The retail analysing talks about how the supermarket industry of the U.S and everywhere else has come under a dramatic modification since the time it has emerged right from 1940’s. Where earlier a single shop would serve their shoppers with beverages and food needs, consumers today are interestingly purchasing groceries from several retail channels.
Back in 1990’s, when this century began, the superlative threat to grocery stores and supermarkets came from warehouse clubs and supercentres. The research from Packaged Facts states that ‘Today, the emerging threat has spread out across all the retail channels which includes, dollar stores, drugstores and of course e-commerce.
Check out these top trends which are changing the landscape of shopping;
- Consumers are purchasing food from various channels
Deloitte’s pantry report says that on an average, people tend to buy stuff from 5 different stores in order to satisfy their needs. These channels consider supermarkets like Safeway and Kroger, supercenters like Wal-Mart, convenience, discount, e-commerce and club. The fact although is that, consumers don’t visit multiple places because they don’t find everything in one store, but this trend is due to the reason that certain stores can offer precise amalgamation of quality, private brands and value.
- The popularity of private label is peaking
The survey done by Packaged facts states that, the sale of private brand grew from 83$ billion to 133$ billion by the year 2016. It primarily grew because of recession, as the house brands tend to be typically cheaper in the Woolies. Nevertheless, it does not compromise on its quality. As almost 80% of people believe that it offers the same quality if not better quality than international brands.
- Product curation is the demand by customers
When a customer is looking for 30 specific items but is faced with 40,000 choices in each, it becomes a hair pulling experience for them. Hence, companies are now focusing on specific customers by scaling back the stores, rather ‘one stop for everything’ approach. This is also the reason that supermarkets today are roughly made in 46,000 sq ft, and since 2006, supermarket’s average sq ft have been falling. So the format of smaller stores is being encouraged. Moreover, the products are very well curated by online grocers, where they urge purchases based on earlier recipes or food allergies.
- Fresh produce happens to be the driving factor for influencing consumer’s choice
According to 75% buyers, produce department is clearly the most essential, followed by poultry, sea-food and fresh meat, in-brand products and bakery, local farm produce, as stated by the survey done by Packaged Facts.
Supermarket is evolving rapidly and so is the grocery buying habits of the consumers. The market today is clearly owned by shoppers and they certainly demand innovative and new experiences, whether it is free check-out shopping or home delivery. Few also think that online shopping instead of going to the super market is overrated, as still many buyers want to touch and smell the food before buying. However, the reality remains the same, the preferences of people are changing and hence putting the supermarkets go under a renowned change.