Monday, August 25, 2014

Legacy CPG Retailers Converting Floor Space

Convert floor space from legacy CPG to fresh food or capitulate customers. Is the mantra many legacy CPG retailers are hearing today from consultants the ilk of Foodservice Solutions® Grocerant Guru™.  More and more space is being allocated to fresh prepared Ready-2-Eat and Heat-N-Eat fresh food, that’s Grocerant niche success space.

Today large full service restaurants are increasing meal component offering in Buy one Get one To-Go and QSR’s are focusing on price, speed and new menu offerings of bundled meal components to garner additional meals from CPG retailers.
A RetailNet Group recent study found that retailers should be “adding ‘grocer-ants, expanding  to go foods, merchandising more fresh prepared food and less center store while appealing to an ever expanding global palate.” Those are just a few of growth platforms identified by RetailNet Group for legacy big box retailers to maintain profitability and customers.

Meal Component Bundling

Grocerant Ready-2-Eat and Heat-N-Eat fresh prepared food is causing significant product mix shifts from legacy CPG products to fresh prepared food due increasing customer demand according to Foodservice Solutions® Grocerant Guru™. Today legacy CPG retailers are faced with the need to reallocate the space, often replacing it with new services and fresh food experiences that will bring in new traffic to the store. For many legacy big box retailers, adding grocerant fresh prepared food is a good solution to provide a differentiated experience, drive traffic and compete with QSR’s, limited service, and full service restaurants.

Deferral Cooking

Consumers do not want to cook from scratch.  Today, a home cooked meal is comprised of bundled meal components.  One key driver is a lack of a multi-ethnic cooking skill-set, combined with time-starved consumers need for convenience, are causing retailers to add or expand prepared To-Go foods departments, add inside seating options, and offering additional Heat-N-Eat options. The undercurrents of disruption is found in customer migration.  Driven by migration from scratch cooking too fresh prepared meal components, and too To-Go foods options that all fall under the umbrella of the grocerant niche.

Proximity Shoppers Drives Convenience Store Fresh Food

Since 1991 the number one reoccurring complaint about grocery shopping has been how much time it took. Convenience stores with a small foot print figured that out.  Then they discovered coffee, fresh coffee and fresh food. The Retail Net Group found “factors such as urbanization, an aging population and an increased preference for proximity are driving a fundamentally new convenience store. There will be new multi-destination convenience superstores that will aim to roll up independents and compete directly with QSR. As such, the convenience competitive set is broadening.”

Sheetz, Wawa, Rutter’s and 7 Eleven are all expanding driven by fresh prepared food, meal components, a proximity to customers that elevates a personal relationship through high frequency coffee trips, differentiated fresh food, and price, too compete with QSR’s.

The retail food space is not brain surgery it is evolving more rapidly today than it has in the past 20 years.  Fundamentally the retail food space remains very much the same, consumers are in control. Have you hear of Uber?  Uber is delivering fresh food is a much smaller space than you occupy.  Is your company suffering from footprint malaise? Are you doing what you have always done?  Doing it the same way?  Why?

Invite Foodservice Solutions® to complete a Migration Marketing assessment, grocerant program assessment. For brand, product placement, menu positioning assistance simply call 253-759-7869 or visit

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