Friday, June 5, 2009
The price, value, service equilibrium continues resetting right now it seems that Supermarkets / Grocery stores are winning, they are becoming Grocerants. Restaurants and Convenience stores seem to be following by traffic is up at convenience with few new product roll out, it must mean price is a driver of traffic. With the up surge in sales of ready to eat and ready to heat food niche all players are in a mad race to find new sale drivers via new food products lineup. The consumer is always looking for new product, packaging and attractive price points, in turn restaurants, C-stores and grocery need incentives that will drive traffic. All have noticed a discontinuity in consumer food shopping behavior and all are fighting for share of stomach. Contributing to this displacement is a focus by restaurant chain leaders on short term market metrics and away from the consumer. Which in turn has caused a loss is consumer traffic. The consumer then turned to the grocery store hot food section (ready to eat). The problem is the grocery stores were not ready for it. The have dropped the ball, food quality is slipping and they do not understand customer service in the hot food ready to eat niche! The consumers will not stay long if things don’t improve rapidly. The battle for the consumer dollar continues.