Thursday, October 5, 2023

Legacy Grocer Store Relevance Continues to Decline


When a key food sector funded research project study shows a continued decline in key demographic customer loyalty one thing is obvious.  That is, usually things are much worse that then report found according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

So, currently supermarkets remain the go-to retail venue for fresh produce, but their pull is weaker among younger shoppers, according to the Food Marketing Institute’s  “The Power of Produce” study.

What other avenues of distribution are consumers migrating? Well, according to Johnson grocerant niche restaurants, dollar stores, and grocerant niche convenience stores.

Shockingly that report found that only 50% of all shoppers cited a full-service supermarket as their primary store for purchasing fresh produce. Wow, have things changed since I was a kid.  All that said FMI’s report gives traditional grocery stores a leg up on other retail formats, given that 55% of grocery trips include fresh produce. Ok, you know what I’ am going to say now.  We told you so! Yes, Grocerant niche fresh food sales continue to drive customer migration.

Here is where the FMI study edified what we have been saying for 1 years.  They found that the younger generation exhibits a greater affinity for buying fresh fruit and/or vegetables at supercenters and alternative retail channels, including online, dollar stores, convenience stores and farmers’ markets. Of consumers polled, just 34% of older Millennials named a supermarket as their primary store for produce.

 Rick Stein, vice president of fresh foods at FMI, said in a statement. “Specifically, the study suggests a need for a renewed focus on strategies for continued growth, including organic, locally grown produce; value-added produce for time-starved customers; produce-based beverages and private branded produce.” What he meant to say is you DONING WHAT YOU HAVE ALWAYS DONE AND DOING THE SAME WAY WILL NO LONGER WORK.

Here is some information from the study all food retailers will find useful.

  1.  “Fresh fruit and vegetables also show potential to fit into more eating occasions. Although 36% of consumers polled said they eat fresh produce about three times a week or less, they would like to include it more frequently in meals or snacks, FMI found.
  2. 56% of shoppers buy veggie shakes or fruit smoothies, and 53% buy cold-press juices. Those figures don’t include similar beverages people make at home or purchase from other areas of the store, such as kombucha.
  3. Nordstroms, Ikea are both now selling fresh foods fast. 

Are you offering more fresh fruit and produce to your consumers as a Hand-Held Food for immediate consumption options?  If not Why? 

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.

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