Economic conditions and market efficiencies are meanwhile leading to the end of the smaller conventional supermarket format, as factors such as high overhead, low volume and limited assortments take their toll, according to the report. At the same time, hypermarkets and larger supermarkets are expanding services and product mixes; discounters are moving in the direction of "quality discounting," offering higher-quality products at the lowest prices; and convenience stores are catering to "eating moments." The report concludes that most food retailers have had little success utilizing the Internet as a viable option to reach the consumer. The research indicates that the e-commerce channel will remain a challenge and will represent no more than five percent of the global food business in ten years.
Moderator Comment: Is there still a significant consumer demand for self-service only retail models?
Traditional supermarkets are not becoming extinct. They evolved into the other formats we see today. In 10 years, there will be another new format du jour. It is basic competition. Adapt, adopt or atrophy. [George Anderson - Moderator]