Traditional grocery stores continue to capitulate customers to other retail channels. In fact according to Willard Bishop Consulting the future is not in mainstream supermarkets. Therefore, we have found that private label manufactures are looking elsewhere. Look at some facts from a recent Willard Bishop study on why and where consumers are moving:
- WB found, the traditional grocery channel's dollar share has decreased by about half since 1988, while non-traditional grocery and convenience stores competed for the food dollar.
- Specifically, the non-traditional channel's dollar share jumped from 2 percent in 1988 to 39 percent in 2014,
- The convenience channel's dollar share almost doubled from 8 percent to 15 percent over those 25-plus years.
- By 2019, Willard Bishop predicts traditional supermarkets will continue to lose dollar share to other segments of the traditional grocery channel, like fresh format and limited assortment.
Well, that said if you're trying to break into the Convenience Store (c-store) channel as a private label supplier, here are some numbers to better understand the scope of the industry:
1. There are 153,000 c-store retailers
- 160 million consumers shop in these stores every day
- The average store footprint is 3,200 square feet
- There are 3,500 items in an average store
- There are 1,200 vendors
- There are 450 wholesalers that move about 9,000 items
If that seems overwhelming, you are looking at the glass half full. The C-store channel is growing faster than any other channel in retail foodservice today. Here are our three steps to success entering the C-store channel:
1. Differentiation how is your brand different, know your competition and where they fall short
- Address retailer's brand requirements minimums, guarantees. shelf life, delivery, and other product attributes
- Facts sell. Provide support metrics be prepared with factual data, margin impact, incremental growth and measurable goals
Success does leave clues. Outside Eyes can provide top line sales and bottom line profits if and when you are ready for success. Food manufactures think success think C-stores.
Visit: www.FoodserviceSolutions.us if you are interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization or you can learn more Contact: Steve@FoodserviceSolutions.us