Reports show that traditional grocers are increasingly losing market share in the U.S. — some 15% in the past 10 years. What formats are taking the grocery pie?
It’s C-stores, farmers markets, and dollar stores, combined with online food sites.
The Supermarket Guru expert Phil Lempert said at a discussion at South by Southwest Conference that supermarkets will have to offer more services in order to survive and grow.
Here are five ways traditional grocers are evolving to keep customers coming back:
1. The “groceraunt.” Full service restaurants within a grocery store are becoming the norm. Take Illinois’ Mariano’s grocery chain that features an oyster bar and a barbecue stall or Longo’s Corks Beer & Wine bar.
2. Smaller stores. With the average grocery store size shrinking from about 45,000 sq. ft.over the years, what’s hot in formats are new versions of the neighbourhood market or “bodega”. These stock mostly high-end and local foods.
3. More services.With consumers regularly shopping from farmers markets to butchers, supermarkets have to look at hiring experts in their different departments. Be prepared to see skilled butchers and fishmongers cutting meat in the store along with trained chefs, and registered dietitians.
4. Catering to millennials. Lempert says millennials are foodies, who also want “connection and community.” Stores can do the latter with seasonal events, tastings and cooking demos.
5. More ways to get your groceries delivered. Grocers are partnering with tech companies such as Instacart, Google Express, Amazon and Uber, to meet the demand of consumers grocery delivery or in-store pick up options.
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