They sell luxury food items. When money is tight, or job's future is uncertain, people are more likely to look at cheaper alternatives.
Yes, but I'm seeing hometown groceries with a few more upscale offerings. Foodies don't require a lot of luxury goods, but Murray's Cheeses are now in Krogers! Foodies will shop less at Whole Foods, but they still need to find DeCecco pasta and a variety of kale.
(Kale! Who would have thought this poverty food, easily grown in fall and spring when it's still freezing…would be emblematic of the Birkenstock bunch?)