Wednesday, June 16, 2010

Why is there such a focus on Walmart they do not seem to be the problem in retail food.

The retail food equilibrium is resetting. The new companies are entering food retail with a serious focus including Target, CVS, Sears, Amazon and Walgreens. Targets CEO says adding perishables to its general merchandise has been a BOON! Sears and Amazon are testing fresh food delivery, while CVS and Walgreens are selling fresh prepared food. Walgreens now has 400 Café W’s open.

Legacy Restaurants, Grocery stores, Convenience stores and Drug store chains that utilizing metric’s of success from 20,15 or 10 years ago will not find a formula for success. Retailers that have been complaining about the how “unfair” it is to compete with Walmart can now stop. It’s obvious many others believe that they can and have found a niche they feel they can find success.

Retailers that are side stepping the issue at hand are simply prolonging success. During the past 20 years there are now 25,000 new / additional dollar stores (smaller format) and 10,000 fewer grocery stores? There are now hundred’s of thousand of new restaurants that have opened during the same period of time.

What are the metric’s that important to your consumer is the only question you should be asking. Could it be that consumers prefer fresh prepared food that is perceived “better for you” and portable. This ready-to-eat and ready-to-heat niche is the grocerant niche and it is booming within the, convenience sector, drug store sector and restaurant sector.

Could Fresh & Easy with 159 units open and opening 1 per week all a smaller format of prepared ready-to-eat and ready-to-heat food be the success model other should be looking at? Fresh & Easy success platform is built on: pricing, packaging and portability; it is both fresh and easy! The retail foodservice customer is not static your brand and your company must not either.

Outside eyes can deliver top line insights and bottom line profits. Invite Foodservice Solutions to provide brand and product positioning assistance or a grocerant program assessment. 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 or on Facebook at Steven Johnson

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