Dollarstores have cherry picked the “center of the store” (grocery aisle shelf stablegoods) for 15 years. Consumers haveresponded with frequent trips to Dollar stores buying shelf stable products forless. Even more important consumers canget in and out of Dollar stores fast. While legacy grocery stores continuefocusing on legacy metric’s the ilk of “basket size”. Consumers have wondered on, looking for freshprepared ready-2-eat and or fresh prepared heat-N-eat food aka grocerant food.
Foodindustry analysts have not been surprised by the volume of sales declines overthe last two quarters of many “center of the store” items. “Heinz reported adrop of 2.4 percent in its second quarter. Kraft unit sales were down 2.8percent in its first quarter, and at Kellogg, its North American volumes were down1.7 percent in its second quarter.” These analysts continually report on thesuccess of the fresh food stations at Whole Foods, the sales per square foot atTrader Joe’s filled with ready-2-eat and heat-N-eat fresh prepared food. Is your company doing what is has alwaysdone? Are you waiting for consumers tocome back? Consumers move forward.
Consumerstalk about cooking from scratch but when probed it’s clear a “home cooked” mealfor a family of four with the parents under 40 is typically a bagged salad,rotisserie chicken, and vegetable or desert bought from a store. Bundling meal mix and match components fromfresh prepared ready-2-eat or heat-N-eat food into a customized family meal isfast replacing cooking from scratch.
Legacyfood retailers must evolve with the consumer. It they do not they risk becoming the next Tower Records, BlockbusterVideo or Burger Chef. Is your companyready to move forward?
Invite Foodservice Solutions® to complete agrocerant program assessment, brand, product placement or positioningassistance. Since 1991 Foodservice Solutions® of Tacoma, WA has been the globalleader in the Grocerant niche visit Facebook.com/Steven Johnson,Linkedin.com/in/grocerant or twitter.com/grocerant.
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