Make no mistake: Supermarkets remain the dominant channel for milk, responsible for more than three-quarters of sales. However, alternative formats are milking sales and increasing share. Even Sears, the major appliance giant, sells quarts and gallons of skim, whole and 2% at the new Sears Grand store in West Jordan, Utah. The 210,000-square-foot store is the retailer's answer to competition from Kohl's, Target and Wal-Mart. "There was a time when people went and bought their milk at the ...

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