The Retail View: Supermarket Guru says change is your friend
The Retail View: Supermarket Guru says change is your friend
Consumers are constantly changing and altering their perception and retailers must do the same, if they are going to survive and thrive.
At least that was one of the major messages delivered by Phil Lempert, also known as “The Supermarket Guru,” who was the keynote speaker at the Feb. 5 luncheon of the Fresh Produce & Floral Council in Southern California.
Phil LempertThe longtime retail consultant ended his 45-minute talk with what he called the “three big questions” retailers should be asking themselves:
What is the next big trend?
What are the three things you would like to know about food consumers that you don’t know today?
What’s the innovation over the past 12 months that you find the most interesting that is not food related?
It is these new things that will be shaping consumer decisions in the next marketing period.
“If you are thinking about starting a gluten-free program at your store, you are already five years behind,” he opined. “That trend is in the rear view mirror.”
Though food has become increasingly important to many consumers, the majority actually dislike shopping for it in the supermarket, according to Lempert. He called food “the new universal language,” but revealed that 53 percent of consumers dislike supermarket shopping and 14 percent say they “hate it.”
He told retailers they need to think about what the consumer is thinking to find out those next big trends. The best way to do that: Ask them.
Talking specifically about produce, he said retailers should have their in-store personnel in the aisles cutting produce and engaging the consumer.
Stating what has become common knowledge in recent years, Lempert said “fresh” has been the biggest trend in the past decade. The move toward fresh cuts across many demographics.
Though other age group categories often get the headlines, Lempert said baby boomers are still extremely important. Seventy-six million strong, they will control 52 percent of the estimated $706 billion that will be spent on food in the year 2015. They are still the largest food influencers and purchasers, and are being guided increasingly more by health concerns, including such growing issues as diabetes, high blood pressure and heart disease.
Of course, they are not the only group that retailers need to consider. He called millennials “the new commanders of food” and rhetorically asked retailers in attendance: “Do you know who they are?”
He said that as a group the millennials are “passionate about food” and they “love to cook at home.” Currently they are saddled with high college debt and survive in relatively low-paying jobs. But they are the future and retailers need to target them.
“This is a group that wants more information about the food they consume,” he said.
When it comes to produce, Lempert told all in attendance that no matter what their political preference, they should be happy and excited they have an advocate in the White House in First Lady Michelle Obama, who is helping to promote the values of good diet through the consumption of fresh fruits and vegetables.
“The White House garden focuses on community,” he said, adding that 120-by-60-foot piece of real estate has become a big food influencer in this country. He said that thanks to Ms. Obama, children are now eating healthier at schools because several federally funded feeding programs have changed to a better diet.
Good news for the produce industry is that a full 75 percent of consumers state that they “want to eat healthier.” And they want to know where their produce comes from.
He added that while “local” is interesting, consumers really want to know locale, wherever it is.
“Local used to be within 25 miles, then within 100 miles, then within the state and finally grown on this planet,” said Lempert.
During his presentation, which at times seemed like a one-on-one tutorial to retailers, Lempert touched on a number of other food influencers that have had an impact or will in the future.
He said the recent recession drove people to shop around, but they were still looking for quality, service and the relationship with their retailer, as well as price.
While consumers do like to cook at home and half of them are doing it more often, only about 50 percent feel “in control” or “confident” cooking. However, a strong 42 percent say they “like to experiment, create recipes,” and 75 percent would like to acquire better cooking skills.
Lempert said the emergence of the “IndieWoman” is a trend to get ahead of. There are 31 million women in this country who are 27 and older, single and live alone — though they have a strong support system through friends. They spend $50 billion a year on food and beverages.
Several other trends he pointed to that could be important, include snacking for better health, cause marketing and the use of smartphones in the supermarket. Thirty-five percent of consumers use their smartphones when they shop, with saving money and looking up recipes the main impetus behind their use.
Areas where supermarkets might reach out to the community and create relationships are with the advent of supermarket culinary schools and offering more ready-made breakfast foods.
And he offered one final thought: Your eyes do not deceive — there are more men in the supermarket today than in the past. Fifty-two percent of dads say they are the primary grocery shopper in their family and are in charge of planning the daily meal. Thirty-one percent of all shoppers are men.