Foodservice Solutions® Grocerant Guru® expects United States consumers to see there grocery bill decline in 2016. The reasons are simple we are entering a phase of declining commodity prices for key household items like beef, pork, chicken, and eggs; along with increased retail competition.
This year it is estimated that British households have saved an average £58 in the past year as a result of the freefall in food prices. Which were A combination of food price deflation and supermarkets slashing prices to compete with German discounters Aldi and Lidl, has meant the cost of basket of goods has fallen consecutively for the last 12 months, according to fresh figures from Kantar Worldpanel.
Well the same thing is happening here in the United States with Aldi expanding in California today they will have 50+ stores open in 2016 in California driving change and lower prices. All the while Lidl is expected to open its first US store in 2016 or early 2017 on the east coast. In any case many legacy retailers are trimming prices today too edify their customer base.
Aldi and Lidl have proven disruptive in the British marketplace as Asda suffered the biggest drop in spending with sales falling by 3pc, an acceleration on a 2.9pc fall reported last month. The Walmart-owned grocer's slice of the market has dropped to 16.6pc from 17.3pc during the same period last year.
Customer migration is underway and price is a key driver of adoption. The other key driver is the Grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food. Success does leave clues and one clue is the customer is dynamic not static. Your retail food brand must be dynamic as well. Are you evolving with a price focus or a fresh prepared food focus?
Invite Foodservice Solutions® to complete a Grocerant Scorecard or a Grocerant Program Assessment. Since 1991 www.FoodserviceSolutions.us of Tacoma, WA has been the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant Contact: Steve@FoodserviceSolutions.us