Could
the undercurrents of customer migration be a larger problem than talks of
union’s at Wal-Mart? When Wal-Mart simultaneously
closed five stores in four states on the same day this past week for alleged “plumbing
problems” our Grocerant Guru™ asked is there any other reason that they might
close five stores in four states?
Want
fresh food fast at a great price? Well if you do you are not alone. Operational efficiencies that once propelled
Wal-Mart to success, cutting cost out of the supply chain have been bettered.
Both Aldi and WinCo sell high quality food for less and the shelves are stocked
full.
For at least the last fourth years in a row that Aldi has been named
the ‘low-price grocery leader’ in the U.S. by Market Force Information Inc.
according to its latest survey. With 1,300 stores open and a three year plan to
open 650 more Aldi is a serious threat to Walmart, Publix, and Safeway all grocery
stores stuck in the middle. .
Today
WinCo
Foods has 99 stores open and is a fast growing low priced
competitor who’s products are priced below Wal-Mart in the Western U.S. with a
quality integrated Ready-2-Eat and Heat-N-Eat fresh food strategy and is
completely unfazed by Wal-Mart.
While Wal-Mart has touted Ready-2-Eat and Heat-N-Eat fresh
prepared food in commercials lately the truth is even Publix with in our
opinion seriously inconsistent quality issues with grocerant niche Ready-2-Eat
and Heat-N-Eat fresh food is miles ahead of Wal-Mart.
Sam
Walton was a merchant with an outstanding balance of intellectual intelligence and
emotional intelligence quotient (IQ & EQ), which combined created a
platform perfect for customer brand activation.
We ask does Wal-Mart have a fresh food merchantl?
Foodservice Solutions® Grocerant Guru™ blames Wal-Mart’s
heavy reliance on category managers over food merchants. It’s the exact problem
that displaced A & P, Safeway, Albertson’s and other legacy grocery stores
from a once prominent industry position.
Consumers shopping habits are shifting and legacy retailers
not focused on quality fresh food, fresh prepared, and price are losing market
share. Wal-Mart’s Ready-2-Eat fresh prepared food offerings are more akin
to offerings of industry leaders in the 1990’s than today.
Sometimes PhD’s and MBA’s get it wrong. In Wal-Mart’s case the MBA’s are running the
numbers so tight that our channel checks constantly find shelves empty, out of
stock items, and large gap holes on aisle shelves are common. . When we press less than 30% of the time is
the product even in the back room. When
we press harder we are informed there is not enough help to get it out on the
shelf. When it comes to grocerant niche
fresh food, Wal-Mart places last in every market we have tested. Wal-Mart has more IQ than EQ.
The shelves are stocked at WinCo and Aldi. Out of stocks rare, just how can that be?
Thus we ask is it time for Wal-Mart to hire a food merchant. Has category managements time come and
gone? Ready-2-Eat and Heat-N-Eat fresh
food must taste good. Do you wonder how
much of Wal-Mart’s own Ready-2-Eat Fresh Food and Heat-N-Eat fresh food
Wal-Mart category managers eat?
While
companies the ilk of Whole Foods and Wegmans continue to lead the industry in
fresh prepared food quality and options. WinCo a lower price point rival is
able to outperform Wal-Mart in large part because of the value and freshness of
its fresh prepared food.
We
think that there are plumbing problems at Wal-Mart and other legacy grocery
stores that now find themselves stuck-in- the-middle.
Sam
Walton was a merchant with an outstanding balance of IQ & EQ, which
combined created a platform perfect for customer brand activation. Sam Walton
hired category managers and display merchandisers but did anyone ever consider
hiring a food merchant at Wal-Mart?
Are you
trapped doing what you have always done and doing it the same way? Interested in learning how Foodservice
Solutions 5P’s of Food Marketing can edify your retail food brand while
creating a platform for consumer convenient meal participation, differentiation
and individualization? Email us
at: Steve@FoodserviceSolutions.us or visit: www.FoodserviceSolutions.us for more information
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