the food retail landscape
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The Food Retail Landscape
All Rights Reserved.© 2017 METTLERTOLEDO
A look at where the food retail industry is and where it is going
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For internal use - Confidential
Agenda
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
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For internal use - Confidential
A look at the Consumer Landscape
Generational decision making and outlooks
50% of current retail sales
Most likely to create grocery lists
Price focused
Baby Boomers . Generation X. .
Spend most $$ monthly on groceries
53% tried a new product on their last shopping trip
Most frequent shoppers once they join a loyalty program
Millennials .
"Generation Y" Product freshness,
fiber and whole grain content
Shop organic and more aware of GMOs
79% are on social media
Largest group of consumers worldwide by 2020
Online research before purchases
Socially conscious Experiences >
material items
Generation Z .
Source: Statista
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For internal use - Confidential
A look at the Consumer Landscape
How attitudes and demographics are shifting
50% [of people in the U.S.] have said their diet could be healthier
28% want minimal processing of their food
25% want a shorter list of ingredients
Demographic Shifts expected to continue:
"…task of grocery shopping is being divided among various family members. Nearly 60% of households share shopping responsibilities." –FMI
Ethnic supermarket revenue in 2014 was $30.4 billion and should grow to $35.2 billion in 2018
According to the 2015 Supermarket Guru Grocers Association Consumer Survey:
5A look at the Consumer Landscape
As consumer attitudes change, so do their priorities
For internal use - Confidential
• Fresh, less processed foods• Transparency in labelling• Online and mobile shopping
gaining momentum
What are they looking for? 3 in 4 shoppers are actively switching to healthier versions of at least one type of food in 2016 -FMI Survey
81% of shoppers will purchase something not on their list, at least occasionally
The Halo Effect
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For internal use - Confidential
Agenda
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
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For internal use - Confidential
The Food Retail Industry Response
How stores in the Food Retail industry are responding to market shifts
Average super- market square footage since 2006
"According to…Prosper Insights' & Analytics'
November 2016 survey, 7.7% of U.S. consumers
shopped online for groceries in the past 30 days, up from 5.7% two years ago." –Retail
DIVE
What does this mean for grocery stores?
Figuring out the last mile
Retailers are fighting the online giants by introducing food delivery & in-store
pickup.They have also been merging and
acquiring other companies to improve their success.
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For internal use - Confidential
The Food Retail Industry Response
New competition from smaller and European markets
Lidl Largest discount grocery chain
in Europe Coming to east coast in 2018 Aldi is top competitor
Farmers Markets Promote sustainability On the rise in cities and
small towns
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For internal use - Confidential
Agenda
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
5
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For internal use - Confidential
More Mindful Eating and Awareness
Changes in stores as the Organic and Prepared Foods industries grow
$45 billion spent on organic food
annually in the U.S.
Stoc
k Pr
ices
Whole Foods Sprouts Fresh Market
76% of consumers'Fresh Prepared dollars are spent at their primary Fresh Prepared store.
Source: FMI
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For internal use - Confidential
More Mindful Eating and Awareness
How is Sustainability defined in 2017?Sustainability
Most important trend of 2017
Definition continues to evolve in regards to how
our food is produced, where it comes from, how much is wasted and what we can do
to improve processes.
Recycled
Donated
Disposed of
Destination of Food Waste (in pounds),Retail/ Wholesale Respondents 2016
1,172.3M 597M
391M
Source: FMI
54.3%
27.6%
18.1%
Augmented transparencyFood waste reductionShared responsibility of environmental goalsWonky produce
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For internal use - Confidential
Agenda
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
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8
9
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For internal use - Confidential
New Technologies In and Out of Stores
How companies are responding to new attitudes through technology
Urban Farming
Enhanced Foods
Cellular Agriculture
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For internal use - Confidential
New Technologies In and Out of Stores
New in-store technology solutions
Kroger Technologies Blue Yonder Replenishment Optimization
• Machine learning solution to provide higher levels of control in managing fresh assortments in the stores
• Utilizes multiple influencing factors in creating predictions
• METTLER TOLEDO has been working with Kroger to implement a check-out free solution in all stores
• Digitally enabled shelves now in testing phases
• ClickList allows customers to avoid the shopping experience all together with order-ahead and in-store pickup.
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For internal use - Confidential
Thank you!
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