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Good Question! People still have to eat, but want to do so for less money. So fewer trips to the restaurant, fewer calls to deliver Pizza--- but purchases of frozen pizza and hamburger will increase. The surprise is the type of grocery store that will prosper. Food Lion and other "low cost" alternatives-- no way. Their shoppers already are cost conscious. Now those shoppers will go to Sam's Club or CostCo to "stock up" and buy less of the perishables, where stores make their money. Their shoppers already avoided excessive restaurants and whatnot. No, the surprise is that quality stores, particularly independents will prosper. The little-known independents will shine-- stores like the Village Grocery on the Outer Banks of NC. As their shoppers pull back, they'll pull into the parking lot more often. Why, after all, buy a $100.00 bottle of wine at a restaurant when you can buy the same at the Village Grocery for $35.00? Why not buy some angus beef for the grill, rather than spend four times the amount at a restaurant? And if you must cut back in other parts of your life, why not splurge fairly cheaply, for chocolates or a beer from Brussels?

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15y ago
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Q: How will recession effect grocery stores?
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