The focus of Uwins’ comments is fragmentation.
“Markets are fragmenting,” he explains. “After decades of consolidating market share, major packaged grocery brands are losing share in market after market. And not to the next big brand, but rather to a plethora of small, niche brands and store brands, which better-fit consumer needs and desires.”
His article goes on to suggest that grocery is increasingly available everywhere, and at anytime: from farmers markets to supercenters, and from your finger to your door. He also referenced data presented earlier this year by The Food Marketing Institute indicating that nearly one in ten people don’t even consider themselves having a primary grocery store, which represented a threefold increase from 2013.
Given the many choices today’s food shopper has — such as on-line shopping, buying food at so many different types of stores such as pharmacy or “big box,” it can only become more difficult for traditional supermarkets to corral customers into buying in one primary location.
So, what do you think will be the winning strategy? Does the “fragmentation” prediction ring true?