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.
Post a Comment