By 2021, the number of traditional supermarkets will decrease by 24.6 percent, but stores that offer fresh-format, limited-assortment and super warehouse formats will see double-digit growth, according to “Future of Food Retailing 2017,” a recent study by Long Grove, Ill.-based consultancy Inmar Willard Bishop Analytics.
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The report also cites that dollar share for the traditional grocery channel will reach 44.4 percent, an increase of 0.2 percent, by 2021, and that shares for nontraditional grocery will drop 0.7 percent to 39.1 percent. The convenience store channel will have a slight increase in shares, reaching 16.5 percent. “However, modest changes are often masked by large fluctuations occurring within the channel,” the report stated, noting the decrease of traditional supermarkets.
The report also stated that grocery ecommerce, led by millennials and time-starved consumers, will grow exponentially as food retailers adopt it faster than other retail sectors have done previously. The report also warned that “trading partners will fail if they try to be all things to all consumers.”
“The key to building market share and increasing loyalty requires one thing: relevancy. All choices must be relevant to the target audience,” according to the report. “Relevancy must be reinforced at every touchpoint along the path-to-purchase continuum. Social media content must focus on relevant activities prior to the start of a purchase cycle. Assortment, merchandising (in-store and online), pricing, promotions and services must all be relevant in order to influence shopper behaviors. Missing the mark in one or two areas will likely result in more ‘channel hopping,’ which further diminishes loyalty.”
SOURCE Store Brands
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