No Limits on Small Grocers Growth
Among the hottest retailing segments in recent years has
been limited-assortment grocery stores. Chains such as Aldi, Grocery Outlet
and Save-A-Lot are opening stores at a fast pace as consumers are drawn to
savings well below traditional supermarkets and others selling food.
Today article reports that Aldi currently has 1,135 stores in
30+ states with plans to open up to 100 more this year. Save-A-Lot, a divison
of Supervalu, is looking to more than double its current store count to reach
roughly 2,400 locations over the next five years. West Coast-based Grocery
Outlet plans to add 15 stores in 2011 to the 150 it currently operates.
grocers have benefited from consumers’ willingness to substitute private label
for national brands.
Fifty-four percent of consumers in an August 2010 survey
told SymphonyIRI Group they were buying more store brands.
“Slightly more than one-third of consumers tell us they’re struggling
to afford groceries. That has increased 11 [percentage] points over the past
six months,” Susan Viamari, editor of SymphonyIRI’s Times & Trends,
told USA Today.
Another advantage to limited-assortment grocers is store
As Phil Lempert of supermarketguru.com told CBS News, “People
really have gotten very frustrated going into supermarkets. …These stores,
on average, are about a third or a quarter of the size. So you are able to
get in the store, find what you want faster, and get out.”
- Thrifty grocery shoppers head to smaller Save-A-Lot, Aldi – USA Today
- Discount Grocery Chains Growing Fast – CBS News
Discussion Questions: Will limited assortment grocers continue to grow at a faster pace than other food retailers as the economy improves? Are consumers who switched to these stores during the Great Recession going to continue to shop there or will they “trade up” to others selling groceries?