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Discount grocers outpacing traditional supermarkets

Discount grocers outpacing traditional supermarkets

Sales growth at discount grocers like Aldi, Lidl and Grocery Outlet outpaced overall grocery sales growth in 2022, according to a report from Coresight Research. The report concluded that “discount channel growth will continue to outpace total grocery growth in 2023 and beyond.”

Much of the sales growth by discounters has been fueled by their aggressive expansion in recent years, as well as future expansion plans. Aldi planned to open 150 stores in 2022 and said it was on track to become the third-largest grocer in the United States. Grocery Outlet and Lidl are also expanding rapidly.

Save-A-Lot is the discount grocer bucking the trend as it has struggled with debt and has decreased its store count.

Inflation has also been a factor in sales growth by discounters, and a recent Colliers report found that 34.7% of consumers said they would shop more in value stores if inflation persisted.

Although dollar stores were not included in the Coresight report, they have also been expanding aggressively and increasing their focus on grocery offerings.