Progressive Grocer - June/July 2009 - (Page 16)

Grocery List Consumer Insight The Lempert Report Insights From Kalamazoo Gaining the lead in the new economy takes center stage at the 2009 Western Michigan University Food Marketing Conference. By Phil Lempert To learn more about the Western Michigan University Food Marketing Program and Conference, visit www.wmich.edu/ business/fmk/ t the 44th annual Western Michigan University Food Marketing Conference in Kalamazoo, it was to no one’s surprise that the topic of discussion was all about leading and winning in the new economy. I was privileged to moderate a panel of five of the smartest people I’ve met, who exchanged insights in a discussion on consumers in the wake of turmoil. The result was identifying the challenges and opportunities of the food industry for us all. Our panel included Mike Jackson, president and rary?” all depends on [how] you would define tempoCOO of Supervalu, and chairman of National Gro- rary. “Value” has been calibrated; it’s going to stay for cers Association (NGA); Mark Batenic, chairman, pres- quite some time. And, there will probably be another ident and CEO of IGA USA; Jim Wright, chairman, event [to create turmoil]; however, what we’re seeing president and CEO of Tractor Supply; Alex Miller, today is going to be in place until that other event president of Daymon Worldwide; and Craig Sturken, comes to push [it] out of the way. But just remember, executive chairman of Spartan Stores. we got away from value and consumption in a lot of Here’s just a glimpse at the insights: things in this country, and things got a little bit out of Phil Lempert (PL): Is “value” a temporary fad whack. This major calibration is just getting things with consumers, or do we think (or hope) that six to back in line somewhat; this is a calibration from where nine months from now the rules change again? we started. Mark Batenic (MB): Value is here to stay, and I Craig Sturken (CS): There’s more to the equation think value never really left. I just think people put than just price. As a retailer, I think retailers that do more value in being easier with what they were spend- not have an equation that equals a value for the coning when times were easier. But times are tough. The sumer will be in trouble. Going forward, I think the county I live in, in North Carolina, has an unem- consumer has learned to expect value. I think of a ployment rate at 17.9 percent. The fellow across the retailer like Whole Foods. I think that would be an street from me owns a service station, and he knows equation that may be in jeopardy, particularly today the price of milk. I never would have dreamed in a mil- and maybe tomorrow. lion years that he would have known the price of PL: So, building on your idea of that equation, milk. This is how deep the concept let’s look at that value equation that More ONLINE of value is out there today. Whole Foods had five years ago. Mike Jackson (MJ): Yes, I would What would you suggest that was? For additional agree, value is not going away. The discussion highlights, go to CS: When I look at Whole Progressivegrocer.com answer to the question, “Is it tempoFoods, I think of social acceptability, 16 • Progressive Grocer • June/July 2009 A H E A D O F W H AT ’ S N E X T A reasons to shop there that [have] nothing to do with product availability or price, but it’s about the environment and the theatre, which I think are really susceptible in a tough price market. PL: Consumers of all demographics seem to have discovered dollar stores, Save-A-Lot, grocery outlets; and I hear them saying, “I never knew I could save so much.” Are we seeing a new trend in saving for entertainment? Jim Wright (JW): First of all, the consumer that we’ve all known and loved and sold to for 17 years is dead and gone. Seventeen years ago, they saved 8 percent of their income. That went negative in 2005, and now it’s back to 5 percent, so they’ve learned a tough lesson. Consumers are now trading down or they’re trading out entire categories. Businesses [like] Starbucks or Whole Foods were founded on the consumer behavior of trading up or small indulgences. I think those are permanently gone, or certainly for the next several years. The value equation is here to stay. And, I think it’s a period [in which] they would realize that value is an equation of price on top and experience on the bottom. I think that smart retailers and manufacturers will be very much in tune with the fact that consumers’ expectations of value, using that equation, are higher and likely to stay high for a long time. Phil Lempert is one of the nation’s leading trend analysts and consumerologists. He is the food editor of NBC’s “Today” show, SupermarketGuru.com, FactsFiguresFuture.com, and XtremeRetail.com; the host of the syndicated radio show “Shopping Smart”; and an author. He can be reached at PLempert@SupermarketGuru.com. www.progressivegrocer.com http://www.wmich.edu/business/fmk/ http://www.SupermarketGuru.com http://www.FactsFiguresFuture.com http://www.XtremeRetail.com http://www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - June/July 2009

Progressive Grocer - June/July 2009
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Cheese/Shredded Cheese
Market Snapshot: Sacramento-Stockton-Modesto, Calif.
Independents Report: The Advantages of Older Associates
Lempert Report: Food Experts Tackle the Economy
Industry Achievement: The Top 100 Women in Grocery
Multicultural Marketing: 2050 is Today
Retailer of the Year: Celebrating Kroger
2009 Deli/Bakery Operations Review: Shrink-Wrapped
Fresh Developments: Consumer Shifts Create New Complexities for Fresh Food Trading Partners
Produce: Brimming With Possibilities
Meat: Fired Up!
Store of the Month: Giant Eagle’s Express-Ohhh!
Cheese: Cooked Cheese and Other Spiritual Revelations
Beverage Alcohol: A Cup of Cheer
Frozen Foods: Frozen Vegetable Sales are Steaming
Real Estate: Bigger is not Always Better
Technology: At Your Service
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - June/July 2009