Legacy Grocer Store Relevance Continues to Decline

 

When a key food sector funded research project study shows a continued decline in key demographic customer loyalty one thing is obvious.  That is, usually things are much worse that then report found according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

So, currently supermarkets remain the go-to retail venue for fresh produce, but their pull is weaker among younger shoppers, according to the Food Marketing Institute’s  “The Power of Produce” study.

What other avenues of distribution are consumers migrating? Well, according to Johnson grocerant niche restaurants, dollar stores, and grocerant niche convenience stores.

Shockingly that report found that only 50% of all shoppers cited a full-service supermarket as their primary store for purchasing fresh produce. Wow, have things changed since I was a kid.  All that said FMI’s report gives traditional grocery stores a leg up on other retail formats, given that 55% of grocery trips include fresh produce. Ok, you know what I’ am going to say now.  We told you so! Yes, Grocerant niche fresh food sales continue to drive customer migration.

Here is where the FMI study edified what we have been saying for 1 years.  They found that the younger generation exhibits a greater affinity for buying fresh fruit and/or vegetables at supercenters and alternative retail channels, including online, dollar stores, convenience stores and farmers’ markets. Of consumers polled, just 34% of older Millennials named a supermarket as their primary store for produce.

 Rick Stein, vice president of fresh foods at FMI, said in a statement. “Specifically, the study suggests a need for a renewed focus on strategies for continued growth, including organic, locally grown produce; value-added produce for time-starved customers; produce-based beverages and private branded produce.” What he meant to say is you DONING WHAT YOU HAVE ALWAYS DONE AND DOING THE SAME WAY WILL NO LONGER WORK.

Here is some information from the study all food retailers will find useful.

1.  “Fresh fruit and vegetables also show potential to fit into more eating occasions. Although 36% of consumers polled said they eat fresh produce about three times a week or less, they would like to include it more frequently in meals or snacks, FMI found.
2. 56% of shoppers buy veggie shakes or fruit smoothies, and 53% buy cold-press juices. Those figures don’t include similar beverages people make at home or purchase from other areas of the store, such as kombucha.
3. Nordstroms, Ikea are both now selling fresh foods fast. 

Are you offering more fresh fruit and produce to your consumers as a Hand-Held Food for immediate consumption options?  If not Why? 

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant Niche.

Food Retailers Evolving with and Accommodating EV’s is a Must

 

What is brand relevance when it comes to Electric Vehicles (EV’s)? Has your brand extended an invitation to drives of EV’s? If you have not yet, you had better start planning for your customers next steps.  EV’s are going to be relevant to over 26 million consumers by 2030. 

Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes if your brand is not evolving with relevance it is dying. It’s important that you at least begin the process of looking a customer ahead.

In a report from The Edison Electric Institute (EEI), Electric Vehicle Sales and the Charging Infrastructure Required Through 2030 report was updated creating a consensus forecast now which is based on four independent forecasts done by Boston Consulting Group, Deloitte, Guidehouse, and Wood Mackenzie, as well as analysis from the National Renewable Energy Lab. The report concludes that:

·         The number of EVs on U.S. roads is projected to reach 26.4 million in 2030, up from the projected 18.7 million as projected in the 2018 report.

·         The projected 26.4 million EVs will make up nearly 10 percent of the 259 million light-duty vehicles (cars and light trucks) expected to be on U.S. roads in 2030.

·         Annual sales of EVs will be nearly 5.6 million in 2030, reaching more than 32 percent of annual light-duty vehicle sales in 2030. Compared to the 2018 forecast, this is an increase of more than 1.8 million in annual sales in 2030.

·         Nearly 12.9 million charge ports will be needed to support the projected 26.4 million EVs that will be on U.S. roads in 2030.

·         Approximately 140,000 Direct Current (DC) fast charging ports will be needed to support the level of EVs expected to be on U.S. roads in 2030.

Drivers of these cars are you customers. Now then; Trileaf Corporation, a leading Architectural and Engineering firm, announced that it is exploring the possibility of combining electric vehicle (EV) charging stations with pizza restaurants in a new marketing push that it believes could be a win for both industries.

