|
Post by arfanho7 on Feb 24, 2024 23:24:10 GMT -7
While online retail of groceries doesn t generally have cost advantages some segments of consumers are more than willing to pay for convenience. Second the bifurcation of income in the US will accelerate and lead to an even greater need for supermarkets to provide value. Supermarkets have long relied on a high volume low margin model and the large vibrant middle class that characterized mid twentieth century. America was essential to supermarket success. However the supermarket sweet spot in the middle of the income distribution has been shrinking for decades. As income inequality accelerates the ability of supermarkets to remain competitive will diminish as volume flees for Walmart or migrates to higher end retailers like Ukraine Mobile Number List Whole Foods. Supermarkets have already reduced costs dramatically in order to compete with much more efficient competitors and they can no longer generate price savings by cutting heads. Now too they lack the residual store level talent to shift strategy and provide service.an unstable situation for supermarket retailers. Third the bifurcation of consumer shopping trips will continue unabated with consumers looking for meal solutions on an almost nightly basis trips that have been going disproportionately to Quick Serve Restaurants QSRs and filling in their non perishable needs household items canned goods health and beauty care on separate store based trips. These non perishable trips are a place where eCommerce and other non traditional competitors like dollar stores will shine and the winners of the past two decades supercenters will fail.
|
|