Success does leave clues and
the team at Foodservice Solutions® continually pointed out over the past
several years that empowering consumer choice around grocerant niche Ready-2-Eat and Heat-N-Eat fresh food would garner incremental
customer transactions, larger share of food dollars, and larger share of
stomach.
Today
the consumer continues to evolve and grocerant niche consumers reflect the
undercurrents of evolving consumer demands.
Those demands include a more diversified shopper population, new
non-traditional competitors, and high shopper expectations around freshness,
convenience and transparency. Steven Johnson Foodservice Solutions® Grocerant
Guru® outlined our evolving landscape:
1.
Evolve or Fade Away: Increased completion had elevated the blurring of
retail channels expanding foodservice fragmentation. According to a study by Deloitte, consumers on
average shop at four to five different types of stores to fulfill their grocery
needs. Foodservice Solutions® team has found
increased SKU’s of grocerant fresh food at restaurants, online Meal Kits, drug
stores, dollar stores, supercenters, discount, specialty, convenience, club stores
and Mobile e-commerce ‘home’ stores.
2.
Ethnic Melting Pot: The US
Census
reports the undercurrents of our evolving demographics will continue broaden,
expanding the population of “multicultural consumers.” In fact in a new Nielsen
study found that the “buying power from the Hispanic, Asian and
African-American populations will be 17% of a $4.2 trillion market. The Melting
Pot of opportunity is overflowing with grocerant niche success points according
to the team Looking A Customer
Ahead
at Tacoma, WA based Foodservice Solutions®.
3.
Halo of ‘Better-for-You’: Consumer tell us that grocerant niche Ready-2-Eat
and Heat-N-Eat fresh prepared food is ‘better-for-them’ as the halo includes
not doing dishes or cooking from scratch. Acosta found that “nearly one-third
of shoppers surveyed considered leaving a store if fresh and healthy options
were not available.”
4.
Customization and Personalization: Retailers the ilk of Green Zebra Grocery, EveryTable, and Wegmans continue to attract
loyal customers with convenience, quality, value, and customer service. Customization
and personalization via mix and match meal component bundling are hallmarks of
success found within the grocerant niche according to the Grocerant Guru®. Restaurants continue capitulating
customers as consumers seek fresh food in non-traditional
fresh food retail outlets that are becoming more of a priority.
5.
Price and Private label: Trader Joe’s private label products have the ‘halo
of better-for-you’ according to non-client information aggraded from over 6753
Grocerant ScoreCards. A recent Nielsen/PLMA study, sales of private label
products generated a record $120 billion last year, and continued to outpace
national brands. Trader Joe’s, Aldi, Lidl will continue to increase market
share leveraging price and quality private label foods.
6.
Hand Held Marketing:
Mobile smart phones continue to garner adopting
in fact according Nielsen 85% of Millennials
have a smart phone.
Consumers of all ages continue to embrace digital technology and social media
as a means to connect and communicate about food or when looking for food. A
recent study showed that 37% of shoppers use their mobile devices in store for
comparing prices, searching for product information, or checking product
availability.
7.
Mini Meals at Mini Locations: Rent is expensive and more and more retailers
have no locations or smaller locations virtual dining from a home or local
kitchen is a growing trend. According to a Package Facts study, even the
average square footage of supermarkets has fallen since 2006 and is now
approximately 46,000 sq. ft. Even smaller size formats of 25,000 sq. ft. or
less, modeled by chains like Trader Joe’s, Aldi’s and Lidl, have proven to be
successful.
8.
The Price Value Service Equilibrium is Resetting: Foodservice
Solutions® team identified, quantified and qualified a new formula for the
foodservice Price, Value, Service, Equilibrium. That formula can be found with this link. Consumers are
dynamic not static and food retailers must evolve their brands to both maintain
and garner consumers frequency levels.
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