Discount grocers are getting it right... here's how

Earlier this month Supermarket News listed six reasons that discount grocers continue to grow, and provided the following background.

Ten years ago, two-thirds of U.S. shoppers reported that supermarkets were their primary grocery channel, as per the Food Marketing Institute's 2016 U.S. Grocery Shopping Trends Report. However, in 2016, only 49% of U.S. shoppers said that supermarkets were still their primary grocery channel. The average shopper is now using five to seven retail channels and two to three shopping channels on a regular basis. More than half of Americans feel overworked and overwhelmed, making convenience increasingly important.

Here are the six things that discount grocers are getting right, according to Supermarket News, and below is a link to the article that provides more detail on each point.

• Good deals attract consumers from all economic levels.
• Stores that are modern, convenient and offer a more supermarket-type experience with great value attract customers.
• Discounters benefit by offering a wide selection of products including wine, produce, health and beauty, bakery and organic products.
• Discounters are customer-obsessed about their brand and model, and keeping it very simple.
• Discounters are proving private labels can provide extremely good quality and amazing values.
• Discounters are adopting multi-channels.

Viewpoints: What discount grocers are getting right

Dollar Tree continues to add coolers, ramp up competition with food stores

Dollar Tree said last month that it would add coolers for frozen and refrigerated foods to 550 stores this year, which is more than it has ever added in one year. Coolers were added to 215 stores in the company's second fiscal quarter, and it now has coolers in nearly 3,000 of its 4,842 locations.

Coolers in dollar stores are significant, of course, as it allows them to increase the amount of grocery items they carry, and allows them to compete head to head with traditional supermarkets, discount grocers and other retailers that sell food.

Net income for Dollar Tree in the second quarter rose 4.6% to $124.7 million on sales of $1.85 billion.