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Specialty Chains Grabbing A Bite Of Fresh, Convenient Food Sales; Drug and dollar stores cater to those shopping for ease, not low prices.(A)
Byline: DONNA HOWELL
A new cold war is pitting supermarkets against corner shops.
Drugstores, convenience marts and neighborhood dollar stores are using display coolers stocked with sandwiches, milk, eggs and other fresh items to draw customers. That's chipping away at traditional grocers, already squeezed by discounters like Wal-Mart, which is the top U.S. seller of groceries.
"Drugstores and dollar stores suddenly all have refrigeration," said Howard Davidowitz, chairman of retail consultancy Davidowitz & Associates in New York. "They've dramatically increased their food offering."
It will further pressure grocers that are under the gun. Davidowitz mentions Winn Dixie, which filed for Chapter 11 bankruptcy protection in February. It's now deciding which stores to close.
"The traditional supermarket share has collapsed," he said. "In 1988, 90% of food and consumable dollars were spent at traditional supermarkets. Today it's less than 56% and going south."
Food Everywhere
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