Continued food consumer migration from restaurants and legacy grocery
stores to fresh prepared meal components is driving food retail realignment.
Legacy big box stores that cannot be shut are now converting legacy CPG space
into Fresh Prepared Grocerant niche food space. While full restaurants are
increasing meal component offering in Buy one Get one To-Go and QSR’s are
focusing on price, speed and new menu offerings.
In RetailNet Groups recent Webinar: Winning Store Formats of the Future found
adding grocerants, expanding to go foods, merchandising more
fresh prepared food and less center store while appealing to an ever expanding global
palate are just a few of growth platforms legacy big box retailers are employing
to maintain profitability and customers.
Meal Component
Bundling
Grocerant ready-2-eat and heat-n-eat fresh prepared food is causing significant
mix shifts from legacy CPG products to fresh prepared food due increasing
customer migration. Today legacy faced with the need to reallocate the space,
often replacing it with new services and fresh food experiences that will bring
in new traffic to the store. For many legacy big box retailers, adding
grocerant fresh prepared food is a good solution to provide a differentiated
experience, drive traffic and compete with QSR’s.
Deferral Cooking
Consumers do not want to cook from scratch.
A home cooked meal is comprised of bundled meal components. The lack of a multi-ethnic cooking skill-set
combined with time-starved consumers need for convenience are causing retailers
to add or expand prepared To-Go foods departments, add inside seating options,
and offering heat-N-eat options. There is a food
migration that is occurring that is going from scratch too fresh prepared too To-Go
foods all fall under the umbrella of the grocerant niche.
Proximity Shoppers Drives Convenience Store Fresh Food
Since 1991 the number one reoccurring complaint about grocery shopping has
been how much time it took. Convenience stores with a small foot print figured
that out. Then they discovered coffee,
fresh coffee and fresh food. The RetailNet Group found “factors such as
urbanization, an aging population and an increased preference for proximity are
driving a fundamentally new convenience store. There will be new
multi-destination convenience superstores that will aim to roll up independents
and compete directly with QSR. As such, the convenience competitive set is
broadening.”
Sheetz, Wawa, Rutter’s and 7 Eleven are all expanding driven by fresh
prepared food, meal components, a proximity to customers that elevates a
personal relationship through high frequency coffee trips, a differentiated fresh
food, and priced to compete with QSR’s.
The retail food space is not brain surgery it is evolving more rapidly
today than it has in the past 20 years.
Fundamentally the retail food space remains very much the same,
consumers are in control.
Invite Foodservice
Solutions® to complete a Migration
Marketing assessment, grocerant program
assessment. For brand, product placement, menu positioning assistance simply
call Foodservice Solutions® today. 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
Excellent points!
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