Can a food retailer fall in love with food?

From one grocery store to another, aside from the convenient location it occupies, what elevates one over the other? Not much really. Differentiation is often in marginal territory….

• Products assortments are similar.
• Aisle configuration runs the same direction.
• The perimeter features fresh items.
• The packaged products anchor the center store shelves.
• The checkout is a line.
• Items on sale will exist in most departments.
• The ice bag locker is near the entrance.

Some stores may feature fancier lighting or shinier floors but for the most part if you’ve been in one supermarket in Maine, the same experience will be had in Minnesota or Maryland. There are a few exceptions to format like Trader Joe’s that turns the frozen department into a singular art form. Dorothy Lane owns its Killer Brownies. Publix and Costco lead with great reputations. Wegmans delights with service-minded staff. H-E-B in Texas stands above with its highly curated Central Market banner and Midwest shoppers frequently laud HyVee. Sure, the Northeast’s Stew Leonard stores step ahead with grocery-as-theater.

Even at the high end such as Whole Foods or Plum Market, while the shelves feature more boutique brands and the prices to match the artisanal, locally sourced claims – everything remains strikingly familiar.

But what could happen if a grocery retailer were to fall in love with food?

What if food retail was a culinary adventure, an inspirational tour more than just an organized maze of boxes, cans and bags? Ultimately, the business end of food for shoppers would be a better dish, an adventurous menu, and an extraordinary eating experience. Yet a peek inside the prepared foods case of most supermarkets is a study in over-heated rotisserie chicken and meatloaf belly-pleasers. Maybe a Sushi bar here and there but not many are really blowing up the concept for a delight-to-the-senses food experience.

The Internet and food delivery apps already democratize access to restaurant quality cooking. Great chefy meals can be had in 30 to 40 minutes. How can a food retailer successfully disrupt a ‘been there and done that’ shopping paradigm to create memorable and engaging food and shopping experiences? Is it possible to transcend the point-and-click convenience of restaurants coming to the front door?

Well, get ‘em inside your front door!  Food is sensory. It is emotional. It could be a feast for the eyes, the heart and soul. An inspiration for the home cook. A place of learning and creativity. A tour of global flavors and cuisines. A culinary Disneyland with one theme leading to another.

• Our hypothesis is this: you can’t really deliver food inspiration if you don’t have a passion for culinary experience powered by a visceral appreciation for the magic of food and great cooking (plus adjacent standards that demand improved output from the commissary).

What meal solutions would be located near other menu options if you loved culinary adventure and were determined to help customers elevate their food experiences? People mostly shop for dinner these days. How can you help them with that objective (and we’re thinking way past the roasted birds)? Saucing is a simple maneuver that can elevate just about anything on a dinner plate – who is making that small wonder happen?

Vegetables are a constant drumbeat of nutritional guilting but remain red-headed stepchildren in the pantry because of the absence of inspired preparations (think Asian options) and the transformative flavor punch of roasting over steaming.

• Whatever the culinary muse might be and how stores could be organized differently, it just won’t happen if the executive team doesn’t start with culinary enthusiasm holding court ahead of singular devotion to SKU velocity considerations.

Let the big boxes have their 30 linear feet of cheap tissue and towels. You are too busy whipping up magic in flavor-forward finished dishes or partially prepared global menus. You’ve already dialed in the wine pairing or created an entire plant-based feast. Organizing shopping by menus or need states or cuisine varieties and thinking like a home cook to layer flavors from one department to another.  You know about the current menu burnout epidemic and thus refresh the ‘what’s for dinner’ quandary with creative easy-to-follow meal ideas and curated shopping lists.

Many will interject this just isn’t possible based on the razor thin margins of food retailing that demand fealty to carts speedily navigating the aisles with belief everyone needs to get in and out as fast as possible. Maybe the desire to get in one door and out the other quickly is fed by no real delight to be found in the whole store experience. Is the only emotional win we’re willing to serve up a grass-fed New York strip at $12.99 a pound?

