Grocery Store Format Series: Limited Assortment

What is driving the rapid rise of limited assortment grocery stores — and why are they gaining share in today’s value-focused environment?

This report takes a closer look at one of the fastest-growing grocery formats in the U.S., projected to account for roughly 22% of new store openings with an expected growth rate of around 10%.

From Aldi’s aggressive expansion strategy to the format’s reliance on private-label products and smaller store footprints, limited assortment retailers are reshaping how value-driven consumers shop.

While these stores generate significantly lower total sales than traditional grocers, the real story lies in their strong sales efficiency and ability to outperform on a per-square-foot basis.

But here’s the catch —With performance varying significantly by region and growth heavily tied to a few dominant players, an important question emerges:

Can the limited assortment model sustain its rapid expansion, or will its success remain concentrated among a small group of leading operators?

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