Hard discounters have been on the market fringes in North America, but current developments indicate that they are poised to make their move and become a staple in the American grocery market.
The enclosed article takes a closer look at the threat hard discounters pose to established grocers. It explains why the hard discount model works and why it has been successfully exported across country borders. The track record is clear: as discounters grow in each market, incumbent grocers confront a formidable competitor – one that is particularly hard to compete with because it undermines the foundations of the traditional grocery model.
The article concludes by describing a list of possible strategies that food retailers might use to help them adapt to this new threat.