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™,
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