While most retailers are rushing to close stores and sell products online to generate top line sales and bottom line profits. IKEA is driving overall customer counts by expanding and evolving its grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food according to Foodservice Solutions® Grocerant Guru®. Remember IKEA hit $ 2 Billion in grocerant niche food sales back in 2013, which is not bad for a furniture store.
Success at IKEA has come by increasing brick and mortar sales where profit margins are highest within its retail foodservice. By improving the company’s foodservice offerings represents a fundamental shift in approach and a sure sign of commitment to brick and mortar in the face of increased competition for furniture online.
IKEA reported that a new trend has emerged in which foodservice sales at IKEAs across the US have outpaced retail sales overall, meaning American consumers are increasingly coming solely for the food. Yes, IKEA is destination dinning.
Non-traditional fresh food points of distribution are not just a U.S. trend it is global. The IKEA report went on to say in China, a market in which IKEA’s foodservice sales have experienced rapid growth. “Chinese consumers can enjoy both Swedish classics as well as a fresh take on local dishes, such as roasted pork neck in mango sauce and shrimp cakes. Total foodservice value sales in China grew by 23% in 2014, compared to 18% growth in overall retail.”
IKEA’s CEO outlined plans to expand, evolve and capture the growing demand in foodservice in the US, the plans call for remodeling “its US-based cafeterias in 2016 to create three distinct spaces that reflect the diverse needs of its customers, including a family-friendly dining zone with play areas for children and a specific zone for on-the-go customers looking for a quick recharge. IKEAs in the US, however, will soon offer an additional, more relaxed dining space IKEA calls “Fika”, a traditional Swedish concept that simply means “coffee break”, which will serve as an outlet for customers that may indeed come solely for the food.”
Simply put grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food drives sales. Is your retail outlet focusing in on the opportunity for customers in search of new approach to eating out? Are you looking a customer ahead? Looking for a new approach to buying Ready-2-Eat of Heat-N-Eat fresh prepared food?
Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard. For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for. Since 1991 www.FoodserviceSolutions.us of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869