The Real Challenge of Food Discounters

Abstract

How do discount food stores compare with conventional supermarkets? Can they underprice and still operate profitably? Are they able to reduce operating expenses? Is the food discounter a threat to the conventional supermarket? This article provides some insights into these questions based upon the practices of three noncompeting companies engaged in both conventional supermarket and discount food operations. The author also reports the actual operating figures of comparable discount and conventional outlets.