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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