What We're Talking About

Top 4 Supermarket Trends

BY: Christofer Oberst | DATE: April 16, 2014

We're only four months into 2014, but we've already seen some of the biggest supermarket trends and headlines for the history books. As we look toward the rest of 2014, let's take a brief look at some of these trends and how they've already made a lasting impact in the rapidly changing industry…

1. Consolidation: It almost seems like we've seen some kind of merger and acquisition activity every other week. Not only that, but these deals have been some of the biggest we've ever seen. Safeway and Albertsons, anybody? Off the top of my head, other huge deals that have happened this year include Sobeys' sale of 30 stores in Canada, Safeway's sale of Dominick's and its subsequent acquisitions, Whole Foods acquires 4 New Frontiers National Marketplace locations, the list goes on, and I expect it will continue to go on well into the year.

And why wouldn't it? Further consolidation means there will be less competitors, which means increased market share. Interest rates are cheap and companies love to grab as much of the market as they can to get an edge on the competition. So, who's next?

2. Fresh produce is increasingly important for consumers: According to Business Insider, more and more consumers are looking for retailers to deliver on fresh produce over any other product in the store. It is the main driver in deciding where to shop. According to a Packaged Facts survey, 75% of consumers say the produce department is the most important in any supermarket. It wouldn't be too surprising to see more retailers focus more on fresh produce aisles in the near future.

3. E-commerce: Online grocery shopping is growing fast and looks to be evolving into a big contender against the traditional supermarket. Just within the last month, AmazonFresh has announced plans to expand its service to 30 - 40 U.S. markets in 2014 along with a new private fleet of trucks to support this expansion. Instacart, another up-and-coming online grocery delivery service, also announced its expansion into the West Coast.

Just recently, FreshDirect was named as the best online grocer, even above tough contenders like Safeway and Google Shopping Express! Need I say more? It's clear that online shopping is delivering on convenience, and more and more consumers are gravitating towards that. The question that remains is whether the traditional retailers are willing to up their game against the digital competition.

4. Smaller store formats: More retailers are looking toward smaller store formats to compete with dollar stores and take share away from some of the big-box stores. Early this year, Target announced plans to construct TargetExpress, a 20,000 square foot store located nearby the University of Minnesota - about 15% of the size of the company's regular stores. Last month, Wal-Mart opened its first Wal-Mart to Go store, which combines a convenience store, grocery, and a quick-serve restaurant all in 2,500 square feet. We've even seen Kroger, Food Lion, Giant Eagle, and Sobeys test out their own versions of the "express" store last year. Who else will enter the ring? Will we start to see less big box stores?

Link to full article: http://www.andnowuknow.com/shop-talk/top-4-supermarket-trends-2014/11462/christofer-oberst?blast=11461&utm_source=ANUK&utm_campaign=751d18b5e7-ANUK_Newsletter_0416144_15_2014&utm_medium=email&utm_term=0_05a0621836-751d18b5e7-14926369

 
 
© Copyright 2017 Golden Sun Marketing, Inc. All Rights Reserved.