In preparation for the upcoming holiday season Safeway,King Kullen, Kroger and Publix have the shelves stacked with family favorites. In fact most legacy grocery stores stock over 40,000 sku’s of legacy CPG food items. There is but one problem the average family only buys 100 different items a year from a grocery stores.
Fact’s aside the holiday season will be great for legacy grocery stores and non-traditional food retailers. Consumers today don’t want to cook from scratch. But the Grocery stores will try to convince you that you do, have to, or should. Buy food from them or not, the grocery store has already been paid.
How you ask? Legacy grocery stores have received PAYMENT, (slotting fees) from food manufactures the ilk of Campbell’s, Coca Cola, J.M. Smucker, and Nestle to put each of their products on the shelves. Companies the ilk of Whole Foods are garnering market share from traditional supermarkets because they focus on selling ‘better for you’ fresh prepared food.
Fresh prepared Ready-2-Eat and Heat-N-Eat food is considered ‘better for you’ by consumers. Whole Foods understands that both Millennials and Boomers alike are focusing more on healthy eating choices and creatively prepared meals that they don’t have to cook from scratch according to Foodservice Solutions® Grocerant Guru™.
Retailers that focusing on fresh prepared Ready-2-Eat and Heat-N-Eat food have a distinct advantage over legacy grocery stores. That advantage is simple customers. Those customers more concerned about price are or have migrated to the dollar store sector, Aldi, or other retailers where quality or price trump selection.
Value matters to consumers Ready-2-Eat and Heat-N-Eat fresh prepared food is valued by consumers and Whole Foods understands delivering quality, consistency, and fresh differentiation within the Grocerant Niche.
Steven Johnson is Grocerant Guru™ at Tacoma, WA based Foodservice Solutions®, with extensive experience as a multi-unit operator, consultant and brand/product positioning. Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche.
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