Thursday, August 23, 2018

Grocerant vs Grocery: Stack them High & Let the Fly or Fresh Food Fast

What a conundrum for legacy grocery stores that are run by aging baby boomers do what worked for decades or evolve with today’s consumers.  Gone are they days grocers could just sit back collect slotting fees for stocking the shelves with products food manufactures wanted them to sell for little or no profit.  Living off slotting fees is a thing of the past according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
Today consumers have elevated fresh food choices.  There are now 29 restaurants for every traditional grocery store in the United States and most offer meals and meal components for takeout and delivery extending their brand’s reach directly into the home according to Johnson.
Back in the day stacking the shelves high and selling at velocity was all grocery stores had to do to find success.  Consumers no long want to cook from scratch they want Ready-2-Eat and Heat-N-Eat fresh prepared food, and they want it fast.

Like it or not the grocery store business has to change and that change must be driving by leaders willing to focus more on the present, and future than the past.  Sales of many legacy CPG shelf stable products continue to slip as consumers migrate to grocerant niche fresh prepared food for immediate consumption.
The fact is fresh and perishable foods generated at grocery stores sales of more than $177 billion in the latest year according to Nielsen. That’s nearly 14 times as high as all food and beverage sales online this year. Across the FMCG brick-and-mortar landscape, fresh categories have driven nearly 49% of all dollar growth this year. Furthermore, many fresh ingredients have been the starting point for category reinvigoration across both packaged food and non-food items. When so many retailers are struggling to get people in store, it’s no surprise that many are placing a heavier emphasis on fresh categories throughout the perimeter. Today, fresh categories are an invaluable source of growth within the four walls of your in-store environment according to Nielsen. So are you still looking for slotting fees? Why?   
Cook it fresh sell it fast. Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: or 253-759-7869

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