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Value-Driven Shopping
Value retailers—stores that combine low prices with broad variety and a quality shopping experience—have more than doubled their share of US grocery sales, from 9 percent in 1995 to 23 percent in 2002. These stores' standards for convenience, the in-store experience, and assortments match or outclass those of many traditional competitors, even on fresh foods. And consumers are no longer willing to pay the traditional grocers’ premium.
The take-away: This shift to value won’t end when the economy picks up. Customers say they would shop at discount stores more often if the stores were closer, so these retailers are rapidly expanding thanks to the strength of the operating economics.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
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