the changing retail landscape
TRANSCRIPT
TheChangingRetailLandscape
Dr.JohnL.StantonProfessorofFoodMarketingSaintJoseph’sUniversity
Afterbeinginthefoodindustryforthepast40yearsIbelievetherehavebeenmoresignificantchangesinthepast5
thantheprevious35
Whowouldhavethought5yearsagothatthelargesthotelchainwouldbe
Airbnborthelargestretailer
AlibabaOrthelargesttaxi/limocompany
Uber
It’sawholenewworldoutthere.
FamilySize• Womenwantsmallerfamilies
• Therateofvoluntarychildlessnessisrising,makingDINKs(DualIncomeNoKids)avaluablemarketsegment
SJU Food Marketing
SandwichGeneration• Sandwichgeneration:adults
whocarefortheirparentsaswellastheirownchildren
• Boomerangkids:adultchildrenwhoreturntolivewiththeirparents
– Spendlessonhouseholditemsandmoreonentertainment
SJU Food Marketing
TheHispanicpopulationwillincreaseby167%versusnonHispanic
whiteby1%
Millennialsaredifferent
Ifmostofyoursaleshavebeengoingthroughtraditional
supermarketsyouaresellingtoadecliningmarket
Retailisgoingthroughanunprecedentedperiodofrapid
dynamism- andthisisprimarilyduetoachangingshopper.- PlanetRetail
EveryoneWillTryTo
SellConsumersTheirNext
Meal
Keytrendsdrivingconsumers:convenience,
value,health&wellnesspersonalization.
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Supermarkets Masschannel Drugstores Conveniencestores* Warehouseclubs Valuechannel
US:ChannelSizesbySales,2007-2017f(USDbn)2007
2012f
2017f
Some channels are no longer ‘alternative.’
Once considered ‘alternative,’ the warehouse club and value channels are growing sales faster than traditional channels, i.e. supermarkets and supercenters (mass).
*Note: Convenience store sales represent merchandise sales onlySource: US Department of Commerce, National Association of Convenience Stores and Planet Retail
Supermarketsalsohavefewershoppingvisits!
Downto1.2timesaweekfromasmanyas3timesaweekjustafewyearsago
Whatdoesthismeantocandy!Fewer“impulse”occasionsLesstimespentshopping.
MassMerchants
Consumersareturningawayfrombig-boxstores- thecorechannelformost
oftheleadingfoodcompanies.-PlanetRetail
• Walmarthaveleveled
• Expectedgrowthrate($sales)expectedtodeclineto2020to1.9%
• Theretailerisshuttingdown269storesgloballythismonth,includingall102ofitsWal-MartExpressstores.
Letslookathowtheseconsumerchangesareeffectingretail
Small box stores are growing…fast
Pharmaciesaresellingmorefoodeveryyear!
Whereareallthesupermarketshoppersgoing?
NPDreportsthattheaveragenumberofvisitsconsumersmadetoac-storeinanaverage30-dayperiodgrewto6.4comparedto1.5forsupermarkets
Couponsarebeingprintedforimmediatepurchaseinsidethestore!
TVhomeshopping
• HSNandQVCarealreadyintofoodbutjuststarting.
• Oneshowsold$1millioninofpastasauce30minutes!(at$14.00ajar)
WhatdoesHSNsell??
• Appetizers&Sides(15)
• Beverages(77)
• Bread,Muffins&More(7)
• Brownies,Cakes&Cupcakes(92)
• Chocolate&Confections(50)• Coffee&Tea(20)
• Cookies(25)
• Entrees(33)
• FoodStorage(14)
• Fruits&Nuts(13)
• Meats&Poultry(55)
• Mixes(45)
• Sauces&Seasonings(10)
• Seafood(9)
• Sweet&SaltySnacks(36)
For only $48 and $7 shipping
Whataboutsubscriptionservices.
Ifyouarenotcomingtothestoreregularlysendittothemregularly!
20FantasticSubscriptionBoxesEveryoneNeedsRight Now
http://www.buzzfeed.com/kherhold/the-20-best-subscription-boxes-og3b#.uuydmKN7Z
BlueApronWhereisthesweets?
Fresh,nutritiousmealsandsnackspreparedbyouron-sitegourmetchef.
Home-styleMealsAvailableforTakeout
• 1700Kindercare Do you think mothers mightValue a brand calledKinder Care brand food for Kids
YahooDem
Office DeliveryAustinGrocer.Com works regularly with businesses to offer office delivery options, including healthy lifestyle snacks and drinks fit to your company's needs. Something a vending machine wont give you
Companies like Campbell soup in involved
Supermarkets in Airports?The new 300sqm supermarket, operated by the BILLA chain, is located between terminals 1 and 2 to ensure maximum convenience for airport customers and visitors.
AirportFreshProduce
AproducestandatMinneapolis-St.PaulInternationalAirport’sDeltaterminal.
AproducestandatLaGuardiaAirportinNewYorkCity
Forgetabout
smoothiesHealthclubsare
nowwooingwithfancy
cuisine
VendingWillBeUbiquitous
• Surecandyhasalwaysbeeninvendingmachinesbutnotlikethese.
SupermarketVending
FrontLobbyNowyoucanbe24hours!!
HomeCentersaresellingfood.
PlacessuchasStaplesandOfficeDepotaresellingmorefoodeveryyear.
How much do they sell?•Caramels (26)•Chocolate (211)•Gum (54)•Gummy & Sour Candy (225)•Hard Candy & Lollipops (174)•Licorice (14)•Mints (235)
HowaboutTruckstops
• TravelCentersprovidesprofessionaldriversservicesforthelonghaul.Thecomplexdesignincludesgasoline,foodservice,retail,entertainment,andotherroadsideconveniences.
TravelCenters
CollegeBooksstores
• Thinkcollegestudentseatalot?
• Drinkalot?• ThinktheygototheSupermarket?
• ThinkBookstoresmightwanttomakemoremoneyason-linestealstheirbooksales
TheElephantInTheRoomE-commerceSocialmedia
GetCouponsOrPromotionalMessagesInTheAisle!
French grocer Casino undertook a first trial of its digital shopping wall in Lyon in October 2012.
Tesco South Korea caused a stir in 2011 with a QR code wall – enabling shoppers to add items to online baskets by scanning the code. Orders were then delivered that evening. Test locations included a subway in Seoul (above).
Online grocery retailer Ocadolaunched a virtual shopping wall at the One New Change shopping centre in London in August 2011.
Areyouignoringtheemergingdistributionforfood?
• Areyouputtingalltheireggsinonebasket
DarwinHasOftenBeenMisquotedAsSaying‘OnlytheStrongestSurvive.’
However, what he really said was “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.”
Charles Darwin (1809 - 1882) The Origin of Species 1859