At the intersection of “better for you” fresh prepared food
and the time starved consumer we are finding an urban battle for share of
stomach by two of the best retailers in the US.
Trader Joe’s has the highest sales per square foot of any retailer that
sells food. While Walgreens is quickly
moving from legacy CPG shelf stable food products into ready-2-eat and
heat-N-eat fresh prepared food.
Trader Joe’s has more fresh prepared heat-N-eat food that is
portioned for one or two than Walgreens.
Urban dwellers can utilize Trader Joe’s for the vast majority of their
monthly food shopping. Walgreens can
fill the lunch and dinner need set with more ready-2-eat food. Walgreens has a full and growing complement
of ready-2-eat food and growing number of meal components that can be bundled
into a family meal or eaten as an single entrée.
The food landscape is evolving rapidly with many legacy
retailers entering the fresh prepared ready-2-eat food niche. Walgreens is but one successful example. These companies’ strategy and success are
disruptive to other traditional food retailers including casual restaurant
chains, grocery stores, and full service restaurants.
To date the only restaurant chain to introduce self-branded
CPG packaged goods into its units that are “better for you” is Starbucks. The
Seattle based retailer understands the consumer is dynamic not static and that
as a food and beverage retailer it must move with the consumer for continued
success. Watch Starbucks for continued
branded food success. Will your company
be disrupted or disrupting?
Outside eyes can
deliver top line sales and bottom line profits.
Invite Foodservice
Solutions® to complete a grocerant program assessment, brand, product placement
or positioning assistance. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global
leader in the Grocerant niche visit Facebook.com/Steven Johnson,
Linkedin.com/in/grocerant or twitter.com/grocerant.
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