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Article | December 8, 2008
Who shops where and why...
The economy is shaping the way ALL consumers are shopping these days.
According to one report, "one-fifth of shoppers altered their grocery shopping behavior due to economic conditions." Lower-income consumers are moving to even lower-cost retailers—especially "dollar" stores, and extreme-value supermarkets (Cub Food, Save-A-Lot). And the average and above-average income shopper is hitting the likes of Wal-Mart and Target more than they used to. Which retailers are suffering most? According to the study, higher-priced specialty food retailers (Trader Joe's, The Fresh Market) and health/natural-food supermarkets (Whole Foods, Wild Oats) are struggling to retain their customer base. Still, conventional supermarkets remain stable—shoppers hit these stores to start or finish their shopping duties. Interestingly, "upscale shoppers rationalize spending more on organic and natural products if they fill their pantries affordably by buying some goods in bulk," from warehouse clubs and extreme-value supermarkets.
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