Grocerant Guru’s Suggest that Consumers Going Grocery Shopping Beware

 

Today while inflation is top-of-mind for most consumers when they go grocery shopping.  It’s at the intersection of product price and packaging that Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® believes consumers should be reminded of the phrase Caveat Emptor.  

In short, caveat emptor is a Latin phrase that translates to "let the buyer beware." In the context of grocery shopping, it means that the buyer has the responsibility to inspect and research a product before purchasing it, as the seller may not be held liable for any issues with the product later.

It's essentially the opposite of "buyer beware" – the onus is on the customer to be informed.

Caveat emptor is a principle that's less common today than it used to be, especially with regards to consumer goods. Many countries and regions have laws in place that offer consumer protections and hold sellers more accountable for the quality and condition of their products.

Many consumers today are going to the grocery stores finding higher prices and smaller packaging. This practice of keeping prices the same but reducing the amount of product in the package is called "shrinkflation." Here are some ways consumers can be aware of shrinkflation:

·         Pay attention to unit pricing: Most grocery stores will show a price per unit (ounce, gram, etc.) on the shelf tag in smaller print below the headline price. This allows you to compare products directly and see which offers the most for your money.

·         Track package sizes of your favorite items: Become familiar with the weight or volume of the products you typically buy. If you notice a decrease in size but the price stays the same, you're likely a victim of shrinkflation.

·         Compare brands and sizes: Don't just grab your usual item on autopilot. Take a moment to compare different brands and sizes to see which offers the best value per unit.

·         Stay informed: There are resources online and even social media communities dedicated to tracking shrinkflation. A quick search for "shrinkflation" can turn up news articles and forums where consumers share their experiences.

By being aware of shrinkflation and using these tips, you can be a more informed shopper and get the most for your grocery budget. France had some new laws to help keep consumers aware of shrinking packaging size and equal or greater pricing of products.

Here are five reasons why the US might consider adopting regulations similar to France's on shrinking packaging (shrinkflation):

1.       Increased Transparency for Consumers: Just like the French law, US regulations could require clear labeling on products that have undergone size reduction without a price drop. This would allow consumers to make informed decisions about their purchases, comparing price per unit instead of just the headline price.

2.       Combatting Deceptive Practices: Shrinkflation can be seen as a deceptive practice, since the packaging size suggests a similar quantity of product. Regulations could help ensure that consumers aren't misled about how much they're getting for their money.

3.       Curbing Inflation's Hidden Costs: While companies may resort to shrinkflation to avoid raising prices explicitly, it still contributes to inflation by reducing the value consumers receive. Regulations could help mitigate this hidden aspect of inflation.

4.       Encouraging Fair Pricing: With clear information about size reduction, competition could be fairer. If consumers become more aware of shrinkflation, companies might be less likely to resort to it as a hidden price increase, potentially leading to more accurate pricing practices.

5.       Potential for Broader Action: The French example focuses on shrinkflation, but the article also mentions "cheapflation" (reducing quality without lowering price). US regulations could potentially address both issues, promoting transparency and fairer pricing practices.

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

The Grocery Store Perimeter is Simply Old School

Let’s just cut to the chase the perimeter of most legacy grocery stores look, more like yesterday or should we say more like 30 years ago than they should.  Why we ask?  Ok some new display cases and new lighting but the notion that consumers today want to spend all day filling a basket walking around a store is simply Ludacris. 

Foodservice Solutions® Grocerant Guru®, Steven Johnson stated “for 20+ years legacy grocery stores have been acutely aware that consumers dislike going to the grocery store and spending 20 minutes just to pick up one or two items.” Consumers have options and saving time is at the top of most consumers shopping list according to Johnson.

What’s even worse most legacy grocery stores continue to utilize category managers whose sole job it is to ‘trick, fool, or confuse’ consumers into buying one product over the other depending of the profitability of the product.  News alert consumers have figured that out.  It is just another reason that consumers are migrating to new forms of fresh food distribution while avoiding legacy grocery stores according to Johnson. 

E-grocery sales are expected to swell from 11.2% of the overall U.S. grocery market in 2022 to a 13.6% share in 2027, according to the 2023 Brick Meets Click/Mercatus 5-Year Grocery Sales Forecast, released last Monday. The estimate reckons an 11.7% compound annual growth rate (CAGR) for online grocery sales during the five-year period.

While that number is still small considering the size of the marketplace.  It is important to remember that the convenience store sector is growing at roughly 3% in new stores per year and c-stores have 3.5 times as many stores as there are grocery stores.

David Bishop, partner with Brick Meets Click, noted in a previous release “Increasing the number of households who have access to online grocery shopping services with home delivery or pickup could add almost two points to the percentage of U.S. households who buy groceries online.” The simple fact is consumers simply dislike spending so much time in a grocery store and then they still have to go home cook, and do dishes. 

Consumers want grocerant niche Ready-2-Eat and Heat-N-Eat fresh food. It saves them time and in most cased there are no dishes to do.  If you are a food retailer and your year over year customer counts are not going up its time to edify your grocerant niche Ready-2-Eat and Heat-N-Eat fresh food platform. Grocerant niche meals and meal components do not belong in the perimeter of your store.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how www.FoodserviceSolutions.us 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:  www.FoodserviceSolutions.us for more information. 

Is your Grocery Store Out of Touch

Fast food restaurants continue to garner incremental customers and today account for 80.7% of all restaurant visits in the United States according to The NPD Group. Why? it’s simple 50% of Americans over the age of 18 are single according the US Census.  Fast food is fast and grocery stores are slow and that according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

In a new study from Phononic titled “The Store of the Future” found “Americans, who shop at traditional grocery stores 3.9 times each month, have some very definite opinions about how the outlets could improve. And a more convenient shopping experience heads the list.” Let see what else they found:.

1.       Eighty-nine percent of Americans (89%) reported they want to shop in a grocery store that understands how to make buying an easier/more efficient experience.

2.        Eighty-five percent said grocery stores should make it easier to find merchandise.

3.       50% of consumers said supermarkets haven’t figured out how to use technology like other retailers.

4.       More than half (56%) said if grocers don’t enter the modern age, people will look for other ways to get their food.

5.       More than three-quarters (79%) of consumers said they should consider smart technology in a refrigerated unit to find recipes, or the right pairings for cheese and other foods.

6.       Over nine in 10 consumers feel it’s important that the layout of the store makes it easy to find merchandise,

7.       85% believe grocers should be making it easier to find items.

8.       68% of shoppers said if grocery stores had new products at checkout, they would be more likely to try them. Meanwhile, 59% said they would like to see healthier options,

9.       46% said there should be more frozen or refrigerated options at checkout, with ice cream and wine and beer heading the list.

Regular readers of this blog know that consumers are looking for meals, meal solutions, they don’t want to shop, they don’t want to cook, and they don’t want to do dishes. So when 50% of consumers over the age of 18 are single it would indicate that food dollars will continue to migrate from grocery stores to fast food restaurants for some time unless grocers change their ways.

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