Food discount stores will grow faster than other retail channels
Food discount stores, in particular, are projected to continue gaining overall share, increasing to 9.7% of food sales in 2024.
Discount and convenience stores in the U.S. are projected to grow faster than all other offline retail channels over the next five years, reflecting consumers' increased focus on price and speed, even if it means more limited assortment, according to an analysis from e-commerce insights company Edge by Ascential.
Food discount stores, in particular, are projected to continue gaining overall share, increasing to 9.7% of food sales in 2024, from 8.8% today and 7.4% in 2014.
According to the report, non-food discount, food discount and convenience stores are all projected for annual growth rates above 5%, whereas all other offline retailers, aside from membership club stores, are projected at annual growth rates of 3% or below. Convenience stores are projected for the highest growth at 5.4%, with discount and non-food discount stores projected at 5.3% and 5%.
"What we're seeing offline is similar to what we're seeing online," said David Gordon, research director at Edge by Ascential. "There's an increasing emphasis on low cost and convenience. You can see it through the lens of Amazon, and it will continue to play out online in similar ways."
The growth can be manifested in the chains that are planning to add U.S. stores in 2019. German-owned discounter ALDI is expected to open 100 new locations. More than 900 Dollar General stores are expected to open this year, with hundreds of locations adding produce and fresh foods. There is expected to be a net increase of 160 Dollar Tree and Family Dollar stores.
The findings are drawn from Edge by Ascential's Retail Market Monitor, which analyses how individual sectors are currently performing and how they are forecast to grow by 2024.