The traditional supermarket is losing its attraction for grocery shoppers, who increasingly buy their food at supercenters, dollar stores and club stores, although supermarkets remain the dominant retailer. Three USDA economists found correlations between where people buy their food, their income levels and what they buy.
Low-income consumers are more likely than high-income consumers to shop for groceries at supercenters, convenience stores and dollar stores, say the economists. “In contrast, high-income consumers are more likely to shop at conventional supermarkets and club stores.” Across the socioeconomic board, Americans don’t follow the Dietary Guidelines, but expenditures on fruits, vegetables, whole grains and lean meat are highest at supermarkets and club stores and lowest at convenience stores, drug stores and dollar stores.
“The store formats … influence what they purchase,” says USDA in a summary of the report. Supercenters emphasize low prices and one-stop shopping, for example, while convenience stores sell a limited range of staple foods as well as ready-to-eat food. Dollar stores focus on packaged foods. Club stores offer food and beverage in bulk with limited customer service. Supermarkets stress service and quality of their merchandise.
Supermarkets capture around 60 cents of the grocery dollar, compared to 75 or 80 cents in the late 1990s, according to market research. Supercenters surged from 3 percent of the grocery market in the late 1990s to around 18 percent now.