Thursday, June 7, 2012

Food Positioning may not be working at Supervalu.



Is Albertson’s the next A & P?  Whole Foods, Trader Joe’s, Walgreens, Fresh & Easy Neighborhood Market all have a marketing focus on ready-2-eat fresh and prepared food in a reduced footprint.  Trapped in rapidly evolving food retail world with a legacy retail food model Albertsons officials announced that they will lay off some 2,500 employees from 247 Southern California stores. 

When retailers don’t change with the consumer, the results are often a slow downward spiral that is never a pretty site. The number one request from consumers over the past 10 years has seemingly been that it simply takes too long to shop in a grocery store.  Yet many legacy operators insist on utilizing outdated consumer metric’s to measure in store successes the ilk of “basket size”.

Consumers like the ready-2-eat and heat-n-eat fresh prepared food options offered at all of the reduced footprint retailers.  Success leaves clues and retailers must pay attention to the consumer.  When non-traditional retailers garner share there is a reason.  Consumers are dynamic not static. 

Nielsen reported that US consumers when given a choice prefer Online shopping to In-store.  In fact here is what they said “Which do US consumers prefer: In-store, online, or mobile purchases? …Connected purchasing was rated the Overall favorite by 59% of those surveyed, as well as the Easiest 68% and most convenient by 68%.... As the newest channel, Mobile has a long way to go before it gains broad acceptance. It was in third place across all measures except for two: It was a distant second to Online for “Most convenient” (38%) and “Easiest (27%).

Companies that utilize Foodservice Solutions® 5 P’s of food marketing: Product, Packaging, Placement, Portability and Price; will understand success can be found within the grocerant niche. Building strong sales if they roll out an integrated grocerant niche food program with distinctive differentiated food consumables as an entity with identity by day part.  Food retailers must not do as they did 20 years ago, but must focus on what the consumer wants today and you will not be the next A & P.

 Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Bing or Google Grocerants or visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant Email: grocerant@q.com

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