Analysis

3.1 Primary competition

Food Town’s primary competitor would be the big supermarkets like Wal-Mart, Kroger, Target, HEB. Food Town is a family owned business that opened in 1994 and is a local company. While large supermarkets like Wal Mart that opened in 1933 and today has more than 11088 international supermarket, HEB operates since 1905 with 350 stores in Texas and the north of Mexico, Target opened in 1902 and has more than 2640 supermarkets.

Food Town* Wal Mart**
Strengths Weaknesses Strengths Weaknesses
Low Prices No Convenience Service Match Price Poorly paid

Fresh Products Local and Privately Owned Nationwide and …show more content…

Food town is working hard to maintain the lowest prices, from the highest quality, so that customers can enjoy their products to the highest standards at low cost.

4.2 Target Market Segmentation

Food Town’s vision is to expand the supermarket concept by opening store and becoming the best low price and high standard supermarket in town. To achieve the vision of this organization; the management team will successfully execute the following strategy: strategically expand the customer base, differentiate itself from other groceries stores by offering unique products and services, committed to excellence in customer service, and strive to improve high efficiency levels of operations. The way Food Town attracts consumers is by adverting his lower

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