"Simplifying apps, evolving in-store dining and expanding micro-fulfilment will be actively pursued by grocery retailers in the year ahead", says Campbell Rigg.
Is small the new Superstore?
We are observing a decrease in the super-sized stores of the past with new supermarkets being built with a smaller footprint to allow for lower break-even levels and this change of format is more appealing for customers, allowing for a faster shopping experience.
An even smaller version is the pop-up grocery stores that are appearing in low-income locations. These mini-stores are popping up in urban areas that don't have the footprint for a full-size supermarket, they offer fresh and healthy food to locals.
Retailers are seeing a big opportunity with consumers actually buying local. Grocery retailers are putting an extra focus on particular tastes of local communities and the importance of supporting local companies. They are curating an assortment of local products that gives them a chance to rotate and merchandised product frequently to increase customer interest shopping regularly.
We've been analysing the latest growth trends throughout Europe and the near East and believe that there are key areas that have changed consumer behaviour.
Limited time preparation at home has given rise to food grab and go options and the discounters are challenging traditional grocers more than just with discounted prices. There is so much change happening supermarket formats need to create innovative consumer-centric shopping experiences which meet the demands of the modern shopper. That is why we have created the supermarket for 2020.
Private label products continue to show growth in supermarkets. No longer do you see just the cheaper non-brand option. Stores are creating private labels that reflect the grocery retailer's mission and values. Organic and natural labels will continue to see extra growth. Millennials are a big driver for this explosion, as this generation has proven to show less brand loyalty to major brands than with previous generations.
We have identified four priorities for success in 2020.
Trend 1: Premium and speciality private-label rollouts will accelerate
Trend 2: Grocers will go big with micro-fulfilment
Trend 3: In-store dining will evolve - The Grocerant
Trend 4: Retailers will play a deeper role in customer health
A recent Wall Street Journal article connected food retailers' increasing emphasis of store perimeters with flatlining sales of iconic centre store consumer packaged goods brands and underscored that the emerging concept of supermarkets as “grocerants” is maturing into the mainstream.
We advocate the benefits of a best at fresh strategy and the redefinition of quality food consumption.
Grocery retailers like Wegmans, Whole Foods Market, Mariano's and H-E-B's Central Market have emerged as talented grocerant operators bridging the gap between restaurants and supermarkets with high-quality fresh prepared food offerings.
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