1、All rights reserved/Confidential1Maximizing Brand Equity in New MarketsR E P O R T2024All rights reserved/Confidential2I NT RO DUC TI O N“Grocery is an annuity business”a retail executive once told me.That comment relates to the fact that long-term sales growth for the industry(3%YoY)tracks closely

2、with the long-term run rate of inflation(2%YoY)as well as general population growth(1%YoY).In short,people have to eatand as long as prices and the number of mouths to feed keeps going up,even your average grocery business will enjoy at least some amount of growth.For retailers whose ambitions are h

3、igher,though,one key way to accelerate growth is through building stores and expanding into new markets.Expansion into new territories provides instant access to more mouths to feed(along with the other basic needs that common food and non-food products cover).Some banners have been more focused on

4、this than others.According to Edge Ascential,from 2018 to the fall of 2023,Dollar General has added more new stores than any other retailer:4,500 new locations.Dollar Tree comes in second,at 1,250,followed by Aldi(510),Target(310),and Publix(120).Elsewhere,other organizations are adding new location

5、s through acquisition.Northeastern Grocers has acquired Tops Markets,for instance,and Aldi has done the same with SEG.Both may now be wondering whether to rebanner some of those new locations.All rights reserved/Confidential3Top 20 Retailers in the U.S.,Store Count Net Change Since 2023Banners201820

6、192020202120222023Net Store Count Change 2018-2023Growth RateDollar General15,367 16,272 17,153 18,053 18,980 19,893 4,526 29%Dollar Tree6,776 7,280 7,580 7,824 7,897 8,030 1,254 19%Family Dollar8,236 7,783 7,880 8,016 8,206 8,350 114 1%Aldi1,889 2,005 2,005 2,100 2,280 2,400 511 27%Target3,544 3,59