Grocerant Niche Disruption Expanding

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. 

Since 1991 www.FoodserviceSolutions.us  a Tacoma, WA based retail foodservice consultancy has been the global leader in the Grocerant niche. Is your company ready for a grocerant niche scorecard? Could outside eyes help you drive inside profits? 253-759-7869 Email: Steve@FoodserviceSolutions.us