Article at a glance:

Value-driven shopping

Value retailers—stores that combine low prices with broad variety and a quality shopping experience—have more than doubled their share of US grocery sales, from 9 percent in 1995 to 23 percent in 2002. These stores' standards for convenience, the in-store experience, and assortments match or outclass those of many traditional competitors, even on fresh foods. And consumers are no longer willing to pay the traditional grocers’ premium.

The take-away

This shift to value won’t end when the economy picks up. Customers say they would shop at discount stores more often if the stores were closer, so these retailers are rapidly expanding thanks to the strength of the operating economics.

Note: This brief article, a look at what lies ahead in a given industry, comes from our print edition's On the Horizon department.