So, Trileaf is offering free EV Charging Station Branding and Design Studies to pizza franchises to help them evaluate the benefits of electric vehicles for their business and local community. Trileaf's innovative design solutions and extensive expertise in property development make it well-equipped to support pizza franchises looking to add EV charging stations to their locations.

Roger Zimmer, Trileaf's Senior Structural Engineering Manager, stated, "We see this as a winning formula that benefits everyone," …. "EV drivers need more charging options, and pizza restaurants are always looking for new ways to attract customers, and often manage a fleet of delivery vehicles. By bringing these two industries together, we can create a unique and innovative offering that meets the needs of both."

In case you did not know, Trileaf has extensive expertise in creating comprehensive plans and providing exceptional project management for property development. The company offers site assessment and documentation services, helping clients identify existing property conditions and deficiencies for proposed renovations. Trileaf's team of experts conducts thorough due diligence on potential properties, examining factors such as permitting and zoning regulations, environmental concerns, and customer goals. With these capabilities, Trileaf is well-equipped to support the typical EV charging/pizza restaurant combination project and help bring it to fruition.

Don’t get left behind. Trileaf is currently engaging several major pizza chains about the possibility of adding EV charging stations to their locations. Trileaf believes that this could help pizza restaurants differentiate themselves from their competitors and attract a new, environmentally conscious customer base.

Zimmer continued, "We're excited about the potential of combining the convenience of EV charging with the popularity of pizza to create a new market that benefits both industries".

Success does leave clues, as Trileaf has a history of success in developing unique and profitable properties and has recently provided EV Charging Station solutions for multiple airport locations. With a solid reputation for providing exceptional design solutions for hundreds of property locations with nationwide coverage, the company believes that the EV charging/pizza restaurant combination could be its most exciting project yet.

"We're always looking for new opportunities to create value for our customers and our communities," adds Zimmer. "We believe that this new venture has the potential to do just that."

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

In a Battle for Share of Stomach

EV's Matter

7-Eleven’s New EV Charging Elevates EV’s Relevance

 

Brand messaging coming from 7-Eleven is clear.  7-Eleven is looking a customer ahead and letting everyone know that if you drive an Electric Vehicle (EV) you are welcome at 7-Eeleven. There is no doubt that once again the cost of gasoline is on the rise and EV’s are top of mind.

EV are good for the environment according to many and that is part of the halo of ‘better-4-you’ products grocerant niche consumers consider important according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Let’s take a look:

 

1.       Our new 2021 Grocerant ScoreCards found 82.3% of consumers don’t know what’s for dinner at Noon, and 61.1 don’t know what’ s for dinner at 4PM %.

2.       83.1% all dinners have at least 1 grocerant niche Ready-2-Eat and Heat-N-Eat meal component and 68.4% have two meal components.

3.       When asked if they wanted to cook dinner from scratch or assemble dinner from fresh meal components 90.4 % of Gen Z chose assemble from Fresh Prepared Meal Components and Millennials 82.7% chose meal components.

4.       Seventy-three percent of retail prepared food purchases are taken to go

5.       Prepared food purchases are frequently a planned purchase among 59% of shoppers, while 41% of shoppers said they buy prepared foods on impulse. Dinner has the highest amount of prepared food buys with 79% of respondents making purchases for that meal, while lunch comes in at 77% and breakfast at 62%.

6.       55% of consumers would like to try autonomous EV delivery

7‑Eleven latest initiative calls for installing at least 500 Direct Current Fast Charging (DCFC) ports at 250 select convenience stores in the United States and Canada by the end of 2022. Ok we know that not autonomous, but its an consumer touchpoint that can’t be over look and &-Eleven knows that.

7‑Eleven President and CEO Joe DePinto, stated "7‑Eleven has always been a leader in new ideas and technology to better serve the needs of our customers," "Adding 500 charging ports at 250 7‑Eleven stores will make EV charging more convenient and help accelerate broader adoption of EVs and alternative fuels. We are committed to the communities we serve and to working toward a more sustainable future."

