“Industry Experts Predict The Future Of Retail” http://retail-vision.co.uk/, September 2015

September 5 2015 No Commented
  • I recently completed a national research study of American Millennials (18-34 years of age). I discovered some very profound differences in their food retail shopping behaviors from their older counterparts. Only 56% of all Millennials shopped for groceries in a regular full-service supermarket during the preceding 30 days. This number is a sharp contrast to data published by the Food Marketing Institute (FMI) which reports 89% of all households shopped for groceries in a regular full-service supermarket the past 30 days. In addition, one quarter (25%) of Millennials in my research indicated that they purchased groceries via online/Internet/mobile during the preceding 30 days. This is in sharp contrast to the FMI data which indicated only 8% purchased groceries online during the previous 30 days. Similarly, more Millennials shopped at Supercenters, Dollar, Drug, and C-stores than the rest of the population.
  • The conclusions and implications of these findings are as follows: Food shopping behaviors of this now largest U.S. generation are significantly different than the rest of the population. There is clearly less shopping at traditional food retailers. The future of the traditional food retailer in jeopardy, unless significant changes are made. In addition, manufacturers’ go-to-market strategies need to change to reflect the changing shopping behavior of Millennials. Food marketers who assume that the Millennials will start to behave like current older Americans, just because they age, do so at their peril.
  • My predictions for the future of food retailing are as follows: First, Omni channel which is about customers, not channels, will become a reality. Second, the days of the Center of Store (COS) as currently configured will be significantly diminished. Many of the COS products will be purchased online from the “bricks-and-mortar” retailer and delivered to the store for direct placement into a consumer’s vehicle. This will then free up consumers to shop enhanced and exciting perishable (now perimeter) departments, then proceed to a designated area and have their online purchases placed into their vehicles. Food retailers who design their stores with this in mind will be able to satisfy the multi-level needs for speed, convenience, service, customization, and a sensory-focused food shopping environment.
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