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Grocery trends presentation skills
The document discusses trends in consumer grocery shopping behavior over the past 10 years and how retailers have adapted. It outlines that consumers now value convenience, variety, health, and environmental/economic factors. Retailers have responded by expanding private label and niche products, implementing solutions like ready-made meals, bundling product suggestions, and educating customers through nutrition labeling and sustainability practices. Retailers are differentiating themselves as lifestyle destinations to meet evolving consumer needs and attract a wider range of shoppers.
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Grocery trends presentation skills
- 1. Trends in GroceryRetail Authored by Steven Conway Date: 2008
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- 4. Evolution of RetailGrocery retail very much different vs. ten years ago Organics and “all natural” products permeate all shelf space International food exposure drives demand for products at retail Manufacturers and retailers develop new retail environment Time crunch drives ready-made growth Lux touches go mainstream with specialty sections (i.e. cheeses, wine, olives). Desire to be destination of choice in increased competitive food retailing drives lifestyle store formats
- 5. Consumer behavior drivesgrocery retail 4. Environmentally Aware 5. Economic Pressure Private Label Go Green Initiatives 3. Health Conscious Education 2. Variety Desired Niche Aesthetics 1. Convenience Key Quick Trip Solution Display Ready-Made Semi-Homemade Digital
- 6. Convenience Key 1.Convenience Key Quick Trip Solution Display Ready-Made Semi-Homemade Digital
- 7. Consumers look forDIFM alternatives Consumer behavior: Overscheduled, seek ready-made foods to alleviate pressure of cooking Retail challenge: Fighting for share of meal dollars against takeout and restaurants Retail solution : Ready-made meals & sides to accommodate lifestyles Example: Whole Foods, Tesco Fresh and Easy Market, Safeway’s Citrine Bistro, and Lund’s Market. Source: Progressive Grocer, August 2007 Iconoculture Whole Foods Salad Bar
- 8. Consumers want shortcuts - retail delivers solution Consumer behavior : Lack of time for meal planning, tired of defaulting to same old standby meals Consumer challenge: Finding new meal ideas, gathering ingredients Retail solution: Solutions displays—multi-category promotions ideas from meals to spring cleaning Example: Fresh Express, ready-to-eat salads, works with retailers & thirty other brands to bundle together meal solutions Source: IRI. Times and Trends. August 2007 Fresh Express bundle meal solutions
- 9. Consumers think of“homemade” in a new way Consumer behavior : Desire to control what family eats, but lack of time and know-how to make multi-faceted meals Consumer challenge : Shortcuts to make prepared + fresh = homemade Retail solution : Dinner assembly sessions Example: Publix Apron’s Make-Ahead Meals, customers register for sessions, create meals using retailers ingredients and selection of recipes Publix Apron’s Kitchen Line Source: TheLedger.com, November 2007
- 10. Consumers want streamlinedshopping experience Consumer behavior : Limited time, want to get in and out of grocery stores Retail challenge : Desire to interact with consumers and provide better shopping experience Retail solution : Create programs that make shopping easier i.e. text messaging coupons, touch screens, smart carts Example : Kroger links consumer cell phone with bank accounts for quicker check-out. Example: Microsoft MediaCart navigates consumers around store and check them out Source: IRI- August, 07, www.mediacart.com ShopRite MediaCart
- 11. Consumers low ontime refill on quick trips Consumer behavior: Time crunched, gathering staple items on the fly via quick trips – mission shopping for essentials i.e. bread, milk, juice Retail challenge: Convenience stores grocery section Retail solution : Offer essential items typically found at the back of the store in the front Example: Retailers create secondary milk displays in front of store. Source: IRI. Times and Trends. August 2007
- 12. Variety Desired Aesthetics4. Environmentally Aware 5. Economic Pressure Private Label Go Green Initiatives 3. Health Conscious Education 2. Variety Desired Niche Aesthetics
- 13. Consumers shopping needsvary, retail goes niche Consumer behavior: More needs & higher expectations: variety, specialization, price—ALL factors—no one stop fits all Retail challenge : Consumers shop by need state, average 3.6 stores Retailers roles: Wal-Mart= broad variety of goods, Costco= bulk food items, Trader Joe’s = unique items, Jewel= staple food items, plus bakeries and butchers on rise Retail solution : Increase breadth of offering to satisfy consumer needs and drive floor traffic Example: Retailers transition from offering staple only items to greater breadth and higher-end products & services Source: Speciality Food Magazine. “Supermarkets Go Specialty” May 2006 The Wall Street Journal. “Business Insight, Dec. 2007