Evidence of Innovation

Grocery icon Bob Mariano and his talented gustatorial co-conspirators Don Fitzgerald and Jay Owen could rightly be accused of putting culinary considerations at the center of a fascinating play on re-imagined grocery. Their Dom’s Kitchen and Market store now operating in Chicago’s Lincoln Park neighborhood is a totem to unabashed borrowing of aligned culinary brand equity by featuring Bonci pizzas, Tortello fresh pasts and Meats by Linz. You go there, you want to stay there. It’s a feast for the senses. Dom’s is really a series of innovative kitchens and menus surrounded by well thought out unique packaged food selections. What fun!

Kevin Coupe, in his epiphanous Morning Newsbeat e-newsletter reports even the largest of grocery chains, Kroger, is experimenting in their Ralph’s banner near the UCLA campus in Los Angeles with a Kitchen United collaboration. Ten restaurant brands and menus can be accessed for in-store pick-up or delivery through a ghost kitchen integration that hits a college crowd pleasing tour-de-force of prepared food options. Think of fried chicken sandwiches and Ramen bowls, sushi, pizzas garnished with a heavy nod to all of the Impossible and Beyond products that replicate a meat lovers’ greatest hits. Relevant to the trading area for sure.

All of this challenges the definition of what a food retail store could be if the owners were in love with the outcome of what they sell. When passion for food and eating experiences influences the merchandising and business decisions, there just might be an opportunity to achieve transcendence. That is a shopping experience so differentiated and meaningful the home cook runs around the store exclaiming, “you get me, you really get me!”

Food adventure springs from the heart. A store can only live and breathe the devotion to food experiences when the executive team starts there themselves. The opportunity is this: create a food shopping experience so remarkable it generates talk value, social discourse, endorsement and excitement from those so awe struck that a food store might romance the actual food.

• What’s the key to competitive advantage in a world that operates in opposition to retail visits? A shopping experience you want to keep coming back to, and not just because there’s a two for one deal on a box of Cheerios.

If creative inspiration and communication of same is what you seek, use this link to open an informal conversation with a team of marketers who love food as much as you do.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Culture change impacts food and beverage brand relevance

There’s a new sheriff in food and beverage town now. A consumer on the hunt for climate- friendly choices. They have a hankering to use the checkout counter as a ballot box to vote their beliefs. Are you prepared for them? Just who is this new cohort rapidly gaining momentum?  As an audience of influencers and advocates how significant will their impact be on the future fortunes of food businesses and retailers in 2021?

Read on.

Five years ago, a great dot-connecting moment transpired when consumers determined that the quality of what they eat has a direct and tangible impact on the quality of their lives. Food retail saw a marked shift in shopping patterns to the perimeter fresh departments as preference for fresh, real food overtook the decades-long infatuation with convenient, inexpensive, highly processed packaged foods and snacks. The aftermath of this transformed ‘what does healthier mean’ calculus and fed the innovation skate ramp of new, entrepreneur created food products flooding the store. These super premium brands-with-deeper-meaning and made from higher quality, ethically sourced real food ingredients have captivated consumer attention and retail shelf space. How many brands of artisanal beef jerky are there now competing for a slice of the snack dollar?

We reminisce on this point just to remind us all that change comes quickly. Our collective goal as marketers is to stay ahead of these transformative shifts. Thus able to help define the state of the art for your brands, rather than scrambling to re-acquire relevance after observing share erosion in the quarterly results report.

Rise of the Climatarian

Another dot-connecting transition is underway. A growing number of bellwether consumers are grasping the connection between the food production system and its out-sized impact on greenhouse gas production plus the climate change threats that accompany it. According to our insight research partner Brand Experience Group, their ground-breaking study on sustainability, estimates the current number of consumers who are passionate about or committed to the importance of “sustainable consumption” at 34% and rising.

The role of meat production and industrial agriculture processes contributing to the planet’s warming is changing the food choice value proposition to invoke a claim that defines carbon footprint. While the word sustainable has gained traction in recent years as a formal player in marketing lexicon, it is acquiring a more specific meaning. Sustainability and climate change are getting married and we’re all invited to the reception.

What’s driving this? In his stellar New Yorker magazine feature “After Alarmism: The War on Climate Denial Has Been Won,” climate advocate David Wallace-Wells paints the picture.

“In California in 2020, twice as much land burned as had ever burned before in any year in the modern history of the state — five of the six biggest fires ever recorded. In Siberia, “zombie fires” smoldered anomalously all through the Arctic winter; in Brazil, a quarter of the Pantanal, the world’s largest wetland, was incinerated; in Australia, flames took the lives of 3 billion animals. All year, a planet transformed by the burning of carbon discharged what would have once been called portents of apocalypse.”

