While the economy is slowly turning the corner the grocery sector is stifled in place. Even with the enormous expansion of the SNAP program during this period economic discontinuity Convenience stores and Dollar stores garnered more market share than did grocery retailers. The reasons run simply from price and speed of service too high quality ready-2-eat fresh prepared food.
Safeway withdrew from key east coast locations leaving speculation that it might be for sale. With Walgreens entering the fresh prepared food space traditional grocery stores the ilk of Safeway are sure to come under more competitive pressure. Each step forward with the economy will reduce the size of the SNAP program and thus again shrink the grocery once again. Ah but Safeway just might be different here are 5 reasons we think Safeway would be a good company to buy:
1. Outstanding ready-2-eat and heat-N-eat food options
2. Integrated marketing messaging of ready-2-eat fresh prepared food
3. Digital Just For You app (pricing-product personalization)
4. Ability to build 20,000sf stores for aging units that were 60,000sf
5. Focus on fresh “local” foods with legacy “since we are neighbors lets be friends” campaign
Many legacy grocery retailers have tried to be all things to everyone. Safeway may have been one of those as well. However when it comes to understanding the future of retail foodservice Safeway gets the ready-2-eat and heat-N-eat food niche better than most.
Outside eyes can deliver top sales and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson