Sari JN-Francois
Discount Food Retailing in the Toronto Area: A Comparison of the Location Strategies of Price Choppers, No Frills Food Basics Between 1996 to 2001 © 2003
The discount supermarket sector has experienced significant growth over recent years. This study examines and compares the location strategies of three major discount chains - No Frills, Food Basics and Price Chopper - in the Toronto Area between 1996 to 2001. The study found that discount chains have targeted areas that are significantly different from those areas targeted by conventional supermarkets in terms of socioeconomic characteristics. Household incomes, dwelling values, and the percentage of population with a university education were all found to be lower in discount chains' trade areas compared to conventional chains. Of the three chains, Price Chopper has targeted the lowest income areas. Discount chain have generally attempted to avoid competitor discount stores, however, rapid growth in this sector has meant that stores have been increasingly forced to locate closer to competitors in order to reach their target market. In the Toronto area the number of these 'ideal' lower income areas are decreasing, in terms of new development opportunities, and competition in the sector is likely to increase over the next few years.