Tuesday, August 14, 2012

Are Metro AG, The Tengelmann Group, and Marks & Spencer looking at United States for Growth?

“Shallow Shoppers” pose an additional risk for Safeway, Supervalu and Kroger. Three of the United States largest grocery store chains faced with underfunded multiemployer pension plans have a growing drain on cash flow and earnings reported Jon Springer in Supermarket News.  When combined with an exposure to “Shallow Shoppers” the risk of takeover would appear even greater.

Safeway, Supervalu and Kroger just might be getting another look from Metro AG, Marks & Spencer, Carrefour, or The Tengelmann Group.  While Europe’s largest retailers prepare for an economic slowdown on their home turf could they be looking at Supervalu as the next opportunity? 

The Tengelmann Group has learned lessons of retailing in the United States and now understands what it takes to convert a legacy chain that is out of step with consumers into one with contemporary relevance.  Tengelmann Group is an outstanding multi-concept food retailer with a global reach.  If not Supervalu, Kroger are they looking at Safeway?

Metro’s new CEO Didier Fleury is looking for growth as well.  Will these three chains in the United Sates all with “Shallow Shoppers” be a target?  Don’t forget that the Carrefour Group is repositioning for growth right now as well.

Shallow Shoppers as defined in “The Commitment Economy” survey of over 39,000 people in 17 markets as “consumers which would love to shop at a better quality retailer, but who are unable to because of alternatives are too far away or too expensive”.  Leveraging new ownership with grocerant niche positioning will provide the platform for shallow shopper conversion.

All retail food brand managers will become more and more familiar with the term Shallow Shoppers as they target additional market share.  Growth in top line sales and bottom line profits are realized by making a quality differentiated product with consumer relevance accessible to additional markets and consumers. Do you have Shallow Shoppers?  Why? What are you doing to edify your brand and products with consumers? 

For international corporate presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant

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