Amazon’s expansion into the grocery store space, online ordering/delivery (about 25% of grocery stores provide this) and meal kit services aren’t the only current grocery store disruptions. What is disruption? According to Wikipedia, it’s an innovation that creates new markets and ‘disrupts’ an existing market. Here are some examples of grocery store disrupters…
New in-store offerings
**Why grocerants are the future of food shopping
Grocerants are grocery stores offering typical shelf products as well as prepared food. The NPD Group estimates that 40% of us buy prepared food at the grocery store.
**HyVee – disrupting grocery stores with diverse offerings
Des Moines-based HyVee currently has upscale craft beer in one location and is building a store that will have a gym.
**Who will be winners and losers in the Twin Cities supermarket battle?
Cub Foods in the Twin Cities has bars for honey, juices, burritos and ice cream sandwiches and microwaveable dinner in a pouch.
**Why supermarkets are struggling to source local products
Although local foods aren’t new to supermarkets, many like WalMart and Sam’s Club continue to ramp up their local food offerings. Challenges are still supply chains and the definition of ‘local.’ FoodHub, one resource, is a database of suppliers.
Technology in the grocery store space
**Amazon has a patent to block the ability to comparison shop in its stores
Amazon has received a patent to block your ability to comparison shop on your smartphone when you are in an Amazon store.
**5 technologies disrupting grocery stores
Mobile apps are, of course, popular with consumers. Another disruption is emblematic of the Internet of Things (IoT), digital displays that allow consumers to view videos about products and more.
Where people are buying food
**More people buying food at Dollar General
More people are buying food at Dollar General (sales went up 11% in the last quarter). Although prices may be a driver, here’s an interesting datapoint – by the end of this year 75% of us will live within 5 miles of one. Dollar General has expanded it’s snack and drink offerings, increased freezer space and in some locations, introduced fresh produce.
**Are gas stations Wisconsin’s new corner grocery stores?
As supermarkets have left neighborhoods, many folks go to gas stations for their groceries.
**Daily Table – a non-profit grocery store
The Daily Table, established by a former Trader Joe’s president, is selling healthy food at a deep discount. This non-profit grocery store is supported by the PepsiCo and Robert Wood Johnson Foundations and others and is located in a low-income neighborhood. More @ http://dailytable.org/. Originally, the store was going to sell food past its stamped date but decided against this. More info about Daily Table’s food product sourcing @ http://archive.greenamerica.org/Tackling-Food-Waste/Articles/Waste-Not-Eat-Well-Daily-Table.html
Thrive Market – online organics at reduced prices
A membership-based online organic market.
The future disrupters?
**Specialized online delivery services
One future disrupter – grocery store online delivery services that are more localized/regional or based on a relationship with local producers. (Scroll to the end of article)
If you are a retail dietitian/nutritionist and want to keep up with the retail grocery space, consider joining/subscribing to the RDBA (Retail Dietitians Business Alliance) newsletter @ http://www.retaildietitians.com/
or the Supermarket Guru @ http://www.supermarketguru.com/
Want to keep up with your state’s most popular grocery store? Go to http://www.businessinsider.com/most-popular-grocery-store-in-each-state-2017-2
Article originally appeares in the January 5, 2018 issue of the SNEB eCommunicator.