Increased media attention on the issue has circulated data revealing the significant top box role beef and lamb production have in methane creation. Global agriculture practices and meat collectively contribute more to climate threat than all fossil fuel transportation combined. The impact of climate on people and society is being played out in prime time through recurring news coverage of raging wildfires, droughts, super storms, increasing Hurricane impacts, melting glaciers, rising water levels and flooding worldwide.

We’re about to see a shift towards carbon footprint as a definer of sustainability. Those with an attractive, relevant brand story to tell are manifesting this attribute in product label scoring while legacy food and beverage companies swarm to announce “Net Zero” emission commitments. Meanwhile there will be growing scrutiny of supply chains to root out sources of greenhouse gas. The decarbonization of our food system is getting underway. Consumers will demand it. It will be juiced by new food technologies and a cohort of emerging brands that pioneer ways to create food without built-in climate deficits.

Digital innovation will be eclipsed by bio-degradable everything

Alongside global warming is a related developing trend – an innovation heat map swing from digital technology to significant advancements in bioengineering and biofabrication.  A complementary view of sustainability looks hard at the role of plastics and other trash dump materials in so many facets of our lives with a convincing argument that recycling isn’t the best answer. Creating products, packaging, even clothing, from materials that simply disappear harmlessly is exponentially better for the planet.

In 2019, nearly 500 million plastic toothbrushes were sold with the majority of them ending up in landfills and the ocean. They cannot be recycled. Since plastic was first mass-produced in the 1950’s, 9.1 billion tons of it has been created and landfilled – an astonishing 91% of this massive plastic tsunami isn’t recyclable, according to Fast Company magazine. On the toothbrush front, Colgate owns 30% of the entire category and in an effort to end the proliferation of plastic they are introducing “Keep” – the first planet-friendly brush that employs a reusable aluminum handle. The replaceable brush head is still plastic but the design represents an 80% reduction in plastic material use.

Steve and Nick Tidball’s Vollebak, a futuristic brand of men’s fashion, is re-writing the rules and process for clothing creation. Their plant and algae t-shirt is made from plant-based linen and wood pulp fibers decorated with ink from algae. The shirt can completely decompose in 12 weeks when tossed into the compost pile. A shirt that literally disappears. “Sustainability is easier to understand when it involves feeding your clothes to worms,” said founder Steve Tidball in an overview article on their technology showcased in The Future Normal newsletter.

Key to this coming movement of planet friendlier foods, products, processes and ingredients is a revealing focus on the impact of lifestyle and consumption habits on our planet’s health. The realization that what we buy is a reflection of our values rises as a functional and viable path to signal those preferences and beliefs. Consumers’ wallets are used to vote their preferences. This new path to purchase will require brands to look deeply across the organization to determine where improvements and changes can be made to align with this sea change.

Undoubtedly yet another generation of new brands will emerge with carbon footprint claims and planet-friendly packaging as the lead in their brand voice. More innovation is coming. There are, however, business challenges ahead for these upstarts.

• What is the secret to scale-able and sustainable growth, the path to sales homeruns not base hits? We reveal it here.

80% of CPG start-ups will never get past $1 million in sales

Some new emerging brands have well-connected founders and are able to attract investment that creates resource advantages. “Money can buy distribution. It can buy advertising. It can buy huge field marketing events. But it can’t by consumer enthusiasm. It can’t buy cultural relevance for the brand’s attribute-outcome symbolism,” exhorts Dr. James Richardson, of Premium Growth Solutions.

After an initial, well-funded launch with a strong velocity report card, things start to stall or plateau. What’s wrong is often embedded in the product itself. It just isn’t that remarkable. Or, importantly a narrow, niched positioning causes the brand to stall. It simply runs past its ability to attract an audience sufficiently large enough to keep the velocities on a northward trajectory. Enthusiastic users, perhaps, but a narrow, smaller fan base nonetheless.

Scaling beyond the mid-range isn’t an outcome of more funding or the awareness that can buy. It is delivered by steering the brand towards the right and largest addressable market. Beyond Meat famously did not create a better vegan burger for vegans. They opened the aperture wide by casting themselves as a meat made from plants for meat lovers. They threw down the gauntlet of crave-able taste experience and asserted they were as good as a beef burger. Bold to be sure. The product delivered on its promise under that scrutiny.

