Albertsons
and Safeway were at one time industry leading brands just like A&P (The
Great Atlantic & Pacific Tea Company).
Each as industry leaders were brands stuck in the middle, today combined
they still are positioned in the middle of the marketplace catering to all;
focused on yesterday’s food retail positioning rather than tomorrows customer
according to Foodservice Solutions® Grocerant Guru™.
When
the Great Atlantic & Pacific Tea filed for creditor protection in July,
which was by the way about three years after emerging from a prior
bankruptcy. A&P, Waldbaums, Food
Emporium, Super Fresh, Pathmark, and Food Basics, as well as its namesake
A&P stores.
Remember
it was not long ago that Safeway had to sell of it Canadian operations, Albertsons
was bought by Supervalu after losing its way. Today the company with brands
from Albertsons, Safeway, Von’s, Acme Markets, Bristol Farms,
Jewel-Osco, Shaw's Supermarkets, Star Markets and more is looking more and more
like A&P all the time.
Yes,
multiple brands all focused on the middle market; just how well did that work
for A&P? Each of these brands has a
seemingly greater focus on yesterday’s business model of demanding slotting
fee’s rather than tomorrow’s model of grocerant niche Ready-2-Eat and Heat-N-Eat
fresh food. Why?
WinCo
has proven very successful as a low price competitor in the western US where
Kroger has been forced to reduce prices across the board at all locations over
the past six months. Aldi with quality private label food products, focused on
price is the fastest growing grocery
store in the United States and is about to burst on the seen in California.
Foodservice
Solutions®, Grocerant Guru™ predicts that Albertsons will struggled to compete
with the newcomers WinCo and Aldi just as it has with Wegmans, Whole Foods Market Inc. and Trader Joe’s Co. So,
we ask do you think Albertsons can win positioned in the middle if so for how
long?
This
is the grocery business not brain surgery.
The vast majority of retail food customers do not want to cook from
scratch, do dishes, or spend the time planning meals. They want fresh prepared
meal components that can be mixed and matched into a customized family meal
quickly according to our Grocerant Guru™ as regular readers of this blog know.
So,
is there a difference between Albertsons and A&P? We think not.
Online retailers the ilk of Hello fresh, Blue Apron, O’ and Aldi are
winning the hearts and minds of consumers.
We don’t think there is a difference between Albertsons and A&P. We predict a slow decline in Albertsons sales
per unit, and predict more store closing from both Safeway and Albertsons as
Aldi, WinCo, Hello Fresh, AmazonFresh, and Blue Apron continue to evolve with
consumers.
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 Call: 253-759-7869 or Email: Steve@FoodserviceSolutions.us
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