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Consumers have been shifting rapidly from a mind-set that seeks out "good-better-best" to one that seeks out "good enough." That's because "good enough" products already are over-delivering against shopper expectations for quality, fashion and features-all at a great price.
As a result, value-oriented retail sectors-such as discount stores/ supercenters, dollar stores and clubs-have been key benefactors.
Discount department stores posted another year of strong sales growth in 2003, fueled primarily by supercenter expansion and higher consumer spending associated with the recovering economy. Nominal sales grew by 6.4% in 2003.
The two segments comprising the channel-supercenters and conventional discount stores-recorded widely divergent results.
Supercenter sales grew 17.6% in 2003, as the sector attained a milestone. For the first time ever, supercenter sales surpassed that of conventional discount stores.
Supercenters will continue to blanket the nation. Most will be Wal-Mart Supercenters.
In contrast, conventional discount store sales were down 4.1% in 2003, largely the result of 300+ Kmart store closings and continued Wal-Mart conversions to the supercenter format.
Plenty of expansion runway remains for leading players Wal-Mart and Target. Another 1,300 supercenters are projected to come on board,...