Friday, June 10, 2016

Why Retailers Need to focus on the Grocerant Niche?

Foodservice industry icon Bill Bishop of Brick Meets Click has been saying ‘the rate of change is increasing.”  That got our Grocerant Guru® thinking which foodservice retailers are in a race looking for growth for growth sake?  Many legacy food retailers are focusing on growth but not looking at the evolving customer’s food choice preference and foodservice sector migration patterns. That as regular readers of this blog know is simply a race with no finish line.

One kind of has to wonder since HEB and Publix both are buying land like it was 1960 planning new HUGE stores like it was 1979.  Today it appears as if Wal-Mart is abandoning the ‘lowest price’ running to the middle of the market place that these are three companies pushing for growth for growth sake?   

Foodservice Solutions® grocerant niche expert team thinks it reminds them kind of like Sears' woes today "Where America USED to shop." The team asked what do food retailers need to look out for so they do not become the next A&P, Burger Chef, or Sears?

Foodservice Solutions® Grocerant Guru® says there are a number on common undercurrents of often over looked or acceptance of the status quo that befall once successful retailers.  They are:

1.       Complacency
2.       Stuck in the middle neither price or service oriented
3.       No real differential advantage. 
4.       Failure to recognize the changing needs of their customers. 
5.       Failure to recognize the new & changing competitors (extreme value retailers - dollar stores, drug stores, food truck, meal kits, organic stores, Liquor stores, club stores, online, etc. 

 The new low-end retailers are full of cash and growing Aldi will have 2,000 units open by 2018.  Between now and 2019 Lidl is investing 4 Billion in the US all the while WinCo is expanding!  The landscape leaves little room for those in the middle when ‘better for you’ fresh food and fast service companies the ilk of Wawa, Sheetz, New Seasons Market, and Green Zebra Grocery continue to find success. 

Laughing all along is AMAZON leveraging robots to pick and fill online grocery orders when others are hiring real people, training employees to walk around and pick product.  Amazon in the grocerant niche and is ten years ahead other just don't know it as they deliver restaurant fresh food and grocery fresh food in many markets today.

Foodservice Solutions® Grocerant Guru® stated “legacy retailers need to begin migrating to the grocerant niche because consumers already have.” Our Grocerant Guru® continued “Watch for Amazon to buy Sears as Amazon entering the appliance business and plan on opening new brick and mortar stores.  Amazon will sell you the food and stove to cook it on. Don’t get trapped doing what you have always done and doing it the same way. 

Invite Foodservice Solutions® to complete a grocerant program assessment, grocerant ScoreCard.  For brand, or product placement assistance our Grocerant Guru® has the skill-set you are looking for.  Since 1991  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: or 253-759-7869 

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