- 14. Consumers multi-shop shopping,competition to be destination of choice Consumer behavior: More needs and more retail options, no need to default to traditional grocers Retail challenge: Be the destination of choice for consumers Retail solution : “ Lifestyle” stores, compete with higher end stores and discount retailers Example: Safeway Lifestyle stores: increased prepared foods, locally sourced, natural and organic products, sushi stations, larger delis, cooking demonstrations, full service butcher, Starbuck’s & Jamba Juice Safeway’s Perishables Display Source: Speciality Food Magazine. “Supermarkets Go Speciality” May 2006 Associated Press, December 2007
- 15. Consumer don’t wantto be bombarded Consumer Behavior : Consumers want a less intrusive retail environment while shopping Retail Challenge: Balance satisfying merchandisers and consumers Retail Solution : Create a cleaner retail environment which creates a better shopping experience Example: Restricting number, size, & configuration of in-store displays
- 16. Variety Desired 4.Environmentally Aware 5. Economic Pressure Private Label Go Green Initiatives 3. Health Conscious Education 2. Variety Desired Aesthetics Niche
- 17. Consumer seek clarityon “healthy” Consumer Behavior : Health conscious, overwhelmed with competing information Retail Challenge : Taking back control, providing added value by educating consumers Retail Solution: Act as an authoritative source, create systems that identifies better for you foods Example: Hannaford supermarkets rate the nutritional value of their items on a scale of zero to three stars. Example: Kraft’s line of sensible solutions educates consumers on choosing healthier ingredients Source: New York Times ( 11/2006, 9/2007)
- 18. Environmentally Aware 4.Environmentally Aware 5. Economic Pressure Private Label Go Green Initiatives 3. Health Conscious Education 2. Variety Desired Aesthetics Niche
- 19. Consumers become environmentaladvocates Consumer Behavior: Increased concern & education about greener and sustainable products Retail Challenge: Consumers seek out environmentally conscious retailers and products Retail Solution: Retailers and brands adopt green practice Example: Wal-Mart opens high efficiency stores. Whole Foods offers “A Better Bag” Source: Agri-Food Canada. Going Green: The Future of the Retail Food Industry, July 2007
- 20. Economic Pressure 4.Environmentally Aware 5. Economic Pressure Private Label Go Green Initiatives 3. Health Conscious Education 2. Variety Desired Aesthetics
- 21. Consumers increase preferencefor private label Consumer Behavior: Consumers seek high quality but demand low prices Retailer Challenge: Private label has been perceived as low quality and poor imitations of national brands Retailer solution: Drive innovation in overall quality, packaging, and ingredients Example: 70% of consumers think private label products are as good, if not better, than national brands Source: Mintel. Organic Foods - October 2007
- 22. Consumers taste profilesexpand Consumer Behavior: Consumers demand unique flavor offerings and organic products Consumer Challenge: Finding these products on a wide scale across multiple product offerings Retailer solution : Evolve private label to branded status, elevate consumers trust and increases awareness Example: Only 56% of consumers could identify Target’s “Archers Farms” as a private label brand. Example: Safeway’s O Organic line anticipates $300 million in sales for 2007 Source: Mintel. Organic Foods - October 2007
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Editor's Notes
- #2 Welcome. Thank everybody for attending this presentation on U.S trends in Grocery Retail What I will be presenting to you all is current trends in the grocery retail space that have been affected by consumer behavior and the solutions retailers are implementing to leverage these trends.
- #3 As a response to consumer behavior, grocery retailers have evolved their retail stores from once resembling a sterile type environment…
- #4 To turning their stores into colorful markets.
- #5 As consumer lifestyles have changed to wanting more healthier and fresher foods, grocery retailers have started to satisfy their needs in the retail space by offering up Organic, natural, international and specialty selections and products. Now with an evolution in the grocery environment, retailers have started to compete with take out and restaurants for consumers share of wallet.
- #6 With this change in consumer behavior, consumers are now starting to drive the trends in grocery retail. Here we see the five macro trends in grocery retail, and the sub trends that fall within them.
- #7 The first and largest macro trend identified is convenience and the five sub-trends that follow.
- #8 As American’s personal and professional lives have become increasingly busier, they have begun to expect a selection of ready-made meals or “Do it for Me” meals from grocery retailers to accommodate their lifestyles. This challenge for retailers has resulted in fighting for share of meal dollars from restaurants and restaurants. In which retailers have responded by introducing ready-made meals and sides to accommodate consumers lifestyles. The example seen here is one of the many DIY food bars you can see at Whole Foods.
