Walmart's Grocery Expansion Prompts Grocery Stores To Move Upscale Or Launch Own Low-Price Play

Walmart's expansion into the grocery segment forced grocery store companies to adopt a more upscale business model or go the discount route in the United States. Traditional grocery stores lost 17 percent of their business, mostly repeat customers, to Walmart, according to a market study by University of California San Diego marketing professor Karsten Hansen and colleagues. Also, the study found that most of customers who shifted to Walmart are people who do not have plenty of time to shop. Other customers, however, who wanted more choices, such as in terms of brand, and who are willing to pay a little more have prompted high-end retailers, such as Trader Joe's and Whole Foods, to expand their business. Some retailers, such as Save-a-Lot and Aldi, are offering products at discounted prices, trying to beat Walmart on its own low-price game.