What a conundrum for legacy grocery stores that
are run by aging baby boomers do what worked for decades or evolve with today’s
consumers. Gone are they days grocers
could just sit back collect slotting fees for stocking the shelves with
products food manufactures wanted them to sell for little or no profit. Living off slotting fees is a thing of the
past according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
Today consumers have elevated fresh food choices. There are now 29 restaurants for every traditional
grocery store in the United States and most offer meals and meal components for
takeout and delivery extending their brand’s reach directly into the home according
to Johnson.
Back in the day stacking the shelves high and
selling at velocity was all grocery stores had to do to find success. Consumers no long want to cook from scratch
they want Ready-2-Eat and Heat-N-Eat fresh prepared food, and they want it
fast.
Like it
or not the grocery store business has to change and that change must be driving
by leaders willing to focus more on the present, and future than the past. Sales of many legacy CPG shelf stable products
continue to slip as consumers migrate to grocerant niche fresh prepared food
for immediate consumption.
The fact is fresh and perishable foods generated at
grocery stores sales of more than $177 billion in the latest year according to Nielsen. That’s nearly 14 times as
high as all food and beverage sales online this year. Across the FMCG
brick-and-mortar landscape, fresh categories have driven nearly 49% of all
dollar growth this year. Furthermore, many fresh ingredients have been the
starting point for category reinvigoration across both packaged food and
non-food items. When so many retailers are struggling to get people in store,
it’s no surprise that many are placing a heavier emphasis on fresh categories
throughout the perimeter. Today, fresh categories are an invaluable source of
growth within the four walls of your in-store environment according to Nielsen.
So are you still looking for slotting fees? Why?
Cook it fresh sell it
fast. 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
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