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    SC WD19 CS1-3a JakhiBryant 2

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    JakhiPlayz Gamez
    Green Market Grocery needs to adapt to changing consumer trends to continue growing. Consumers now prefer shopping locally-sourced and fresh products. They also increasingly use online grocery shopping and delivery services. To stay competitive, Green Market Grocery should focus on local products, expand their online and delivery options, and offer in-store experiences like prepared foods and cooking demonstrations. Research shows consumers are making fewer grocery trips and spending more on meat and seafood compared to other categories. Unless Green Market Grocery adapts, the future will bring challenges.

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    SC WD19 CS1-3a JakhiBryant 2

    Uploaded by

    JakhiPlayz Gamez
    39 views5 pages
    Green Market Grocery needs to adapt to changing consumer trends to continue growing. Consumers now prefer shopping locally-sourced and fresh products. They also increasingly use online grocery shopping and delivery services. To stay competitive, Green Market Grocery should focus on local products, expand their online and delivery options, and offer in-store experiences like prepared foods and cooking demonstrations. Research shows consumers are making fewer grocery trips and spending more on meat and seafood compared to other categories. Unless Green Market Grocery adapts, the future will bring challenges.

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    Green Market Grocery needs to adapt to changing consumer trends to continue growing. Consumers now prefer shopping locally-sourced and fresh products. They also increasingly use online grocery shopping and delivery services. To stay competitive, Green Market Grocery should focus on local products, expand their online and delivery options, and offer in-store experiences like prepared foods and cooking demonstrations. Research shows consumers are making fewer grocery trips and spending more on meat and seafood compared to other categories. Unless Green Market Grocery adapts, the future will bring challenges.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    39 views5 pages

    SC WD19 CS1-3a JakhiBryant 2

    Uploaded by

    JakhiPlayz Gamez
    Green Market Grocery needs to adapt to changing consumer trends to continue growing. Consumers now prefer shopping locally-sourced and fresh products. They also increasingly use online grocery shopping and delivery services. To stay competitive, Green Market Grocery should focus on local products, expand their online and delivery options, and offer in-store experiences like prepared foods and cooking demonstrations. Research shows consumers are making fewer grocery trips and spending more on meat and seafood compared to other categories. Unless Green Market Grocery adapts, the future will bring challenges.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 5

    TRENDS ANALYSIS

    for Green Market Grocery

    This file created specifically for Jakhi Bryant


    Overview
    In the past year, the grocery retail environment has changed dramatically. No longer can chains expect a
    solid 2–4 percent growth annually. Like other types of retail, consumer groceries are trying to stay steady
    in turbulent times. However, the best response now is innovation, not complacency. Unless companies
    like Green Market Grocery reconsider their strategies, the near future will be full of challenges, all of
    them difficult to overcome.
    This report identifies the major trends for grocery retail in the coming year and offers insight into how
    Green Market Grocery can take advantage of them to continue to grow and profit.

    Local and E-
    fresh Commerce

    Shopping
    Meal kits
    and more

    Focus on Local and Fresh


    Consumer attitudes and shopping behavior are undergoing a transformation. Consumers define value in
    new ways, including private or specialty labels and brands. They seek foods from local or regional
    sources and are eager to support small and medium-sized local producers. Today, small producers are
    netting more than 60 percent of the branded goods market. 1
    For Green Market Grocery, this consumer preference means stores will have to rotate produce, seafood,
    and other fresh foods more frequently to reflect local
    availability.
    Nadia Crane writes in Grocery
    Consumers also show a preference for healthy, natural Today, “Samples of fresh and
    foods and those with minimal processing. Green Market prepared foods are big draws.
    Grocery already caters to these consumers in their front-of- Inviting local vendors to host
    store displays, which feature colorful produce in an small kiosks creates a festive
    attractive, inviting environment. atmosphere and let them
    showcase their goods.”
    1
    Small producers are those ranked below the top 100 producers.

