Given the razor-thin margins of grocery stores I'm not sure why they don't try a more ad-supported model. Hang huge colorful printed ads over each aisle, charge fees to the name-brands if they want to be placed anywhere but directly behind the store brand, etc. Seems like they could squeeze more profit than they're currently getting.
I think they do some of those things now, with ads on the floor, blinky-lighted coupon dispensers, end-caps (?) and so on. I suppose it could get uglier, though. ;)
I also think they've become savvier about promoting their generic brands.
