According to a recent white paper released by Placer.ai, specialty and value grocery chains were the top performers in the industry for year-over-year visit growth in Q3 2024. The white paper, titled “Specialty and Value Chains Transform Grocery in 2024,” highlights how location analytics have shown an increasing trend of shoppers being drawn to these two types of grocery stores, potentially reshaping the landscape.
Some key points from the white paper include:
– Traditional grocery store visits decreased by 0.5% year-over-year while value and specialty chains saw increases of 5.0% and 5.2%, respectively.
– Consumers are willing to travel further distances to shop at specialty grocery stores.
– Unique products are a major factor driving consumers towards Trader Joe’s and Sprouts.
In terms of value grocery chains like ALDI or Trader Joe’s, visitors tend to spend more time in-store compared to traditional or specialty grocers (26.5% vs 23.4% &23 .7%). This is likely due to taking their time examining price points for better deals.
The majority of products sold at ALDI &Trader Joe’s are owned brands which can be offered at lower prices than national brands according R.J Hottovy Head Of Analytical Research At Placer.ai Additionally discount banners such as H-E-B’s Joe V’s Smart Shop & Hy-Vee’s Dollar Fresh continue expanding across traditional grocers as well
Hottovy believes that both value and speciality chain will continue attracting consumers going forward with inflation moderating but still higher than previous years suggesting continued visits ahead As preferences evolve ,specialty grocers should remain preferred destinations offering unique authentic product offerings