    This file created specifically for Jakhi Bryant


    The challenge for Green Market Grocery will be to continue the seasonal, market-stand look throughout
    the store and figure out how to sell fresh food online, a venue grocery shoppers are starting to use with
    increasing frequency.

    Online Grocery Shopping


    Home-based digital assistants could have a major effect on grocery retail. From the comfort of their home
    or office, consumers can place orders for delivery using their digital assistants. The convenience is ideal
    for shoppers, but it leaves retailers feeling the pinch, even if consumers are ordering goods from their
    stores. Retailers are losing out on the impulse buys that pad grocery sales.
    To stay competitive, traditional grocery stores can do the following:

     Add online shopping and delivery services.


     Devote more store space to the types of goods that drive consumers to the stores.
     Host events for contemporary consumers.
    Devon & Company found that consumers want fresh and prepared foods, enjoy specialty and local
    brands, and are attracted to cooking demonstrations and in-house farmer’s markets.
    While investing in e-commerce and improved service models is a sound strategy, Green Market Grocery
    must determine whether they can avoid lowering their shelf prices. This puts pressure on the supply chain
    and the retailer to cut costs in other areas. Stores should continue to fund the most profitable areas and cut
    back on marginal activities, even if they are in the traditional realm of grocery offerings.

    This file created specifically for Jakhi Bryant


    In-Store Experiences
    Along with addressing e-commerce innovations that offer consumers more ways to shop, grocery retailers
    can do more to attract shoppers to their physical stores.
    Payment services: Consumers increasingly expect to pay for groceries using their smartphones. Stores
    should already be setting up mobile payment stations in checkout lanes.
    Dining: Sampling stations offering hot and cold food are popular, as are cafés that provide coffee, tea,
    and other beverages along with a light lunch.
    Prepared and artisan foods: If consumers switch to purchasing staples through e-commerce, stores can
    free shelf space for products shoppers find enticing or exciting. Local chefs demonstrating how to use
    local artisan foods is a winning activity in many locations.
    Sustainability: Consumers want to know where their food comes from and how it was produced or
    grown. They prefer to find that information in the store rather than online. For example, some stores are
    displaying signs or maps indicating the number of miles a particular product traveled.

    Subscription Meal Kits


    While stand-alone companies popularized the trend of mail-
    order meal kits containing ingredients and recipes for a
    complete meal, grocery stores are starting to do the same.
    More food retailers will expand into meal kits, a $5 billion
    business last year.
    Kits that focus on custom lifestyles, such as vegan and
    vegetarian meals, low-carbohydrate diet offerings, and healthy,
    garden-fresh options are growing in popularity. Other
    companies are offering theme kits, such as those featuring food
    of a certain region or country, and special recipes designed for
    kids.

    Research
    Devon & Company conducted research to determine the state of the retail grocery business this year. This
    section summarizes those findings.

    Grocery Shopping Habits


    In an online survey, we asked adults in the United States how they buy their groceries. About 990 people
    responded. Of the respondents, 92 percent buy their groceries in stores, down from 97 percent in the
    previous year.
    Shop in stores 92%
    Order online 20%
    Order ahead and pick up 10%
    Use a delivery service 8%
    Use a mobile app 6%

    This file created specifically for Jakhi Bryant


    Store Visits
    We also asked U.S. adults how many trips they made to the grocery store each week. The following table
    compares the results to two previous years.

    Year Number of trips


    2019 2.2
    2020 1.8
    2021 1.5

    Expenditures
    Finally, we asked respondents to estimate their expenditures on the four most popular categories of
    grocery items in the past year. The following table shows the results.

    Category Expenditure ($)


    Bakery 1,020
    Meat and seafood 2,215
    Fresh produce and dairy 910
    Packaged foods 955
    Total 5,100

    For more survey results, contact [email protected]

    Devon & Company Consultants ∙ devon.cengage.com

    This file created specifically for Jakhi Bryant

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