1. Calculate Walmart's market share in the grocery industry. How much sales revenue is each share point worth in this industry?

2. How have traditional supermarkets responded to the threat posed by Walmart's entry into this industry? Suggest strategies to help stem the loss of market share to superstores such as Walmart and Target.

Consumers will always need to purchase groceries, making this a $700 billion industry. But where they shop for groceries has changed with the entry of big-box discounters such as Walmart and Target. Almost 25 years ago, executives at Walmart made a strategic decision to expand into the grocery industry. Now more than half of Walmart's sales are from this category. Walmart has more than 3,000 Supercenters with full grocery stores and another 200 smaller "Neighborhood Markets" that offer primarily groceries. Walmart captures more than $145 billion of the $700 billion U.S. consumers spend on groceries annually. Walmart's Sam's Club grabs another $30 billion of annual grocery sales. As a result, the share of grocery sales captured by traditional supermarkets fell to 51 percent in 2011, a 23 percent drop from 2000.