Dollar
stores have cherry picked the “center of the store” (grocery aisle shelf stable
goods) for 15 years. Consumers have
responded with frequent trips to Dollar stores buying shelf stable products for
less. Even more important consumers can
get in and out of Dollar stores fast. While legacy grocery stores continue
focusing on legacy metric’s the ilk of “basket size”. Consumers have wondered on, looking for fresh
prepared ready-2-eat and or fresh prepared heat-N-eat food aka grocerant food.
Food
industry analysts have not been surprised by the volume of sales declines over
the last two quarters of many “center of the store” items. “Heinz reported a
drop of 2.4 percent in its second quarter. Kraft unit sales were down 2.8
percent in its first quarter, and at Kellogg, its North American volumes were down
1.7 percent in its second quarter.” These analysts continually report on the
success of the fresh food stations at Whole Foods, the sales per square foot at
Trader Joe’s filled with ready-2-eat and heat-N-eat fresh prepared food. Is your company doing what is has always
done? Are you waiting for consumers to
come back? Consumers move forward.
Consumers
talk about cooking from scratch but when probed it’s clear a “home cooked” meal
for a family of four with the parents under 40 is typically a bagged salad,
rotisserie chicken, and vegetable or desert bought from a store. Bundling meal mix and match components from
fresh prepared ready-2-eat or heat-N-eat food into a customized family meal is
fast replacing cooking from scratch.
Legacy
food retailers must evolve with the consumer.
It they do not they risk becoming the next Tower Records, Blockbuster
Video or Burger Chef. Is your company
ready to move forward?
Invite Foodservice Solutions® to complete a
grocerant program assessment, brand, product placement or positioning
assistance. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global
leader in the Grocerant niche visit Facebook.com/Steven Johnson,
Linkedin.com/in/grocerant or twitter.com/grocerant.
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