Thursday, April 14, 2016

British & U.S. Grocers Face a Trio of Competition

Foodservice Solutions® Grocerant Guru® stated ‘United States grocery retailers will soon be facing the same tripod of competition that has been more than troublesome for legacy grocery retailers.  That tripod of competition consists of low cost grocers Aldi, Lidl, and Online Grocery shopping (Amazon).” 

Today in the United States low cost grocery Aldi has over 1,685 stores open with another 300 scheduled to open by 2018.  Lidl has opened a U.S. headquarters and is building out several distribution centers now and is scheduled to have stores open by 2018.  All the while Amazon’s Prime Now grocery delivery, AmazonFresh is expanding its reach each month.  

Today in Great Briton fully 11% of Britons have stopped going to the supermarkets for solely online grocery shopping according to a new study by Mintel. Mintel forecast that Britons will spend 9.8 billion pounds this year for Online groceries.  

Our Grocerant Guru® expect that U.S. consumers will adopt, migrate, and recommend to their friends Alsi, Lidl and AmazonFresh the same way Britons have.  The days of going to the supermarket are over for a tenth of Britons and our Grocerant Guru® predicts that the pace of customer adoption to the tripod of new competition will only increase in the U.S.   

The Mintel study found “As many as half (48%) of Britons are currently online supermarket shoppers, while 11% now buy their groceries without visiting a bricks-and-mortar store at all, the study by analysts Mintel found. Younger consumers are most likely to shun the supermarket trip, with 19% of 25 to 34-year-olds buying all their groceries online.”

Interestingly the Mintel report also found that “a quarter of Britons (24%) have never bought groceries online and have no interest in doing so, rising to 38% of over 55s.” So, that does tell us that legacy grocery stores will not go away, but they will have to evolve from groceries too Grocerants and begin filling stores with Ready-2-Eat and Heat-N-Eat fresh prepared food according to the team at Foodservice Solutions®.

For international corporate presentations, educational forums, or keynotes contact:  Grocerant Guru at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all.

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