Well, here we go again. Regular readers
know that Foodservice Solutions®, Grocerant
Guru® was the
first to identify, quantify, and qualify customer migration from legacy food
formats to new non-traditional fresh food formats in a plethora of locations
including furniture stores, club stores, clothing stores, dollar stores, and
coffee shops to name but a few.
So, another industry leading food
research house is jumping on the grocerant bandwagon, this time IRI, edifying results that
regular readers of this blog have paid attention to since 2009. Jonna
Parker, principal, IRI Fresh Center of Excellence, during the
"Balancing the Store Size Pendulum" webinar stated “Shoppers are
expanding their consideration set when shopping for fresh foods to smaller and
more niche outlets,” Let’s all say it
together, THANK YOU IRI, for edifying Steven Johnson’s
findings.
So, get this IRI points out that “Across
all outlets, grocery has the lion’s share of perishable and perimeter food
sales (64%), but IRI sees that margin eroding as purchases shift to other
channels, such as convenience/gas, dollar stores and digital.” Don’t get us wrong, we are proud of our work
and our clients like us; but it is nice to see others coming along.
The IRI report also found that 23% of
households purchased fresh foods from dollar stores, 19% from
convenience/gas and 10% from Trader Joe’s in the 52 weeks ending
March 31. Ten percent of households also purchased fresh foods online.
Here is what is worrisome for legacy
retailers “consumers, particularly those in their prime spending years of
40-54, say they are buying more-fresh at smaller format stores and online”.
Parker continued “The fight for fresh
dollars is more-fierce than ever,” she said, adding that grocery is
“almost at war” with the competition.” Johnson, is the only food industry professional
with a fully developed model of the competition with his ‘Share of Stomach’ battle insights.
Last year was the tipping point in fresh
sales, which had seen growth of as much as 5% earlier in the decade, but grew
only 1% this past year—3% less than in 2014. Fresh is still growing, however,
adding $7 billion in sales since 2014.
Foodservice Solutions® team identified that it is at the intersection of Price, Convenience
and Time that consumers determine which channel (Grocery / Restaurants /
C-Stores / Dollar Store’s / or new non-traditional) that will use to buy ‘What’s
for Dinner’.
For
international corporate presentations, educational forums, or keynotes contact:
Steven Johnson 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. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call
1-253-759-7869
No comments:
Post a Comment