Discount stores

Discount food stores will grow faster than other retail channels

Discount and convenience stores in the United States are expected to grow faster than any other offline retail channel over the next five years, reflecting consumers’ increased focus on price and speed, even if that means a more limited assortment, according to an analysis of e-commerce. intelligence company Edge by Ascential.

Discount food stores, in particular, are expected to continue to gain market share, growing to 9.7% of food sales in 2024, up from 8.8% today and 7.4% in 2014.

Non-food discount stores, food discount stores, and convenience stores are all expected to experience annual growth rates above 5%, while all other offline retailers except membership club stores, according to the report. , are expected to experience annual growth rates of 3% or less. Convenience stores are expected to experience the strongest growth at 5.4%, with discount and non-food stores at 5.3% and 5%.

“What we see offline is similar to what we see online,” said David Gordon, research director at Edge by Ascential. “The emphasis is increasingly on low cost and convenience. You can see this through Amazon’s lens, and it will continue to play out online the same way. “

The growth can be seen in chains that plan to add stores in the United States in 2019. German discounter ALDI is expected to open 100 new stores. More than 900 Dollar General stores are expected to open this year, with hundreds of locations adding fresh produce and food. A net increase of 160 Dollar Tree and Family Dollar stores is expected.

The results are taken from Edge by Ascential’s Retail Market Monitor, which analyzes the current performance of individual industries and their expected growth by 2024.

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