Is
half a grocerant enough or too much when a retailer needs to please customers
yet drive both top line sales and bottom line profits? Foodservice Solutions® Grocerant Guru®
stated that “many legacy food retailers error on one side of the other. Either too much space allocated to grocerant
niche Ready-2-Eat and Heat-N-Eat fresh food or too much space for legacy CPG
products, resulting in a profit disparity.”
Bob
Mariano, president and CEO of the Mariano’s grocery store chain's parent
company, Roundy's Supermarkets stated when speaking about their newest store
“It's half grocery store, half restaurant -- or a "grocerant,". Mariano’s appears to be trying to copy
industry grocerant niche leader Wegmans creating a “Mariano’s
experience”
ala the ‘Wegmans lifestyle store’.
The
new Mariano's has an “oyster bar and a wine bar. Bread sliced fresh to order.
Sushi and barbecue restaurants and a coffee and gelato shop -- all in-house. A
salad bar, hot bar, rotisserie station, soup station and pastry shop -- not to
mention aisles of typical grocery store staples.”
Foodservice
Solutions® Grocerant Guru® wondering out loud
the other day asked “Can Mariano’s drive top line sales and bottom line profits
trying to be both a grocerant and legacy grocery retailer allocating space 50%
to 50%?” He answered his own question
stating ‘No not today, maybe someday’. Why,
retail today is about meals, meal periods, customization, and mix and match
family meal personalization.
Our
Grocerant Guru® went on to explain that today at noon consumers are just beginning to think about what's for dinner. In
fact 83.7% of American consumers are unsure about what's for dinner at noon. At
4:00 PM 68.7% still don’t know what’s for dinner (Walgreens-Foodservice
Solutions). In
2012 38% of meals were eaten alone 2015 42% are eaten alone (Hartman) 2016 54%
eaten with others 46% alone (Hartman).
This year 53% of Dinners are planned within 1 Hour of Eating (Hartman
Group 2016).
In
retail foodservice the price, value,
service equilibrium is resetting. In order to drive top line sales
and bottom line profits fresh food retailers need to fully understand the
undercurrents of consumer’s purchases by Share
of Stomach.
Unfortunately
most retailers today understand consumer purchases by the sector that they
specialize in only. Thus, they error
experimenting much on the grocerant side, or experimenting too much on legacy
CPG side creating a void in profitable growth. Are you looking for
profitability, or retail equilibrium?
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
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