Start-ups are not the problem. Times are changing and it not a local grocery store, grocery co-op, or new start-up that is targeting legacy grocery shoppers. Today, successful well financed retailers are evolving faster than many legacy chain grocery stores.
Wawa, Sheetz, Walgreens, and even Pinkie’s Liquor stores are garnering market share from both grocery stores and restaurants as customers are looking for a solution to the age old questions What’s for Dinner?
Many legacy grocery stores continue to stock 40, 50, and 60 thousand CPG products hoping to lure customers in to their grocery store rather than a competitor’s grocery store. There are several things wrong with that mostly grocers know that their average customers buy 100 different items a year from them. That’s all 100! Why are the still stocking 40 thousand?
Walgreens Duane Reade division with fewer than 200 fresh Ready-2-Eat and Heat-N-Eat items has a garnered customer frequency rates any grocery store would die for. Like Wawa and Sheetz Duane Reade is focusing on fresh prepared, quality food, specifically targeting local demographics, and sold / delivered fast all driving incremental store visits. Yes, that drops the average ticket, get over it. That metric from 1950 worked in the 50’s, 60’s, and 70’s but is not relevant today.
Legacy retailers lamenting the loss of or decline is slotting fees if they enter the Grocerant Niche, lament no more. Someone should have informed you long ago slotting fees do not drive customer relevance, frequency or profitability. In short slotting fees are not about the customer they are about the lack of customer relevance of a manufactures product.
Ready-2-Eat and Heat-N-Eat fresh prepared food aka the Grocerant Niche continues to drive top line growth and bottom line profits. Consumers are looking for solutions for What’s for Dinner. They in most cases are not looking to cook from scratch nor are they looking for 40 thousand products.
Interested in learning how can you work grocerant niche products into your establishment to grow profits and capture customers while they are in your store? Call 253-759-7869 as for the Grocerant Guru™,