MIAMI (CBS4) – As more and more Americans struggle to pay for groceries, a niche market created by some savvy merchants – discount grocery stores – is taking off.
For shoppers it means saving money on food without coupons or waiting for sales at the major chain stores.
“Over the few years the biggest impact that we’ve had in food retailing has to do with three major chains: Grocery Outlet, Save-a-Lot, and ALDI,” said Phil Lempert of SupermarketGuru.com.
Recently another discount grocer, ALDI, opened several locations across South Florida.
Typically discount grocery stores are smaller, have few brand names and shoppers have to bag their own groceries. And while they may not have fancy bakeries or del counters, shoppers can find items like canned vegetables for under 50-cents.
“People really have gotten frustrated going into supermarkets that are loaded with 50,000 items. These stores on average are about a third or a quarter of the size. So you are able to get in the store, find what you want fast, and get out,” said Lempert.
Save-A-Lot and ALDI are able to keep prices low by selling private label brands meaning the brands are specific to those stores.
Save-A-Lot, with 12-hundred stores in 39 states, plans to double the company’s size within the next three years. ALDI, with more than 11-hundred stores in 30 states, plans to add 80 new stores in 2011.