The Future of Food Retailing in the U.S.: Shopper Insights and Market Opportunities, 4th Edition

London (PRWEB) November 04, 2013

The retail market for foods and beverages is undergoing some of its greatest changes since supermarkets came to the fore in the 1940s and 50s. Economic, demographic, lifestyle and technological changes have created not only a fertile environment but the absolute necessity for new concepts to engage shoppers, capture share of stomach, and re-invent food and beverage retailing.

While the greatest competition to supermarkets and grocery stores comes from supersized one-stop shopping venues like supercenters and warehouse clubs, the threat has spread out across myriad retail channels, including drugstores, dollar stores, limited assortment chains, and (the elephant in the room) online grocery shopping. Although supermarkets remain the majority force in food shopping, they are no longer calling the shotsa role now shared with Whole Foods and Trader Joes on the natural/specialty side, Walmart, club stores, and dollar stores on the value front, and farmers markets and food trucks in trend-setting.

At the same time, 2012 and 2013 have been big years for mergers and acquisitions in the retail food industry, as strategic buyers and private investors seek a way to expand their businesses to additional markets. And while the economy has shown positive signs of recovery in the past year, many consumers remain buffeted if not traumatized by higher gas prices, rising food prices, mounting healthcare costs, and increased payroll taxes. As a result, most are still feeling economically squeezed and spending-shy.

This study provides in-depth analysis of trends in four key retail channels through which foods and beverages are sold:

Grocerysupermarkets, natural food stores, small grocery stores, ethnic markets, specialized food stores, and gourmet/specialty stores;

Valuesupercenters, mass merchandisers, warehouse clubs, dollar stores, and limited assortment stores such as ALDI;

Convenienceconvenience stores and drugstores; and

Alternativeonline grocery services, vending machines, farmers markets and community supported agriculture programs (CSAs), and other alternative venues.

Among the topics examined are which types of stores they shop, how much they spend, how they plan for their trip and what in-store services they use; attitudes toward wellness, nutrition, food labeling, natural/organic foods, food safety, and store brands; and which food departments attract shoppers to stores.

The data analyzed in Food Shopper Insights are largely derived from Packaged Facts February/March 2013 Food Shopper Insights (FSI) Survey, supplemented by data from our Food Shopper Insights (FSI) Survey conducted in June 2013. Each survey had a sample size of 2,000 U.S. adults who had shopped for groceries within 24 hours of being surveyed. The sample composition is representative of the national population by gender, age bracket, geographic region, race/ethnicity, household income bracket, and presence of children in the household.

Chapter 1: Executive Summary

Scope of Report

Report Methodology

Food Shopper Insights

Supercenters, Warehouse Clubs, Dollar Stores Strong Competition for Grocery Trips

Table 1-1: Type of Store(s) Shopped on Most Recent Grocery Shopping Trip, 2013 (percent of grocery shoppers)

Majority Like Their Store, But Only 56% Like Grocery Shopping

85% Perform Some Type of Preparation for Shopping

Saving Money an Important Consideration

Wellness a Concern for Many Grocery Shoppers

Shoppers Seek Specific Nutritional Benefits

Fresh Fruits and Vegetables the Most Important Shopping Draw

Two Out of Three Purchase Store Brands

Store-Prepared Food Items Attract Many Grocery Shoppers

Table 1-2: Type of Products Purchased on Most Recent Grocery Shopping Trip, 2013 (percent of grocery shoppers)

Kids Influence Parents Grocery Choices

Figure 1-1: Percent of Parents Agreeing My Kids Play an Important Role in the Groceries I Choose, 2013

Retail Trends

Total Retail Food and Beverage Sales Almost $ 640 Billion in 2013

Table 1-3: U.S. Retail Sales of Foods and Beverages, 2013-2018 (in millions of dollars)

C-Stores Outnumber Supermarkets Almost Five to One

Supermarkets Lead Food and Beverage Market with 53% Share

Figure 1-2: Share of Food and Beverage Dollar Sales by Retail Channel, 2012 (percent)

An Industry in Flux

Consumers Still Spending-Shy

Grocery Sales Trend Higher

The Top 20 U.S. Food Retailers

Table 1-4: Top 20 U.S. Retailers of Foods and Beverages, as of June 2013 (in billions of dollars)

More Types of Stores Focusing on Foods

More Actual Stores

Multi-Channel Shopping

Small Is Big

Private Label Foods & Beverages Top $ 104 Billion in 2012

Consumers Widely Accepting of Private Label

The Debate Over Loyalty Cards

Technology Changing How Consumers Shop for Groceries

Emphasis on Fresh Foods Continues to Grow

Prepared Foods Drive Store Traffic and Profits

Retailers Becoming Arbiters of Wellness and Nutrition Management

Chapter 2 Highlights

Chapter 2: Food Shopper Insights

Methodology

Shopping Trips: The Basics

Supercenters, Warehouse Clubs, Dollar Stores Strong Competition for Grocery Trips

Table 2-1: Type of Store(s) Shopped on Most Recent Grocery Shopping Trip, 2013 (percent of grocery shoppers)

Six in Ten Spend Less than $ 100 on Groceries Weekly

Figure 2-1: Average Amount Spent Weekly on Groceries, 2013 (percent of grocery shoppers)

Majority Like Their Store, But Only 56% Like Grocery Shopping

Table 2-2: Attitudes of Grocery Shoppers Toward Grocery Shopping, 2013

Environmental Concerns Affect What Happens in the Aisles of Grocery Stores

Figure 2-2: Percent of Grocery Shoppers Agreeing Green Packaging is Important to Me in Choosing Which Groceries I Buy, 2013

Figure 2-3: Percent of Grocery Shoppers Using Reusable Shopping Bags During Most Recent Grocery Shopping Trip, 2013

Planning Ahead

85% Perform Some Type of Preparation for Shopping

Figure 2-4: Percent of Grocery Shoppers Doing Any Kind of Planning Before Most Recent Grocery Shopping Trip, 2013

Figure 2-5: Percent of Grocery Shoppers Agreeing I Often Stop by the Grocery Store on the Spur of the Moment, 2013

Shopping List Is Most Common Preparation Before Shopping Trip

Table 2-3: Type of Planning by Grocery Shoppers Before Most Recent Grocery Shopping Trip, 2013 (percent of grocery shoppers)

Saving Money Remains an Important Consideration

Table 2-4: Retailer Programs Used During Most Recent Grocery Shopping Trip, 2013 (percent of grocery shoppers)

Figure 2-6: Percent of Grocery Shoppers Agreeing I Buy a Lot of

Groceries That Are On Sale or Promotion, 2013

Wellness and Nutrition

Wellness a Concern for Many Grocery Shoppers

Table 2-5: Attitudes of Grocery Shoppers Towards Food and Health,2013 (percent of grocery shoppers)

Certain Foods Have a High Wellness Profile

Table 2-6: Attitudes of Grocery Shoppers Towards Healthy Foods,2013 (percent of grocery shoppers)

Whole Grain, Multi-Grain the Most Appealing Characteristics

Table 2-7: Characteristics Sought When Buying Food Products, 2013(percent of grocery shoppers)

Wellness Concerns Help Drive Purchase Decisions for One in Two

Grocery Shoppers

Figure 2-7: Percent of Grocery Shoppers Agreeing

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