Friday, December 18, 2009

2010 Who will make food shoppers happy?

Studied to death yet still stuck in the middle Grocery stores continue to try to please the consumer. Benefiting for a weak economy sales are up at most grocery retailers. What is most notable however is that the grocery stores with a focus on “lifestyle” or prepared and fresh food are doing better than traditional units. What is also interesting is sales of the ‘lifestyle items are down” and sales of prepared food are off according to a recent study by Technomic, yet the repositioned units are performing well. In a recent study of consumers conducted by The Nielsen Co. found half (53 percent) indicated they "really enjoy" or "like" the activity (grocery shopping). After years of in-depth study the grocery industry is slow to change and consumer’s problems with the grocery sector remain largely that same as 15 years ago.

Suffering during the economic down turn is the restaurant industry which is capitulating share of stomach to the grocery industry unwillingly. 2010 just may be the swing back for the restaurant industry. In recent phone conversation I have heard of new and exciting Limited Time Offers (LTO’s) and services from several CMO’s of restaurant chains. Speed and service are a meal time advantage for most restaurateurs. McDonalds January rollout of five $ 1.00 breakfast items places price and convenience on top of that list as well. 2010 will be a competitive food year.

Convenience stores are ramping up the competition as well entering the grocerant prepared ready-to-eat and ready-to-heat food mix with alarming speed. The largest player is 7 Eleven and they have never been afraid to utilize price as a competitive advantage. Utilizing the global strength of their 38,000 stores purchasing power goes a long way.

Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche. View my complete profile at: or leave a comment or question below.

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