Foodservice Solutions® Grocerant Guru™ first outlined the growth of new non-traditional points of Ready-2-Eat and Heat-N-Eat fresh food distribution in 1997. Today, the retail food sector is witnessing some of the most rapid customer migration ever from channel to channel and new-nontraditional offerings.
Most notable is the successful integration of Ready-2-Eat and Heat-N-Eat fresh prepared food within the convenience store sector. That integration is driving new customers, expansion, and copycatting from other non-traditional fresh food retailers the ilk of dollar stores, liquor stores, chain drug stores according to our Grocerant Guru™.
Legacy grocery stores are feeling the pain from this migration, and it does not look like it will ebb any time soon. According to Willard Bishop, “These non-traditional channels will continue to chip away at the market share of traditional grocery channels”
Bishop, projects a “decrease in market share of 1.2 percentage points by 2018 in the traditional channels, which will equate to 44.8% of the market. Non-traditional grocery and convenience store channels will command 40.1% and 15.1% of the market, respectively. Supercenters will also experience dramatic growth, an estimated 19.4% share by 2018.”
Foodservice Solutions® team has stated previously on this blog that Millennials desire for discovery and all things leveraging technology will continue to drive trial, adoption, and migration for new, online shopping, Timed-Pick-Ups, Timed-delivery, and “drive-thru concepts where customers order online and pick up their product right from their cars at a designated location.
Dollar stores, Chain Drug stores, Liquor stores, and C-stores will all continue to garner new customers as they expand Ready-2-Eat and Heat-N-Eat fresh prepared food offerings. This has become a battle for share of stomach that is leaving some legacy retailers behind.