“Shallow Shoppers” pose an additional risk for Safeway, Supervalu andKroger. Three of the United States largest grocery store chains faced withunderfunded multiemployer pension plans have a growing drain on cash flow andearnings reported Jon Springer in Supermarket News. When combined with an exposure to “ShallowShoppers” the risk of takeover would appear even greater.
Safeway, Supervalu and Kroger just might begetting another look from Metro AG, Marks & Spencer, Carrefour, or The TengelmannGroup. While Europe’s largest retailersprepare for an economic slowdown on their home turf could they be looking at Supervaluas the next opportunity?
The Tengelmann Group has learned lessons ofretailing in the United States and now understands what it takes to convert alegacy chain that is out of step with consumers into one with contemporaryrelevance. Tengelmann Group is anoutstanding multi-concept food retailer with a global reach. If not Supervalu, Kroger are they looking at Safeway?
Metro’s new CEO Didier Fleury islooking for growth as well. Will thesethree chains in the United Sates all with “Shallow Shoppers” be a target? Don’t forget that the Carrefour Group isrepositioning for growth right now as well.
Shallow Shoppers as defined in “The CommitmentEconomy” survey of over 39,000 people in 17 markets as “consumers which wouldlove to shop at a better quality retailer, but who are unable to because ofalternatives are too far away or too expensive”. Leveraging new ownership with grocerant nichepositioning will provide the platform for shallow shopper conversion.
All retail food brand managers will become more andmore familiar with the term Shallow Shoppers as they target additional marketshare. Growth in top line sales andbottom line profits are realized by making a quality differentiated product withconsumer relevance accessible to additional markets and consumers. Do you haveShallow Shoppers? Why? What are you doingto edify your brand and products with consumers?
For international corporate presentations,educational forums, or keynotes contact: Steven Johnson Grocerant Guru atTacoma, WA based Foodservice Solutions. His extensive experience as a multi-unit restaurant operator,consultant, brand / product positioning expert and public speaking will leavesuccess clues for all. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant
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