The grocery store shopper
is not eating less. The grocery store
shoppers are buying food and eating food from other outlets including Convenience
stores, Meal-Kit delivery companies and of other non-traditional fresh food
retailers according to Foodservice Solutions® Grocerant Guru™ Steven Johnson.
The problem for legacy
grocery stores is what do they do with the ‘miles of aisles’ consumer never
wanted to walk and aren’t walking now?
They are experiencing the same thing that Safeway experienced footprint malaise.
The quagmire is of their
own making. Now the questions is how to downsize legacy units without
capitulating market share while building out smaller consumer relevant retail
locations. It’s not easy but here is a glimpse what some are doing and what we
suggest.
1.
Asda /Walmart
offers a drive-thru so you can pick you preplaced order. Tesco has been
turning over space to food outlets such as Harris + Hoole, which it half owns,
and Euphorium Bakeries.
2.
Tesco has
added to gyms and soft play centers.
3.
Tesco has
even let surplus car park space to vehicle hire firm Avis
4. Asda/Walmart is testing "rapid scan" till
that can scan groceries three times as fast as any human.
5.
Asda/Walmart
is cashing in on Britain's growing love
affair with click-and-collect shopping by putting collection points in its
stores as well as in petrol stations and installing unmanned secure lockers
near office blocks where commuters can collect their groceries on the way home.
While
all those actions are keeping legacy grocery stores busy. The customer is in search of new
discovery and those actions simply won’t
work magic. Hello Fresh, Plated and Blue
Apron are filling a gap, Munchery, Wawa, Sheetz, and Rutter’s are all filling
the gap.
In
fact the Institute of Grocery Distribution, an industry thinktank, predicts “that
£3bn less will be rung up in big stores in British grocery stores (over 25,000
sq ft) in five years' time”. That 3 billion others are all after. The same
report suggest that “discounters – Aldi, Lidl and Poundland – will almost
double in size to account for £1 out of every £9 spent on
British groceries.” The same will
happen in the U.S. market.
The
reality is there is a new retail paradigm that all retailers are facing and consumers are
migrating at record pace. The retail model of the past 35 years is fading. Today consumer relevant business models all
have a heavy mix of Ready-2-Eat and Heat-N-Eat fresh prepared food.
Legacy retailers must realize that these new models
are not about customer cannibalization for many it may be about retail survival.
Foodservice Solutions® specializes the
Ready-2-Eat and Heat-N-Eat Fresh Prepared Food niche aka the Grocerant
niche. www.FoodserviceSolutions.us We can help you identify, quantify and
qualify additional food retail segment opportunities or a brand leveraging
integration strategy
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