There is no doubt
that the customer is dynamic not static. It does not look as if work from home
is going to go away any time soon. With
many companies wanting all workers back at least a couple days a week and
workers not wanting to get stuck in traffic, lose “Their Time” they are hesitant
at best to return according to Steven
Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
With the increase in
remote and hybrid workers phenomenon continuing it is likely to permanently
impact retail food in-store traffic. We all know the work-from-home (WFH) trend
was initially a safety-related response to the COVID-19 pandemic, it evolved
over time based on convenience and the preference of both employees and
employers.
The breakfast daypart was hit the hardest
at C-stores and fast-food restaurants. Thus, the widespread move toward a
permanently remote or hybrid workforce is affecting many different aspects of
consumer behavior especially shopping trips during the breakfast daypart,
according to new research conducted by VideoMining.
The current average number of WFH days in
the United States is 3.1 per week; approximately 22 percent of U.S. workers
identify as working remotely; 53 percent of employed adults say they can
effectively do their jobs remotely; and all age groups, including younger
generations, prefer the flexibility of remote/hybrid work, according to various
research reports.
Additionally, remote workers trend
younger, with millennials accounting for 43 percent, and they skew towards men,
households with children and higher-income households.
Notably, long-term adoption of WFH means
that the loss of foot traffic by
daily commuters is more permanent, although the level of impact is highly
dependent on store location. The c-store channel will need to look for
alternate growth opportunities as it reconciles with the fact that shopping
trips will continue to be affected by WFH, the company said.
The breakfast daypart (6 a.m. to 9 a.m.)
typically accounts for an average of 19 percent of in-store sales at
convenience stores; unsurprisingly, stores that lost the most daily commuters
also saw breakfast sales suffer the most. Overall, c-store breakfast has been
recovering, but WFH is a factor in a slower-than-expected recovery.
The after-work daypart of 4 p.m. to 7
p.m. has also been negatively impacted, hurting sales of products like beer and
snacks.
The team at VideoMining pointed out, WFH has led to
other aspects of c-store shopper demographics shifting in some stores, such as
some stores now having a much higher percentage of blue-collar workers. This in
turn has shifted the overall demographics for the stores.
Not all retail channels are feeling the
same impact. Outside of the c-store channel, WFH helps grocery stores by
increasing the number of employees eating lunch at home; prompting a sharp
spike in snacking; and influencing more men and younger shoppers to take the
lead in grocery trips.
Because WFH impacts each retail channel and
product category differently, it is important to closely monitor the impact
that shifting store trips and in-store behaviors have on each category, it
added.
State College-based VideoMining helps retailers and consumer
packaged goods companies optimize retail performance and experience by decoding
in-store behavior.
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: Facebook, LinkedIn, or Twitter
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