The saying suggests that less is more. Although consumers’ desires for customized food and beverage options have contributed to SKU proliferation, American shoppers also are purchasing products based on value. To attain that value, consumers are frequenting various retail channels such as dollar store chains and limited-assortment retailers.
“Limited-assortment stores, dollar stores and supercenters are the fastest-growing segments of the brick-and-mortar retail food industry,” says Jon Hauptman, senior director of retail for Long Grove, Ill.-based Inmar Willard Bishop Analytics. “They’re primarily driving competitive advantage by providing exceptional value, but there’s more to it than that. Limited-assortment stores such as Aldi have been significantly upgrading the shopping experience with brighter stores and new, interesting products not found elsewhere. Additionally, dollar stores have been continuing to expand their assortments of food as well as their store counts across the country.”