While
Amazon garners attention in the press with the rollout of online grocery
ordering in LA and continued testing of Amazon Spotlight. The share of market
within grocery Amazon is after is in fact inconsequential to legacy food
retailers looking to win the hearts and minds of consumers today and 10 years
from now.
Florida
is ground zero in the batter of share of stomach. The consumer is looking for
fresh prepared ready-2-eat and heat-N-eat meal options. Amazon can garner
online business because their strategy is to find a last mile solution grocery
deliver akin to the milkman will provide them that.
If
success leaves clues, evolving with the consumer is one of them. The consumer continues to migrate to the
ready-2-eat and heat-eat space. There is
no sign that the rate of migration will slow.
Publix and Wal-Mart are swapping ad’s at each other in an attempt
to garner market share from one another all the while Wawa, Thornton’s and
RaceTrac are expanding into the state and Wawa has committed $574+ millions for
new units alone. 7 Eleven has refocused
it eye’s on Northeast Florida buying units or opening new ones. All while Florida
restaurant sales are flat or slipping and grocerant fresh prepared ready-2-eat
and heat-N-eat food is one reason. Publix, Whole Foods, Bi-Lo, Wawa, 7Eleven,
Walmart, and Racetrac are all selling fresh prepared food.
The United States Census reports that 50% of adults over the age
of 18 are single. Can anyone be surprised by the developments in the retail
food space? Nielsen reports that in 2013 there are more convenience stores in
the United States than the number of drugstores, supermarkets and dollar stores
combined.
Convenience stores
account for 34.8 percent of all retail outlets in the United States. The
average shopper who enters the store is in and out in 3 minutes, 33 seconds. Wawa
does not sell beer in any of their northeast locations and less than half of
the northeast locations offer gas. Wawa
has built its reputation selling fresh prepared food. 7 Eleven currently is
opening about 50% of its new locations within the United States without
gas. Food and fresh “better for you”
food is the driving force for 7 Elevens growth.
With Walgreens
entering the fresh food market place Floridians will have another outlet to
find fresh prepared meal components.
Restaurant industry executives will need to adjust menu and marketing
messaging in order to maintain market share.
Interested
in learning how the 5P’s of Food Marketing can edify your retail food brand
while creating a platform for consumer convenient meal participation, differentiation
and individualization contact us via Email us at: grocerant@q.com or visit
Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or
twitter.com/grocerant
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