A USA Today article reports that Aldi currently has 1,135 stores in 30+ states with plans to open up to 100 more this year. Save-A-Lot, a divison of Supervalu, is looking to more than double its current store count to reach roughly 2,400 locations over the next five years. West Coast-based Grocery Outlet plans to add 15 stores in 2011 to the 150 it currently operates.
Limited-assortment grocers have benefited from consumers' willingness to substitute private label for national brands.
Fifty-four percent of consumers in an August 2010 survey told SymphonyIRI Group they were buying more store brands.
"Slightly more than one-third of consumers tell us they're struggling to afford groceries. That has increased 11 [percentage] points over the past six months," Susan Viamari, editor of SymphonyIRI's Times & Trends, told USA Today.
Another advantage to limited-assortment grocers is store size.
As Phil Lempert of supermarketguru.com told CBS News, "People really have gotten very frustrated going into supermarkets. ...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 faster, and get out."