Supermarkets compete for share of stomach with more grab-and-go options

“Grab and go” in and fresh/prepared food options are shaking up the supermarket industry, with significant implications for marketers,

Grab and go” and fresh/prepared food options are shaking up the food business, with significant implications for marketers, real estate professionals, and store designers. Operators on the forefront of these demand shifts stand to make gains in revenue, “share of stomach”, and margin.

For grocers, as center store revenue growth slows, growth in fresh and prepared options continue to accelerate. Store resets that put ready to eat options up front, expanded selections that go beyond salad and fruit bars, and a keen focus on the shopping experience are less and less differentiators, and more and more table stakes.

Marketers must respond to this continuing shift by moving beyond basic shopper segmentation approaches to understand how consumer behaviors differ both by how the shopper wants to buy, but how that same shopper wants to buy differently across different categories and different competitors. For fresh and prepared foods in particular, grocery marketers need to consider how convenience stores are positioning themselves. Speed of checkout is a key driver of satisfaction for fresh and prepared purchases, and convenience stores are increasingly viewed as a much faster and easier option than grocery stores.

The pressures on margins created by the rise in demand for pick-up and delivery options means operators will of necessity move beyond the traditional large box and explore different formatsAmazon Go is only the most notable example of a radically different format and experience. Is it a grocery store or a convenience store? Small format stores accounted for a substantial portion of the 30% growth in new store openings last year.

Bottom line: in this rapidly moving space, the implications of shifting consumer preferences and accelerating category growth requires a far-sighted perspective on how your brand should compete, a laser-like focus on the customer, and a nimble approach to driving change.

Read the full article Grab and Go is all about fresh and fast from SuperMarketNews.com.

Found this interesting? Why not share it:

Read more articles about:

Location-based marketing content

Related Posts

Location intelligence

Top five factors to consider when choosing a location analytics partner

Explore the critical considerations when choosing a location analytics partner to optimize and grow your real estate...

Top five factors to consider when choosing a location analytics partner

Events

Reflections on ICSC 2024 in Las Vegas

Thanks to all who came to visit Kalibrate at this year's ICSC show in Las Vegas. Here's a few reflections on the...

Reflections on ICSC 2024 in Las Vegas

Location intelligence

The Kalibrate retail round-up: May 2024

In this monthly feature, we look across the industry and mainstream news to uncover some stories of note that we...

The Kalibrate retail round-up: May 2024

Start your journey to more informed decisions today

Get in touch to see how Kalibrate could empower your decision-making.