US Grocers Face More Than Just Amazon | The Epoch Times

Traditional food retailers are facing challenges from online retailers as well as discounters.

According to market research firm YouGov, online grocery market sales will reach $30 billion in 2021, up from $12 billion in 2016.

While online retail emphasizes convenience and efficiency on the higher end of the market, discount retailers put additional pressure on prices and margins. YouGov reports that 42 percent of grocery shoppers it surveyed say that discount supermarkets are just as good as regular supermarkets. “Aldi and Lidl follow a pricing strategy that might change the customer’s perception of prices: good food for a good price might convince customers as it did already in other markets,” the YouGov report states.

In the long term, can Lidl and Aldi convince more U.S. shoppers that their private-label items are just as good as name-brand products? If history can be used as a guide, the answer is yes. Over the last 10 years, Lidl and Aldi have already disrupted the food retail industry in the UK, hurting the business of established players such as Tesco, Sainsbury, and Asda (a unit of Walmart).

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US Grocers Face More Than Just Amazon | grocery | supermarkets | The Epoch Times.