Legacy Grocery Stores Battle: Slotting Fees for Customers

 

Has begging for more and more money in the way of slotting fees become just a way of life.  What is on your shelf does matter.  Are, your customer focused of slotting fees or meals?  

With SNAP participation continuing to grow are legacy grocery stores becoming even more dependent on slotting fees?  Restaurants and new non-traditional fresh food retailers are driving top line growth with customer relevance while legacy grocery retailers focus on SNAP and Slotting fees. 

The relevant question for the consumers is What’s for Dinner.  According to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® slotting fees are distraction and in conflict with keeping focused on the consumers wants and needs.

Consumers do not want to cook from scratch day after day.  The do not have the skill-set to duplicate the international meals and meal components that have become accustom to enjoying.

So, how do Americans decide what to have for dinner when they want to go out to eat? The most common ways that people find somewhere to eat are on Google (76%), through word-of-mouth recommendations (64%), on Yelp (39%), and on social media (30%).

When asked where Americans get dinner, most (77%) commonly eat at home or cook for themselves. 50% say they regularly get takeout or pick up, 31% say they go to restaurants, and 3% say they use a meal subscription box.

No. 1 factor that consumers say would prompt them to purchase from retail foodservice is that the food looks good, and 27% of consumers say that fresher grab-and-go options would encourage them to make repeat purchases from a store’s prepared foods section.

No. 1 breakfast item is a breakfast sandwich/wrap, with 42% of consumers saying they’d purchase if

Consumer Trend Report, 92% of consumers said they expected to maintain or increase their purchases of grab-and-go items in the near future.

So, lets get to the point if you are running a legacy grocery store that has become dependent on slotting fees for your survival. Your business plan is out of date.  Your sales data is driven by what other paid you to put on the shelf.  Not what customers would choose in an open and free marketplace.

In fact, 83.6% of all restaurant meals in 2022 are purchased from a fast-food outlet or drive-thru. That’s right while most of even our loyal readers of this blog know that fact, they will not admit aloud that they too buy meals and meal components for family members at a fast food drive-thru. 

While more food is purchased for at home for more total meals eaten at home than out consider this fact. In 1966 consumers spent $149B for food away from home and in 2022 that number was $955B. The trend is your friend.  Where are you selling meals and meal components in 2023?

Do you want to meet the needs of your customers or get paid my your merchants?

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

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