Most legacy grocery retailers are working under the assumption that five years from now 78% of their retail sales will come from grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food according to Tacoma, WA based Foodservice Solutions® Grocerant Guru®, Steven Johnson.
Back in the day supermarkets had one but wall of produce, small bakery, a deli counter, while the main focus was CPG products from Kraft, Campbell’s, Hines, and Procter & Gamble. You know the ‘pantry’ staples that were boxed, canned, and bottled products that last forever and your grandmother had used before you mother did. Technology, improved supply chain and the ‘halo’ of ‘Better-for-You’ food information has changed all that according to Johnson.
Even the famed Wall Street Journal reports “that a number of supermarkets and other food-selling retailers, like CVS, have redesigned or created new stores with less space for pre-packaged foods and more square-footage given over to in-store restaurants and freshly prepared meals.”
Companies the ilk of Dollar General are testing fresh food, Ikea is selling fresh food. Both ShopRite and CVS, have stated that they are creating new stores that have cut down on the space for pre-packaged foods and more area for in-store restaurants and fresh prepared meals according to the Wall Street Journal. Here let look at some numbers:
1. The sales volume for pre-packaged food and beverages fell 0.4% in the first quarter of 2017, the WSJ reports, citing a Nielsen report.
2. Fresh meat sales grew 1.7%
3. Produce grew 1.9%,
4. Deli-prepared foods increased 4%.
Success does leave clues and it just might be time for you to invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®. 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