The genius was casting a wide net to meat lovers and in doing so working to build relevance and resonance with a very big audience of meat department beef shoppers. It wasn’t because there was this giant standing pool of people representing themselves as “flexitarian.” No, instead they invoked meat lover and by that they meant anyone and everyone who loves hamburgers, the most popular sandwich on earth. The outcome was a rapid rise to hundreds of millions in sales.

Largest. Addressable. Market.

Don’t make vegan cheese for vegans. Instead craft extraordinary, delicious plant-based cheese for cheese lovers. A high taste bar to be sure, but then that’s what separates the extraordinary product innovation from the merely average.

Climate change and bioengineering will reshape the food, beverage and lifestyle brands business more quickly than anyone imagines. Venture capital and innovation will quickly chase these dreams. More higher-purpose brands will be invented. Some will be out-sized winners while some will remain small or fail altogether. The difference maker won’t be the size of the budget and the awareness that can acquire. Sound strategy will play a decisive role in the fortunes (or lack thereof) of these businesses based on the quality of the innovation itself, the size of its potential market and the alchemy of how and where its relevance is expressed.

If this thinking strikes a chord and you would like to brainstorm further the implications for your business, use this link to start an informal, no-charge conversation.

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Symphony of logistics becomes an orchestra of societal values

For the last 30 years or more, supermarkets have operated as a highly-choreographed dance of sourcing, merchandizing and value pricing all stage-managed with intricate daily replenishing management of same. It is, in many respects, a remarkable achievement that provides the lowest cost-to-quality food on earth in an assortment depth that is the envy of the rest of the planet. The grocery store has stood as an assurance of food quality and availability, yet now arrives precariously at a moment of transformation that is far beyond the mechanics of coming in-store robots, the challenges of e-commerce friction and assorted home delivery platforms.

Strategic shift underway

Food retail may also be the most visible in-your-face demonstration of traditional brand marketing strategies borne of the post-World War II consumer packaged goods explosion; focused on a more impersonal and product feature-and-benefit form of consumer communication.

A sea change started to emerge in recent years based on an evolving consumer mindset driven about what matters most to them on the path to purchase. Witness the emergence of health and wellness as a primary driver of consumer preference, the attention now paid to transparency and supply chain integrity and a growing concern over food safety practices. All of these emerging trends have eclipsed the traditional purchase motivators of taste, price and convenience.

The Great Pandemic of 2020 pushes the envelope of change faster and farther as consumers not only connect the dots between the quality of the food they eat and their quality of life, but now see retailers and brands as active participants in their social and societal concerns and growing activism.

Two fundamental impacts of COVID 19 on behaviors and attitudes

1. The pandemic has served to reveal the inescapable, searing questions of economic inequality, exclusion, racial prejudice and its unfairness while lighting a fire to address and solve these inequities. How this plays out will require sensitivity to the issues and strategic planning to address it openly and visibly in policy, procedure and behavior.
2. On another front, at one time consumers aspired to improvement in their lifestyle through status signaling in conspicuous consumption of brands that elicited those feelings of aspirational identity. However, today this has fallen away, shed by a pandemic that has entirely recalibrated what matters to people. Today a brand reputation is enhanced by its social, cultural and environmental values.

Brands and retailers must add responsiveness to a requirement for higher purpose, generosity in behavior and social improvement to their actions. Do you think this transformative insight has fully translated into how brands and retailers package their story and represent themselves in the marketplace? I would say no. Or not yet, while a few are in the starting blocks and getting ready to claim their competitive advantage.

Recasting the supermarket business model

Here we find ourselves in a moment of mechanization. Robots. Digital ordering platforms. Supply chain optimization. Experiments with drones. Electronic grocery carts. Wringing more efficiency in an effort to get product A into hands B more quickly, efficiently and at lower cost.

Nothing wrong with any of this, except it may inadvertently mask the cultural trend changes that argue for a different priority around how supermarkets organize their business for success and relevance to the consumer they need to keep. Technology has its place, but there is a more human need arising that should be considered strategically, as customer-centric planning becomes a top priority.

