The Ways Grocery Shopping Is Changing Forever03/03/2015
The grocery industry is undergoing some of the most changes since supermarkets emerged in the 1940s, according to retail analysts.
Whereas a single store once served all of shoppers’ food and beverage needs, consumers are now buying groceries across more than a dozen retail channels.
Here are some of the top trends that are changing the grocery shopping landscape
Consumers are shopping for food and beverages across multiple channels.
On average, consumers shop at five different types of stores to fulfill their grocery needs. Examples of shopping channels include supermarkets, supercenters, discount, convenience, club, and e-commerce stores. In fact, consumers aren’t hitting multiple stores because they can’t find everything they need in one place. The trend is driven by the fact that few stores offer the precise mix of value, quality, and private label brands that consumers are looking for.
Private label is gaining popularity.
Sales of private-label groceries are projected to grow 62% in 2016, according to a Packaged Facts survey. The growth can primarily be attributed to the recession, since house brands are typically cheaper. But private label isn’t just about price — it’s also about quality. “More than 90% of consumers believe private-label solutions offer the same or better value versus their national brand counterpart, and more than 80% believe the quality is the same or better”.
Shoppers want more product curation.
When a customer walks into a store of 40,000 items and only wants to buy 30 of them, that’s a terrible customer experience. Companies are now scaling back stores and getting them more focused to specific customers. Online grocers have web tools to curate products for customers. The tools can recommend products based on previous purchases, recipes, or even food allergies.
Fresh produce is a main driver for consumers in deciding where to shop.
Seventy-five percent of consumers say the produce department is the most important, followed by fresh meat, poultry, and seafood (60%); store brand products (36%); local farm foods/produce (35%); and the in-store bakery (29%).
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