In
preparation for the upcoming holiday season Safeway,King
Kullen, Kroger and Publix
have the shelves stacked with family favorites. In fact most legacy grocery
stores stock over 40,000 sku’s of legacy CPG food items. There is but one problem the average family
only buys 100 different items a year from a grocery stores.
Fact’s
aside the holiday season will be great for legacy grocery stores and
non-traditional food retailers. Consumers today don’t want to cook from
scratch. But the Grocery stores will try to convince you that you do, have to,
or should. Buy food from them or not, the grocery store has already been paid.
How
you ask? Legacy grocery stores have
received PAYMENT, (slotting fees) from food manufactures the ilk of Campbell’s, Coca Cola,
J.M.
Smucker, and Nestle to put each of their products on the shelves.
Companies the ilk of Whole Foods are garnering market share from traditional
supermarkets because they focus on selling ‘better for you’ fresh prepared
food.
Fresh
prepared Ready-2-Eat and Heat-N-Eat food is considered ‘better for you’ by
consumers. Whole Foods understands that
both Millennials and Boomers alike are focusing more on healthy eating choices
and creatively prepared meals that they don’t have to cook from scratch
according to Foodservice Solutions® Grocerant Guru™.
Retailers
that focusing on fresh prepared Ready-2-Eat and Heat-N-Eat food have a distinct
advantage over legacy grocery stores. That advantage is simple customers. Those customers more concerned about price are
or have migrated to the dollar store sector, Aldi, or other retailers where
quality or price trump selection.
Value
matters to consumers Ready-2-Eat and Heat-N-Eat fresh prepared food is valued
by consumers and Whole Foods understands delivering quality, consistency, and
fresh differentiation within the Grocerant
Niche.
Steven Johnson is Grocerant Guru™ at
Tacoma, WA based Foodservice Solutions®, with extensive experience as a
multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has
been the global leader in the Grocerant niche.
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