Progressive Grocer - March 2009 - (Page 20)

Grocery list Consumer Insight The Lempert Report Meeting the Demand of 2009: The Shopper’s Experience Smart shoppers demanding better service and product knowledge will add to retail demands. By Phil Lempert Thanks to reduced overhead and employee costs, stores with a footprint of just 10,000 to 15,000 square feet will be profitable with much smaller volume. I preparing for RFID compatibility. The move underway to build smaller stores (10,000-15,000 square feet), being led by Walt is time to get out our crystal ball again and see just how the Mart and Tesco, may well be the solution. Signifcosts allow retail and food worlds may be affected over the next 12 months. icantly reduced overhead and employeesmaller volthis format to be profitable with much Higher commodity prices. Higher energy costs. Less available ume (and may prove to be exactly the format the aging boomer in particular is lookinvestment credit and capiing for). Having one superstore in a Eating Healthy on a Budget tal. Add to those a more community, with dozens of these would satellite stores dotting neighbordemanding and smarter shopper, Which, if any, are ways youall that look to save money on food? (Respondents could select apply.) hoods that allow shoppers to walk and combined they will all make and shop more frequently will ceritems on sale 87 percent tainly be tested over the next year for a very different year ahead for Purchasemeals at home Prepare 83 percent — and I would suggest it is the winthe supermarket industry. Use coupons 73 percent ning formula in many locales. Make a shopping list 72 percent In 2008, shoppers used more coupons, bought Now that “sticker shock” seems Use frequent shopper program 56 percent more store brands and started using shopping lists to have been accepted, people are Prepare simple meals 49 percent again. These “learnings” will stay with many of these buying foods that are satisfying their Compare store circulars 44 percent shoppers through their lifetimes, the same way our palates. In the same survey for Stock up on frozen, canned, packaged foods 43 percent grandparents who lived through the Depression held Reader’s Digest Entertaining Group, Plan meals in advance 43 percent on to many of the values learned through that expe72 percent of people said they were SOURCE: SUPERMARKETGURU.COM QUICK POLL, JANUARY 2009. 1264 RESPONSES; 78 PERCENT FEMALE. SUPERMAREKTGURU.COM rience. At the same time, shoppers have become bored with the foods they were eatsmarter — they are reading more labels and asking ing, and wanted more new products more questions. They are also demanding better accountability — and those who offer both will and more new recipes. Look for the winners in all catservice and want to be heard, adding new challenges win. In the short term, we have seen a rise in store egories to be those national brands that innovate for retailers trying to hold down payroll costs. brands as a cost-saving tool, and some consumers (think Healthy Choice’s steamer line of frozen foods) In a recent consumer survey we conducted for have found hidden treasure and may well shun or bring in new flavors (Budweiser Chelada) to satReader’s Digest Entertaining Group, 72 percent of some of their former favorites in favor of a cheaper isfy convenience and flavor, and also stick within shoppers said they will continue to use the shop- alternative. But for most shoppers, innovation and the constraints of our new value equation. ping strategies they’ve discovered over the past six brands are what they are looking for — and those 2009 may well be challenging, but those brands months even when the economy recovers and make retailers that offer good value on the leading brands and retailers that focus on listening to the shopper them a part of their everyday habits. The rules have will have their shoppers satisfied. and truly delivering on their needs will prosper as changed and, more than ever, the consumer is the With higher costs and lower available capital, their competitors weep. commander of the shopping experience. many retailers will be struggling to keep their operMy recommendation to retailers and manufac- ations at an acceptable level (acceptable to both Phil Lempert is one of the nation’s leading trend analysts and turers is that now is the time to their shoppers and themselves). At consumerologists. He is the food editor of NBC’s “Today” More ONLINE strengthen your relationship with the same time, many stores are in show, SupermarketGuru.com, FactsFigures Future.com, For additional your current customers and reach need of new technology at the front and XtremeRetail.com; the host of the syndicated radio consumer insights, go to out to new ones. People are nervous end to comply with the new show “Shopping Smart”; and an author. Progressivegrocer.com and looking for stability and extended bar code, as well as He can be reached at PLempert@SupermarketGuru.com. A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com 20 • Progressive Grocer • March 2009 http://www.SupermarketGuru.com http://www.Future.com http://www.XtremeRetail.com http://www.Progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - March 2009

Progressive Grocer - March 2009
Contents
Front End: Ahold Banners Launch 'Major Consumer Wellness Initiative'
Nielsen's Shelf Stoppers/Spotlight: Frozen Foods/One-Food Oriental Entrees
Market Snapshot: Miami-Ft. Lauderdale, Fla.
Independents Report: The New Agenda at FMI - And in Washington
Lempert Report: What Shoppers Will Demand in 2009
Wake-Up Call: Back to the Future
Progressive Views: Looking Forward
Frozen & Refrigerated Trends: Staying Cool
Store of the Month: Straub's Newest Family Member
FutureView Introduction: Great Expectations
Futureview: Magnetic Core
Honey: Sweet Sensation
Organic/Natural Cereal: The New Face of Breakfast Sales
FutureView: Home-Cooked Homecoming
2009 Meat Operations Review: Solid Ground
2009 Seafood Operations Review: Rough Seas
Pharmacy: A Destination for Health
Technology FutureView: Retail 3.0
Equipment FutureView: Sustainable Differentiation
What's Next: Editors' Picks for Innovative Products

Progressive Grocer - March 2009