Sunday, April 10, 2022

Gen Z and Millennials focused Fresh Street too Drive New Grocery Shopping Habits

What goes around comes around.  Differentiation does not mean different it means familiar according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Today, digital coupons are leading the way in terms of redemptions, holding a 34-percent share of redemption versus free-standing inserts, which came in second at 24 percent.

Now, according to the Inmar Intelligence 2022 "Promotion Industry Analysis." This marks the second consecutive year that digital coupons have led in redemptions.

With a 7.9-percent increase in the U.S. Consumer Price Index along with continuing supply chain challenges, shoppers are looking for savings today more than ever, according to Inmar Intelligence. Nearly one-third of shoppers increased their coupon usage in 2021 and 54 percent did so because of financial pressures.

So, based on the Inmar Intelligence 2022 report, these shoppers are turning to digital coupons over other savings options, with 72 percent of shoppers reporting they used a digital coupon in-store. In fact, there was a 13-percent increase in digital coupon redemption in 2021, as inflation started to take hold. Brands reacted swiftly to the increased shopper demand and increased digital coupon distribution by 28 percent in 2021, noted the research firm.

In a Battle for Share of Stomach

New Companies Can Win

Now at the intersection of Gen Z and Millennial consumers is a new start-up looking to disrupt a fading, fragial, floundering legacy grocery industry according to Johnson.  That company Fresh Street , and is built exclusively for online, click-and-collect shopping opening in Chicago. 

Offering no substitutions, no fees and affordable local products, Fresh Street will serve as a convenient way for Chicagoans to get their groceries.

Michael Fassnacht, president & CEO of World Business Chicago, and chief marketing officer for the City of Chicago, stated, “Chicago is the number one city for food innovation and logistics in the country, both sectors are strong drivers of our city’s economic recovery, job growth and neighborhood expansion,”… “In this spirit, we are incredibly pleased to join Fresh Street today for the launch of its online grocery platform in West Rogers Park. We look forward to seeing this new grocery option represent legacy and emerging Chicago food brands as it grows and expands throughout the city and country.”

So, on the heels of securing $4 million in seed round funding this past October, Fresh Street said it has one goal in mind: a satisfied customer. The grocer said its mobile app (iOS and Android) or desktop experience promises users no substitutions and only real-time inventory. Without customers in-store, the app always reflects real volume, the company said, and pickups will be available within 30 minutes of placing an order. In fact, the 10,000-square-foot location is all about curbing the friction that plagues grocery pickup experiences the company said.

Is your company at an intersection?  Are looking a customer ahead?  Don’t get lulled into doing what you have always done and kept doing it the same way.  That has proven to be a problimic path forward.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: FacebookLinkedIn, or Twitter 

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