Wednesday, June 30, 2010

It's time to drop legacy Grocery store metrics.

Many legacy supermarket and grocery stores industry executives study sales numbers, customer visit, basket size, in addition to listening and working directly with category managers, national brand product managers. Then they fall back into the trap of demanding slotting fee’s for product shelf space too garner profit. Why not focus on demand driven sales and profits? It’s time to drop the legacy industry metrics.

Trader Joe’s is an example of a new refined smaller footprint with a focus on customers and customer choice. They do not sell packages of 30 pork chops. The Trader Joe’s C-level executives studied the same research information as the legacy supermarket and grocery store executives did and understood that the customer wanted smaller portions, fresh prepared flavorful meal options and the ability to get in and out quickly, thus the small footprint. Fresh & Easy has done the same thing, now they are seeing results and adding one new unit a week. Success does leave clues and those whom react to the clues best win.

However there are companies like the new Freshco which debuted last month at eight former Price Chopper sites, the new brand at legacy locations may only see short term results. The stores maintain competitive pricing of Price Chopper with a keen focus on fresh produce, local and international offerings set in a “controlled flow” format that leads shoppers through the entire store department by department. In consumer talk that means ignoring consumer wishes to get in and out fast! In today’s world implementing against legacy metrics may become the sure fine way to fad away.

Grocerant Ready-2-Eat and Heat-N-Eat fresh prepared food is garnering the attention of consumer. This niche is filled with better for you products that are portioned, priced and portable in ways that legacy operators have yet to understand.

Outside eyes can deliver top line insights and bottom line profits. Invite  to conduct a grocerant program assessment or a Grocerant Scorecard. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven Johnson and Foodservice Solutions visit or on Facebook at Steven Johnson Contact:

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