In order to expand, Costcutter would be well advised to consider methods of expansion other than increasing the number of stores within the UK as in most areas of the UK the market is approaching saturation. Before opening any new stores, Costcutter needs to carefully consider the local market to check whether there is sufficient local demand to justify opening an additional store in that area or whether competition from the convenience stores operated by the larger firms will be too fierce. Where it is not appropriate to open a new store, Costcutter should consider how they can expand or increase profitability by alternative methods. For example, Costcutter should research into changes in consumer preferences and demographics and adjust their products and services accordingly. This may involve expanding the range of premium brands that are stocked. As incomes increase, so does the demand for 'luxury goods'. Therefore this is one potential area for expansion. The increase in single-person households may effect the demand for convenient, quick, one person ready meals and so Costcutter should also consider stocking a bigger range of these products. Furthermore, Costcutter may benefit from diversifying into non-grocery products and services.