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The St. Louis Post-Dispatch reports that Supervalu-owned Save-A-Lot, which specializes in a no-frills, discount-driven shopping experience, seems to be perfectly positioned to capitalize on current economic difficulties being suffered in the US. And the numbers seem to back this conclusion up – Willard Bishop Consulting says that limited assortment/discount stores saw their sales increase by 16 percent as traditional supermarkets went up three percent. Big difference.

“These basic grocers keep costs down by utilizing smaller stores with lower
employee costs and limiting inventory to products that customers most often
purchase,” the Post-Dispatch. “ Despite the sometimes Spartan selection, cost conscious consumers are flocking to the stores.”

However, the story also notes that despite the growth in sales, some consumers have a blind spot for the format. In St. Louis, for example, where Save-A-Lot has 26 stores, the chain found that many consumers either didn’t know about Save-A-Lot or were not aware of its strategic positioning … and so it has launched an aggressive marketing campaign designed to heighten its visibility there.

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