Tuesday, May 11, 2010

Grab & Go prepared food competition intensities; Grocery stores, C-stores and restaurants fight for customers.

“The future has already arrived; it’s just not evenly distributed.” Too quote William Gibson If you have been waiting to see what’s next? If so you might have just missed the bus. National food retailers risk being marginalized by new concepts with smaller footprints, lower cost of goods and faster service all will a local authentic flare.

Understanding the new retail food service dynamics in the industry and reacting properly will accelerate your growth. While other national chains will close more lack luster stores; pontificate on repositioning and capitulate marketshare for years to come.

Here is what we understand; consumer discontinuity in food retailing began in 2005 and continues. New points of distribution are growing, becoming smaller in size and worked out many of there problems.

Fresh & Easy for example reports last quarter sales is again opening new units with more SKU’s not less. They have continued to focus on ready-to-eat and ready-to-heat food portioned for one or two people. Trader Joe’s ready-to-eat and ready-to-heat food positioned in the consumer friendly Mix & Match combo continues to garner favor with consumers. Walgreens is building the prepared fresh food arena in unban locations with high quality grocerant style fresh prepared meals portioned for one or two and fresh coffee. Now CVS is selling fresh prepared food in select locations.

“The future has already arrived; it’s just not evenly distributed.” A quote made famous by William Gibson sure comes to mind don’t you think. The big retail companies are jumping in head first and food manufactures are simple thrilled that they have. The grocerant niche continues to boom and the consumer looks to be the beneficiary with new point of distribution and competitive pricing.

Foodservice Solutions specializes in outsourced business development; we can help you identify, quantify and qualify additional food retail segment opportunities and brand leveraging integration strategy. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson.

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