Sunbury-based Weis Markets, which grabbed 17.5 percent of Lancaster County grocery sales last year, remains the preferred supermarket, though Giant Food Stores, Redner's Warehouse Markets and Wal-Mart are lurking, according to a survey sponsored by Food Trade News, a Broomall trade publication.

The study estimated the sales of groceries, health and beauty products, drugs, tobacco and other merchandise commonly found in county grocery stores between April 1, 2002, and March 31, 2003.

Weis Markets produced annual sales of $189.5 million to outpace Giant Food Stores at $151.4 million. Despite opening only one new store in the county since 1998, Weis, which has 13 stores here, increased its market share by almost 2 percent.

Giant, a Carlisle-based Ahold USA company, pulled in a 14 percent market share from just seven stores. Giant has increased sales by more than $25 million and picked up an additional 1.5 percent of the market since 1998, despite closing a store.

Shurfine's five independent stores -- Yoder's Country Market, Oregon Dairy Farm Market, John Herr's Village Market and two Darrenkamp's markets -- raked in $88.7 million to capture 8.2 percent of the market.

Redner's Warehouse Markets' four stores grabbed $68.6 million in sales and 6.3 percent of the market. Redner's picked up an additional 1.2 percent of the market since 1998.

Jeff Metzger, publisher of Food Trade News, said the county's grocery market has been resistant to outside chains, such as Acme Markets and Pathmark, which have failed in central Pennsylvania.

Metzger said Shady Maple Farm Market, which took in $33 million from its lone East Earl store, exemplifies the Lancaster grocery market.

"Central Pennsylvania is one of the last bastions of the independent supermarket," Metzger said. "Shady Maple is a perfect example: Customers are very loyal and continue to come back time and time again."

However, Metzger said, Wal-Mart will continue to challenge independent grocers. Wal-Mart, with stores in Ephrata and at 2034 E. Lincoln Highway, ranked fifth in the grocery survey, with sales of $64.1 million and nearly 6 percent of the market share.

With the opening of its Ephrata store in 1999, Wal-Mart was the biggest gainer in sales and market share over the past five years, according to the survey. Wal-Mart jumped four places since 1998, capturing an additional 3.5 percent of the market and increasing sales by $36 million.

Metzger said grocery stores of all sizes are under pressure from retailers that offer products and services similar to those of supermarkets. Known as "alternate channels" in the grocery industry, drugstores and convenience stores in the county now account for $3 of every $10 spent on products included in the survey -- up from $2.78 in 1998.

With combined sales of $113 million, No. 6 Turkey Hill and No. 7 CVS grabbed more than 10 percent of grocery sales. Though it dropped one survey spot since 1998, Turkey Hill increased sales in its 57 stores by about $9 million.

CVS added three stores and garnered an extra $15 million and 1.2 percent of the market since 1998.

No. 8 Stauffer's of Kissel Hill's market share barely increased, but it increased its annual sales by $6.3 million since 1998.

No. 9 Kmart, which recently emerged from bankruptcy reorganization, generated $43.4 million and a 4 percent market share from its six stores.

Metzger said grocers and nontraditional retailers have borrowed each other's market strategies to attract business.

"There is clearly a case of 'channel-blurring' in the industry," Metzger said. "Supermarkets and their competitors are encroaching on each other's strengths."

For example, drugstores and convenience stores are offering multiple departments, including produce and meat. On the other hand, many supermarkets have strengthened marketing efforts to spur sales of deli sandwiches, prepared foods and tobacco products -- key components of convenience-store sales.

Other relative newcomers vying for a share of the county's grocery business are two club stores, Costco and BJ's Wholesale Club, which ranked 10th and 11th respectively in the survey. Costco and BJ's combined for sales of $36.4 million and accounted for 3.3 percent of the market.

The survey relied mostly on individual store sales reports, but for retailers that did not release sales figures, the survey relied on estimates from a variety of sources, such as former and present employees, vendors familiar with specific accounts and outside consultants.

Metzger said overall supermarket sales were sluggish due to a stagnant economy and a reduction in meat costs that prevented a significant rise in food prices.

Though Wal-Mart does not dominate the county's grocery market, it has made progress in neighboring counties, according to the survey. Wal-Mart's 13 stores in Adams, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, Perry and York counties generated more than $322 million in sales to rank third in the central Pennsylvania grocery market. Though it trails No. 1 Giant ($990 million, 25.5 percent of the market) and Weis ($563.3 million, 14.5 percent) in the region, look for Wal-Mart's share to continue to grow, Metzger said.

"Wal-Mart is not going away," Metzger said. "It has plenty of sites already picked out for supercenter stores in central PA," Metzger said.

While the fate of the proposed Wal-Mart in Manor Township remains uncertain, Metzger said the company has plans for more than a dozen stores in the region, including sites in Morgantown, Oxford, Mechanicsburg and Harrisburg.

Look for larger Turkey Hill, Sheetz and Wawa convenience stores to continue eating away at sales as well, Metzger said.

Turkey Hill's 57 stores in the county produced more than $61 million in annual sales, and its 106 stores in central Pennsylvania ranked seventh in grocery sales with $112 million and a 2.9 percent market share.

Wawa and Sheetz also are market forces. Despite operating only 38 stores, Sheetz ranked 10th in central Pennsylvania with $77.8 million in sales and a 2 percent market share.

Though it is a newcomer to Lancaster, Wawa ranked fourth among all grocery markets in the Philadelphia region.

"It is amazing that Wawa came in right behind Acme, ShopRite and Genuardi's," Metzger said. "You'll see (Wawa's) and Sheetz's share continue to grow in Lancaster. I'd say they are probably the two best convenience stores in the country."