According to the "Future of Food Retailing" report released on Thursday by Inmar Willard Bishop Analytics, Fresh Format stores are on the way up while traditional supermarkets are experiencing decline.

Traditional Supermarkets lost two share points and 5.9 percent of sales in 2016, pushing the Traditional Grocery channel to decreased sales of 4.1 percent. Traditional Supermarkets ended the year with 35.6 percent dollar share, or $440 billion in sales. 

Fresh Format stores, however, continued to experience substantial sales growth with an increase of 3.8 percent to $27.9 billion. The number of Fresh Format stores — like Sprouts Farmers Market and Earth Fare Healthy Supermarket — increased 7.5 percent, reaching more than 1,5000 locations. Growth in this category was also driven by Traditional Supermarket banners converting to Fresh Format. Banners making the transition included Beverly's, Lowes Foods, Lunds and Mariano's.

Established Fresh Format banners continue to add stores and increase shopper engagement using digital technologies such as mobile apps, digital coupons and personalized offers.