Thursday, September 30, 2010

Urban vs. Rural food retailing is hogwash. It about fresh, fast and convenience!


Wal-Mart and Target each came out this week and restated that they were going to open new units in urban areas that have a smaller format. Let’s cut to the chase, research shows the center of the store is dead! Consumer are focused on prepared food, fresh prepared with fast service.

Try as they might category managers have only delayed the inevitable they have not been able to prevent it. Look how well category managers have done with A & P. Companies that have relied on slotting fees as a solution for profits simply have lost sight of reality. Super Target are going to have “wider aisles” and we all know why; they have too much stuff and the consumer simply walks by it!

Target’s will “increased fresh food selection is designed to make fill-in shopping "quick and easy for guest’s on-the-go." Each store offers a selection of national food brands and Target private-label brands.” Wal-Mart understands the same thing. It’s not about the cost of the land, it is about the consumer. I am glad to see that each of these successful retailers is listening.

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 http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson

No comments:

Post a Comment