Consumers Consider the Alternative…Formats
By George Anderson
A report from Retail Forward, Food Channel Industry Outlook, says “alternative formats” will capture most of the increase in consumer spending on food-at-home sales in
the years ahead.
The result, says the report author, is that supermarkets will need to redefine their value proposition and the customer shopping experience if they wish to keep pace.
“The middle-of-the-road approach historically taken by many conventional supermarkets no longer offers many compelling reasons to shop there,” said Nick McCoy, author of the
Retail Forward report.
“In the coming years, expect the supermarket industry to look different than it does today as new formats targeting specific shopper segments take shape,” he said.
Food Industry Channel Outlook identifies four areas where store operators will need to concentrate to remain competitive.
- Understand consumers better — Shoppers continue to find food-at-home from outlets other than supermarkets.
- Develop new formats — Concepts including extreme value, upscale/gourmet, etc. may prove more effective in reaching targeted consumer segments.
- Become more efficient — Business needs to be continually reexamined to weed out unnecessary costs.
- Throw out the cookie-cutter — One size does not fit all. “Food concepts of the future will center around consumer needs,” said Mr. McCoy. “There will be less emphasis on
price and more emphasis on creating value and an improved shopping experience via a focused assortment, better service and unique technology.”
Moderator’s Comment: What grocery store concepts do you see gaining popularity in the years ahead? Which operators and their concepts have shown an ability
to adapt to the changing needs and behavior of consumers? –
George Anderson – Moderator
- Supermarket Companies Must Make Fundamental Changes to Remain Competitive,
New Retail Forward Report Reveals – Retail Forward