THE RISE OF THE DISCOUNT SUPERMARKET
1979 : Trader Joe ’ s . For decades the brand has built a reputation of offering unique and high-end products at relatively low prices , achieving this by sticking almost entirely to private label products and valuing a breadth of items over a depth of brand name choices .
Across the Atlantic , Sainsbury ’ s is gaining a similar reputation , bridging the gap between budget prices and higher-end product choices . Both chains challenge the notion of what it means to be a discount store , a challenge that has resulted in a stronger percentage of the grocery market share compared to more standard chains . rivals like Aldi and Lidl and making an effort to understand what it is about them that keeps their customers coming back . “ Even if you believe the rise of the discounters is a temporary fad – which would be foolish – you must understand why families who drive Audis and BMWs have started to shop there ,” he notes .
For struggling grocery chains , the smartest money is on believing wholeheartedly that discount chains are here to stay , understanding what makes them so appealing , and finding those traits within themselves .
What Can Traditional Supermarkets Learn ? Does this compartmentalization of the grocery store industry mean that traditional supermarkets are going the way of the buffalo ? Not quite – but some will certainly have to change their strategies if they want to stay relevant and marketable to consumers for the long haul . In an open letter to incoming Tesco CEO Dave Lewis , Telegraph correspondent Graham Ruddick advised taking a long look at
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