Convert floor space from legacy CPG to fresh food or capitulate customers.
Is the mantra many legacy CPG retailers are hearing today from consultants the
ilk of Foodservice Solutions® Grocerant Guru™. More and more space is being allocated to fresh
prepared Ready-2-Eat and Heat-N-Eat fresh food, that’s Grocerant niche success space.
Today large full service restaurants are increasing meal component offering
in Buy one Get one
To-Go and QSR’s are focusing on price, speed and new menu offerings of bundled
meal components to garner additional meals from CPG retailers.
.
A RetailNet Group recent study
found that retailers should be “adding ‘grocer-ants’, expanding to go foods, merchandising
more fresh prepared food and less center store while appealing to an ever
expanding global palate.” Those are
just a few of growth platforms identified by RetailNet Group for legacy big box
retailers to maintain profitability and customers.
Meal Component Bundling
Grocerant Ready-2-Eat and Heat-N-Eat fresh prepared food is causing
significant product mix shifts from legacy CPG products to fresh prepared food
due increasing customer demand according to Foodservice Solutions® Grocerant Guru™. Today legacy CPG
retailers are faced with the need to reallocate the space, often replacing it
with new services and fresh food experiences that will bring in new traffic to
the store. For many legacy big box retailers, adding grocerant fresh prepared
food is a good solution to provide a differentiated experience, drive traffic
and compete with QSR’s, limited service, and full service restaurants.
Deferral Cooking
Consumers do not want to cook from scratch. Today, a home cooked meal
is comprised of bundled meal components. One key driver is a lack of a
multi-ethnic cooking skill-set, combined with time-starved consumers need for
convenience, are causing retailers to add or expand prepared To-Go foods
departments, add inside seating options, and offering additional Heat-N-Eat
options. The undercurrents of disruption is found in customer migration. Driven by migration from scratch cooking too
fresh prepared meal components, and too To-Go foods options that all fall under
the umbrella of the grocerant niche.
Proximity Shoppers Drives Convenience Store Fresh Food
Since 1991 the number one reoccurring complaint about grocery shopping has
been how much time it took. Convenience stores with a small foot print figured
that out. Then they discovered coffee, fresh coffee and fresh food. The
Retail Net Group found “factors such as urbanization, an aging population and
an increased preference for proximity are driving a fundamentally new
convenience store. There will be new multi-destination convenience superstores
that will aim to roll up independents and compete directly with QSR. As such,
the convenience competitive set is broadening.”
Sheetz, Wawa, Rutter’s and 7 Eleven are all expanding driven by fresh
prepared food, meal components, a proximity to customers that elevates a
personal relationship through high frequency coffee trips, differentiated fresh
food, and price, too compete with QSR’s.
The retail food space is not brain surgery it is evolving more rapidly
today than it has in the past 20 years. Fundamentally the retail food
space remains very much the same, consumers are in control. Have you hear
of Uber? Uber is delivering fresh food
is a much smaller space than you occupy.
Is your company suffering from footprint malaise? Are you doing what you
have always done? Doing it the same
way? Why?
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