Direct
to Consumer fresh prepared food and fresh food continue to find success,
eroding the customer base of many a legacy grocery store. While many legacy
grocery chains and legacy restaurant chains try to preserve market share think
they understand the evolving customers, non-traditional fresh food retailers
see an unmet opportunity, and are filling it.
Here
we go again another non-traditional retailer entering the fresh food space. Overstock.com
is now selling farm fresh produce through its Farmer’s Market – yet another demonstration of the speed
in which consumers are adopting to new points of fresh food distribution. Legacy food retailers appear stuck in what
Foodservice Solutions® Grocerant Guru™ calls “footprint malaise”, and hell bent to do what they have been doing
the past 40 years and doing it the same way.
Legendary
food industry insider Bill Bishop understands the power of brand building
stating,“Overstock.com’s move into produce drafts on the powerful motivations
that are driving consumer participation in local farmer’s markets. It’s
worthwhile noting how effectively they are able to deliver the "food
stories" through digital media, from biographies of farmers and specialty
food producers to a look at production practices and simple health conscious
recipes.”
Overstock's
ability to garner market share from legacy retailers is not surprising. I would
suspect that they simply have been watching how successful Amazon has become a
successful fresh food retailer now selling $1.6 Billion in grocery sales a year
according to Supermarket news. Entering the fresh food ‘better for you’ farmers
market space has helped edify Overstocks own brand. Overstock.com is getting positive press for
doing good, helping farmers while making money.
Consumers
continue to look for new non-traditional points of distribution for Ready-2-Eat
and Heat-N-Eat fresh food. Are you
trapped in ‘footprint malaise’? What was
the last new non-traditional point of distribution for your brand? Are you
ready for Outside Eyes for bottom line profits?
www.FoodserviceSolutions.us specializes in outsourced business
development. We can help you identify, quantify and qualify additional food
retail segment opportunities or a brand leveraging integration strategy.
Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991 Contact: Steve@FoodserviceSolutions.us
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