Success does leave clues. However just because Warren Buffett invested
in Kroger does not mean Kroger will
thrive or has a plan to beat Walmart for the middle of the grocery sector. Don’t
forget that Buffett investment in Kraft
Heinz did not go so well. Just look
at the at Walmart’s most recent earnings report where they failed to meet
expectations after repositioning to the middle of the grocery sector.
According to Steven Johnson, Grocerant
Guru® at Tacoma, WA based Foodservice
Solutions® Kraft
Heinz provides a view on just how difficult it is to reposition a brand. Aldi, Lidl, and WinCo are all growing
garnering share from Walmart, and Kroger. Aldi, and Lidl each offer a greater shopping
destination fill with discovery for less driven in large part to private label
products for less.
Facts mater some more than others in the
food space. The number one driver of
change within the grocery sector is the U.S. Household size. Yes, the demographics do drive change, in
fact 62.88%
of U.S. households comprised of one or two people. With an ageing
population there are few households that want to buy 10 porkchops, two stewing
hens, or 100 cans of different soups?
Winning in the middle is hard. There will not be two winners in the middle
of the grocery sector. So, I guess you
will have to pick Walmart or Kroger. For
growth the WinCo, Aldi, and Lidl look to continue drive change as the garner incremental
customers, build new stores, and innovate fresh foods for smaller sized
households. So, who will win the middle of the grocery sector? Or should the
question be how many more traditional grocery stores are simply going to fade
away.
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 www.FoodserviceSolutions.us of Tacoma, WA has been the
global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869
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