- #9 Consumers looking for products that fulfill specific solutions want a retailer that allows them the ability to quickly locate everything they need. Retailers have responded by offering solution displays. This example was executed by Fresh Express RTE salads in which they launched a promotion with retailers and 30 other brands that addressed the need for meal solutions. Products were bundled together and offered at a discounted rate when buying multiple products. Over a nine month period, Fresh Express product sales captured more than a 50% volume life and other participating brand sales jumped an average of 40%.
- #10 Female head of households typically have always wanted to control what their family eats, but sometimes lack of time and know-how make it difficult for her. This behavior has resulted in a challenge for consumers looking to make fresh and prepared homemade meals in a short amount of time. The retail solution has been the creation of dinner assemble sessions. An example of this is the Publix Apron’s Make-Ahead Meals programs, which allows customers to build up to 12 meals to use within days or take home to freeze.
- #11 Looking beyond traditional in-store marketing, retailers look to emerging technologies to interact and provide a better shopping experience for time crunched customers. This has resulted in the proliferation of in-store technologies such as in-store TV networks, digital signage, touch screens and text message coupons. The example you are looking at is ShopRites Microsoft MediaCart which navigate customers around the store and check them out when they are done. RFID (Radio Frequency Identification) technology tracks customers movement around the store to pinpoint advertisement and other useful information.
- #12 Consumers low on time and unable to make large grocery trips often are just mission shopping for HH essentials. This creates a challenge for retailers as they have been competing with convenience stores grocery sections. Retailers solutions has been offering shopping essentials typically found at the back of the store, and placing them in the front.
- #13 The second macro trend identified is that of Variety Desired.
- #14 As consumers needs and expectations evolve, they are seeking both traditional and specialty grocery retailers to fulfill their needs state and are not always looking for the one stop shopping experience. As traditional grocers see consumers shop by their individual needs states and increasing visits to niche grocery retailers, many are offering more specialty food items. The Retailer solution is increasing the breadth of offerings retailers provide to satisfy consumer needs. As to date: 66.7% offer gourmet foods 50% offer natural/organic foods 25% offer ethnic foods.
- #15 As consumers continue to multi-shop for their needs at more niche retailers, it creates less of a need to default to traditional grocers. This creates the challenge for retailers to be the destination of choice for consumers. The solution has been the creation of “lifestyle” store that can compete with higher end stores and discount retailers. Example: A picture of Safeway’s lifestyles stores which offer more prepared foods, locally sourced, natural and organic products, and other niche products and offerings.
- #16 Consumers have always expressed frustration with in-store advertising. But for the retailer, they need to find a balance of satisfying their customer and the merchandiser. The retailer solution has been an increased effort of creating a greater shopping experience by implementing clean store policies, as less ads in-store create a cleaner shopping environment for consumers to navigate through.
- #17 The third macro trend identified is the increased health conscious behaviors consumers have taken on.
- #18 As consumers become more health conscious about the foods the eat, they seek clarity of healthier food products from retailers and manufacturers. Retailers have responded by offering a streamline process making it easier for consumers to find healthier products. Hannaford supermarkets has their own team of nutritionists that rates the nutritional value of their items on a scale of zero to three stars. Of the 27,000 products Hannaford had rated, 77% received no stars. Example: Odwalla natural juice lines receives one star based off Hannafords rating scale.
- #19 The fourth macro trend is consumers desire to be environmentally aware and retailers response
- #20 Consumers increased concerns and education about greener and sustainable products have started to turn them into environmental advocates. This has caused companies to create environmentally conscious retail spaces and products and start adopt green practices. Example: Wal-Mart has started opening high-efficiency stores that use 20% less energy than typical Super centers. Wal-Mart also offers “A Better Bag” made from 80% post consumer waste for 99 cents.
- #21 And the last macro trend identified is that of economic pressure
- #22 Consumers seeking high quality but demanding low prices have turned to private label as a viable option. The challenge for retailers is changing the stigma private label carries and losing the perception of low priced, low quality products. The solution for retailers has been the private label has re-emerged with innovations in quality, merchandising, and packaging making them comparable to their brand counterparts.
- #23 With more unique flavors offering and organic products, consumers taste profiles has started to expand. This demand has created a challenge for consumers to find these products at a variety of retailers, across multiple product offerings. Retailers have now started to evolve their own private labels to brand status, by offering better packaging design, unique flavor profiles, and more organic offerings.
- #24 As a response to consumer behavior, grocery retailers have evolved their retail stores from once resembling a sterile type environment…