Consumer surveys show economic pressures are taking a toll on how Americans grocery shop: 2008 and beyond promise to be challenging years for food retailers as consumers cut back spending in the face of tightening household budgets. At the same time, changing demographics, greater health awareness and channel surfing are impacting where and how consumers shop for food. Meanwhile, although supermarkets are still the dominant force in food retailing, economic, demographic, lifestyle and technological changes are creating a fertile environment for new concepts—from Safeway’s Lifestyle Stores to Tesco’s 2007 launch of its Fresh & Easy convenience store chain—that promise to entice food shoppers, capture market share and indeed re-invent the grocery industry. In the process, many food retailers are morphing into foodservice operators as they take back market share lost to restaurants, whether through enhanced prepared food selections or through actual in-store eateries.
The Future of Food Retailing in the U.S. analyzes these and other market-altering shifts in retail food channels, identifying the following Top 10 Trends: Multi-Channel Shopping, Retailers as Restaurateurs, Lifestyle Stores and Emerging Formats, Thinking Small (in terms of store size), Store Brand Building, Focusing on Fresh and Natural/Organic, Health and Wellness, Going Green, Tapping Ethnic Markets and In-Store Media. For each of these trends, the report provides detailed analysis and case histories, pinpointing opportunities and strategies retailers and consumer packaged goods marketers can use to protect and grow their businesses during 2008 and beyond.
Within this analysis, the highly competitive retail marketplace for foods and beverages is examined across all channels including Traditional Grocery (supermarkets, ethnic supermarkets, natural food stores, limited assortment stores such as ALDI, traditional small grocery stores and gourmet/specialty stores), Value (supercenters, mass merchandisers, warehouse clubs and dollar stores), Convenience (convenience stores, drugstores and vending machines) and Emerging (including farmers’ markets, online retailing, European food halls and meal-assembly kitchens). Also covered are in-store merchandising trends, category sales trends, and trends in new product development, as well as trends in consumer food consumption, shopping behavior, attitudes and demographics.
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