At
the intersection of ‘better for you food’ and fresh prepared food, Steven
Johnson Grocerant Guru® at
Tacoma, WA based Foodservice Solutions® believe CVS
Pharmacy can find incremental customer relevance. One trend that's
impossible to ignore is the rise of ready-to-eat and heat-n-eat fresh prepared
foods. This "grocerant" niche is rapidly growing, and it's time for CVS to take a bite out of this lucrative
market.
The
Current State of CVS
CVS
Pharmacy, the retail division of CVS Health,
recently launched Well Market, a new store brand consumables line offering
snacks, beverages, and groceries. This line brings 40 items to the shelves of
CVS Pharmacy stores across the country and online. The products range from
flavor-infused sprouted almonds to probiotic-boosted popcorn. Most items in the
Well Market line are priced between $2.99 to $8.99.
While
this is a commendable step towards expanding their food and beverage portfolio,
CVS is missing out on a significant trend in retail food: the grocerant niche
of fresh prepared food.
The
Grocerant Opportunity
The
grocerant trend, a blend of grocery and restaurant, involves supermarkets
offering fresh,Ready-2-Eat, and Heat-N-Eat meals and meal components. This
trend caters to the busy consumer who is looking for convenience without
compromising on health or taste.
By
incorporating fresh prepared foods into their offerings, CVS could drive
top-line growth and bottom-line profits. Here's how:
Catering
to Consumer Preferences
Consumers
today are increasingly seeking out fresh, healthy, and convenient food options.
By offering fresh prepared foods, CVS can cater to these preferences and
attract a wider customer base. This could include busy professionals looking
for a quick lunch, families seeking a convenient dinner solution, or
health-conscious individuals wanting nutritious, Ready-2-Eat meals.
Enhancing
the In-Store Experience
Adding
a fresh food section could enhance the in-store experience for customers. It
could transform CVS from a traditional pharmacy into a one-stop-shop for health
and wellness needs. This could increase foot traffic and encourage customers to
spend more time (and money) in the store.
Driving
Profitability
Fresh
prepared foods typically have higher profit margins than packaged foods. By
offering these products, CVS could increase its profitability. Additionally,
offering a unique and appealing range of fresh foods could differentiate CVS
from its competitors, potentially driving customer loyalty and repeat
purchases.
The
Path Forward
To
capitalize on this opportunity, CVS could consider partnering with local chefs
or food suppliers to offer a range of fresh prepared foods. They could also
explore creating an in-store dining area where customers can enjoy their meals.
This could create a more engaging and enjoyable shopping experience, further
driving customer loyalty.
Just
think about this, by embracing the grocerant trend and offering fresh prepared
foods, CVS has the potential to drive significant growth and profitability.
It's an opportunity that's too good to pass up.
Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook, LinkedIn, or Twitter
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