Discount grocers to outperform conventional stores as food prices surge: Report

Discount grocery stores are expected to outshine their conventional counterparts in 2023 as shoppers seek out cheaper food to cope with staggering price increases, a new report released Monday said.

The DBRS Morningstar commentary said surging inflation and interest rates are shaping consumer behaviour and increasing sales at lower-cost grocery stores.

Consumer efforts to curtail spending are expected to encourage more home cooking, benefitting the grocery industry in general as people forgo restaurant dining to cut costs, it said. 

Yet discount grocers are expected to see the biggest increase in sales, the report said.