Yet, there is more under the halo of better-4-you as 7-Eleven pledged recently to meet a 50-percent reduction of carbon emissions by 2030. The pledge more than doubles 7-Eleven's 2016 goal to achieve a 20-percent reduction of carbon emissions from its stores by 2027. 7‑Eleven reached that reduction goal in 2019, eight years ahead of schedule.

7-Eleven is improving sustainability by seeking renewable energy solutions for its stores across the country. Initiatives include:

a.        Purchasing 100-percent wind energy for 800-plus Texas stores and 300-plus Illinois stores;

b.        Using hydropower at 150 stores in Virginia;

c.        Using solar energy to power 300 stores in Florida.

DePinto, continued "7‑Eleven's legacy is bringing convenience to the customer, and that continues to evolve — from ice on a dock in 1927 to electricity for your car today. "7‑Eleven's rapid expansion of EV charging ports across the country is good for our customers and our planet and it's the right thing to do."

7‑Eleven operates, franchises and/or licenses more than 77,175 stores in 16 countries and regions, including 16,000 in North America. We think they are doing something right and this is one of them.

For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869

Will Walmart’s New Electricity be All-Electric Self-Driving Cars

 

Chain restaurants have focused extensively on the ‘halo’ of better for you in 2021 with everything from fresher food to sustainable packaging. Grocery stores are not going to miss out on one of consumers top of mind trends in 2021 either according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Walmart in a new partnership with Cruise will bring fleet of 100% renewable-energy vehicles to Scottsdale, AZ beginning in 2021.  While the U.S. is reentering the Paris Agreement within the United Nation’s Framework Convention on Climate Change, Walmart will launch a pilot in Scottsdale, Ariz., with self-driving car company Cruise to operate an entire fleet of all-electric delivery vehicles powered with 100% renewable energy. The project will support the retail giant’s initiative to reach zero emissions by 2040.

So, as part of the pilot, customers can place an order from their local store and have it delivered, contact-free, via one of Cruise’s all-electric self-driving cars. Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as; corporate partnerships, fresh foods, online ordering, delivery, self-driving cars, plant based foods, sampling, toy’s, cereal, developing brands,  grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

 

Walmart's Relevance 

Tom Ward, senior vice president of customer product, Walmart U.S.  stated “Technology that has the potential to not only save customers time and money but also is helpful to the planet is technology we want to learn more about,”.

Ward continued, “This year, we’ve had our foot on the accelerator expanding our pickup and delivery services, so customers can get the items they need quickly and safely,” he continued. “In April alone, we launched Express Delivery and have since scaled it to more than 2,800 stores, reaching more than 65% of American households.”

In case you did not know this pilot is focused on renewable energy, it is not Walmart’s first foray into self-driving delivery vehicles. Earlier this year, the retailer tested the unmanned Nuro R2 delivery vehicle — which only hauls products and has no onboard driver or passengers — in Houston, as well as autonomous Toyota Priuses to bring Walmart online grocery orders to customers’ homes. Both vehicles are powered by Nuro’s self-driving software and hardware.

“You’ve seen us test drive with self-driving cars in the past,” Ward said, “and we’re continuing to learn a lot about how they can shape the future of retail. We’re excited to add Cruise to our lineup of autonomous vehicle pilots as we continue to chart a whole new roadmap for retail.”

The world is evolving fast and Walmart is as well, in addition to electrifying and zeroing out emissions from all of its vehicles, that does including long-haul trucks, by 2040, Walmart, with over 11,500 stores worldwide, is building on its long-standing commitment to climate action by also harvesting enough wind, solar and other renewable energy sources to power its facilities with 100% renewable energy by 2035, and transitioning to low-impact refrigerants for cooling and electrified equipment for heating in its stores, clubs and data and distribution centers by 2040. How are you going to extend the ‘halo’ of better for you in 2021?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter