Tag Archives: supermarket trends

Top 10 2017 Industry Disruptors

Events or actions that had a significant impact on the retail food business this past year, as published by SupermarketNews:

  1. Amazon’s purchase of Whole Foods Market
  2. German discounter Lidl entering the U.S. market
  3. The granularity of data and the speed with which it can be converted into insights and action
  4. The new position of Chief Digital Officer, reflecting the desire to find new ways to enhance the customer experience in the modern shopping environment
  5. The proposed mega-merger between CVS and health insurance provider Aetna
  6. Private label growth — a marked boom in store brands
  7. Plant-based alternatives to dairy: 58% of adults now drink non-dairy milk
  8. The hyperactive hurricane season disrupted retail operation in the gulf-and-south regions, and also demonstrated how adept food retailers have become at responding to natural disasters
  9. Blockchain technology, which is designed to provide real-time, public information on food products as they travel through the supply chain from producer to store

Food Waste!

In a recent video report, Phil Lempert, “Supermarket Guru,” referenced a United Nations’ Food & Agriculture Organization statement indicating one-third of food gets spoiled or wasted.

That translates to approximately $1 trillion per year, or double the dollar volume of the grocery industry as a whole!

As you are most likely aware, to reduce food waste we have to control environmental conditions including temperature, moisture levels, and UV exposure all across the supply chain including on shoppers homes.

The Spoon reports that a group of researchers led by Giovanni Salvatore at ETH Zurich have developed a biocompatible microsensor that can be directly applied to food and is safe to eat. The sensor is made from a combination of edible materials such as magnesium and a compostable polymer made with corn and food starch.

But there is a problem – making them is currently very expensive, compared to pennies or even fractions of pennies for traditional RFID tags.

However, Salvatore predicts that these biodegradable sensors will be part of our everyday lives within 5 to 10 years.

Robots in the Aisles?

A recent video and report by Phil Lempert, founder of supermarketguru.com, shared information about “Tally,” a robot that will be working the aisles at Schnucks looking for items that are out of stock and checking on prices.

The robot is being tested at a store in the Richmond Heights area of St. Louis, the article says. A second will be tested at another store in the Kirkwood area. The tests are expected to last about six weeks.

Tally weighs about 30 pounds and stands at 38 inches tall and has sensors to avoid bumping into things like shoppers and carts. It scans the shelves and notifies the store personnel when quantities are running low.

A new component of the digital trend?

Grocery Shopper Decisions at the Shelf?

A recent SupermarketNews article shared some interesting insights into how grocery shoppers are making decisions with respect to making healthier choices.

The primary factors influencing these “at the shelf” decisions include:

  • Concerns about impact on personal health/well-being
  • Desire to know exactly what ingredients go into their food
  • Environmental impacts
  • Do not want to support suppliers that use of genetically modified organisms (GMO’s)

While the study also showed an increasing number of shoppers relying on online-only retailers, (a trend led by Millennials), they’re selecting a narrow range of products online, such as household cleaning products, and continue to buy fresh bakery and produce items in-store.

 

Supermarkets, FDA React to the Coast-to-Coast Demand for Healthy & Fresh Choices

According to a recent SupermarketNews article, supermarkets are offering healthier and smaller fresh snack options.

Chains on both coasts are reacting to consumer demand for the same level of quality and freshness in their snacks that they demand from other prepared foods.

For example, Roche Bros., a 20-store chain based in Wellesley, Massachusetts has responded to the increased interest in fresh, prepared snacks by offering “salad toppers,” which are displayed alongside prepackaged salads. The small containers, which sell for about $2.50 to $3, include varieties of shrimp, chicken, steak tips, hard-boiled eggs and other proteins that are designed for either combining with a salad or eating as standalone snacks.

“It allows people to get a quick bite of protein on the go, without spending a lot of money,” said Adam Laliberte, kitchen director.  “There’s definitely an increase in demand for little bites to eat.”

Similarly, KeHE Foods’ Monterrey, Calif., fresh foods division has rolled-out a new line of cheese-based fresh snacks to about 50 retailers, said Amber Mahin, director of marketing and merchandising.

“They have proven to be very popular,” said Mahin. “The trends we are seeing are fast, fresh and healthy. People are eating smaller meals and meals with less calories.”

It seems like the U.S. Food and Drug Administration (FDA) may be providing support to health-conscious consumers as well, as their final rule for the new menu labeling provision of the Affordable Care Act has been published. This new law will impact supermarket deli and bakery departments for chains of 20 or more stores operating under the same name. Labeling will be required for restaurant-type food such as:

  • Made-to-order sandwiches, ordered from a menu or menu board at a grocery store
  • Food items shoppers serve themselves from a salad or hot food bar at a grocery store
  • Grab-and-go items such as muffins at an in-store bakery

3 Trends Impacting Supermarkets

In a recent article published by ECRM, a support organization that provides business solutions to retailers by integrating process, vision and technology, three key trends were identified as having a significant impact on the grocery retail field:

“The U.S. food retailing business has never been more competitive, the article said. “A number of trends are putting pressure on food retailers of all stripes…”

The article went on to suggest that the food retail business is evolving and “the customer is king!” Data from a study done by Packaged Facts was also shared, identifying three key trends as “shaping” the food and beverage retail market:

  • The incursion of e-commerce onto the food retailing landscape
  • The evolution and expansion of contactless payment options
  • The rise of the smaller store formats

Read the full article…

Supermarkets of the Future Fast Approaching!

Several past posts have shared details about radical new changes that are being tested by various supermarket chains.

Well, the trend seems to be continuing according to a recent NY Post article, which gives the scoop on Amazon’s latest innovation: a two-story, automated grocery store in which a staff of robots on the floor upstairs grabs and bags items for shoppers below!

The “futuristic prototype” is based on the recently unveiled “Amazon Go” convenience store, “with a bigger layout that could span anywhere between 10,000 and 40,000 square feet.”

The article goes on to explain that Amazon’s plan is to stock these bigger stores with items people prefer to see before buying. In addition, these bigger stores are expected to operate with fewer  employees – possibly as few as 3 to 10 workers per shift!

Read the full story… 

5 Emerging Trends That Demand Improved Supermarket Efficiency

“Shifting consumer lifestyles and habits are creating new challenges for food retailers,” says Topco in a recently released e-book.

The book goes on to suggest that supermarkets must successfully improve efficiencies and reallocate indirect spend monies to areas that will yield the highest returns for their needs in the face of today’s rewritten grocery industry landscape.

The authors list the following five trends with the greatest potential to affect your profits:

1  Experiential shopping
2  In-store restaurants
3  Digital marketing
4  Online grocery shopping
5  Gourmet, organic, and sustainably-sourced foods

See e-book… 

Supermarkets of the Future – Happening Now!

Earlier this year we shared several posts about the “supermarkets of the future,” in which several predictions were made such as the emergence of more tasting stations, more interactive displays, less waiting at check-out, and food deliveries made by robots!

Since then, many of these predictions have become realities, although not necessarily all in one place – at least until now!

A “supermarket of the future” has been opened in Italy according to a recent SupermarketNews article, which incorporates many of the features listed above and more!

The largest Italian supermarket chain, Coop Italia, has opened the store near Milan.

“The 11,000-square-foot store is built around the ideals of innovation and transparency… and merging physical and digital by augmenting a traditional food market with interactive displays and smart shelves designed to make shopping more relevant and personalized,” the article said.

The fact that this “future” store is located in Europe supports a belief shared by numerous industry experts, that being that European supermarket trends are slightly ahead of those in the U.S.

Read the full article…

 

3 Supermarket Shopping Demands & the “War on Big Food”

With more and more consumers becoming informed about the health benefits of natural and organic food products, it is inevitable that grocers will need to increase their fresh produce selections and increase their marketing efforts around these departments, which are typically located in the perimeter areas within their stores.

According to a recent article published by KDM P.O.P. Solutions, three specific consumer demands will reshape the typical supermarket over the next several years:

  • Healthy and natural
  • Local and fresh
  • Organic and unprocessed

These consumer demands will continue to rise and this trend effects the whole grocery shopping experience, the article suggests, noting that 75% of consumers choose which retailer to do their shopping at based on the store’s produce department.

And according to Supermarket News, 43% of health conscious consumers choose a shopping destination based on their organic food selection, while 32% seek foods grown locally, and another 28% look for natural, fresh foods.

Shoppers are indeed skipping the middle aisles, where most all “Big Food” packaged brands are located, and heading toward the store’s perimeter, where fresh foods are found.

Steve Hughes, a former ConAgra executive who now runs natural food company Boulder Brands, believes so much change is afoot that we won’t recognize the typical grocery store in five years. “I’ve been doing this for 37 years,” he says, “and this is the most dynamic, disruptive, and transformational time that I’ve seen in my career.”