Let’s go to the ground on this together, where the food culture ‘rubber’ meets the consumer relevance road:

For over a year we’ve been reporting on the shift to home-based meal consumption and cooking. A fair question then: what does the massive pivot to home cooking mean to supermarkets? We’re not talking about the obvious of selling more products, more often for more occasions.

The intimacy people have with food and its preparation is increasing. There’s another form of ‘closeness’ that is percolating underneath as a potential component of retail strategic uniqueness and differentiation – the two components of sustainable business growth.

People buying food from people

You may recall there was an era prior to the maturing of efficient retail when people knew the sellers and makers.

A relevant story: awhile back I had the honor and privilege of meeting Glen Kohn and his business partner at a networking event staged by Chicago’s impressive food brand incubator, The Hatchery. Later during a deeper get acquainted meeting, Glen spoke in detail about his company Prevail Jerky, an emerging super-premium brand of clean, high quality jerky snacks offering an array of culinary forward flavors.

He told the story of how his wife had food allergy challenges. He wanted to make a jerky his wife and family could enjoy. You see Glen was a smoked meat mastermind who had a personal passion for barbecue, smoking proteins and making his own bespoke jerky. He set out to perfect this high protein snack with a recipe that stripped away the legacy bad-for-you allergenic ingredients and use of nitrates, excessive sodium, artificial flavoring and sugars that dogged this dried packaged meat category since inception.

More magical in my opinion is a preparation technique, and he won’t say exactly how he does it, that improves the eating experience by making the meat less tough and chewy. Ultimately what we have here is another improved, higher quality, better-for-you product in a legacy category, with a personal story behind it. In effect, the food quality is guaranteed through Glen’s personal journey.

Even before the Pandemic sent us behind closed doors and placed an even higher premium on human contact, personal relationships were making a comeback. People want to know who the makers of their food are, where they come from, what they are about and how that translates into the product they’ve created.

• Increasingly, we see the aisles at food retail stocked with new brands built by a person, not an R&D lab or innovation department. What was once a hall of impersonal, faceless brands, is turning into a showcase of businesses that acquire their social value through consumers’ desire to support an actual, real-life maker.

Makers bring with them values, beliefs, mission and unique standards of quality that provided deeper meaning past the better recipe. Here’s the strategic twist: while local sourcing has been popularized recently, this nuance stretches the idea further to what we’re calling Local-ism.

People now look at purchases as a statement of what they believe is important rather than flags of social status and prosperity. They are voting their beliefs and values with their wallet. The checkout lane is a voting booth. They are electing product winners with a voice, face and story. The intimacy with food goes deeper. The sense of community building gains a whole new perspective. The store is an aggregation opportunity for these stories-as-brands and a place where they can be brought to life.

• Now retailers have an opportunity to move past the old-school model of being a seller of boxes, cans and bags off shelves at velocity on hyper-thin margins. Food retail can disrupt itself by becoming a form of neighborhood cooking club that respects the environment and the farm while supporting people who craft new food solutions that come to market with a soul. Doesn’t sound like a distribution center for factory food, does it?

What was once impersonal, transactional and formulaic, takes on some of the pastiche of the corner market where the buyer knows the seller, meets the maker and real trusted relationships take root. This is not in conflict with technology and robotics but is rather an important reflection of consumer insight to better guide retail strategy and banner differentiation.

How to think about this: efficiency only goes so far. Becoming a more human-focused business that embraces the emotional investment people have in food, its provenance and related quality is a path to relevance that beats yesterday’s reliance on store location and lower pricing to create competitive advantage. Amazon may have a tougher time with this kind of thinking.

Recommendations on humanizing food retail

• Optimize your aisles and product assortment to feature local and emerging brands with a maker story.

• Use your content creation platform to provide a voice for their stories – and a real, relevant reason for your customers to feel connected to the products they buy at your store.

• Serve this up in a context that works in people’s lives around meal and snack solutions. That’s the foundation for relevance for the food-savvy consumer.

• Marry and merge your indulgent food strategies with better-for-you as the relationship between these two draws ever closer.

• Look past the coupon to start creating other experiences both digital and in-store that showcase your love for food adventure and culinary creativity. Love of food is something you can immediately demonstrate to your shoppers.

When you become highly differentiated, unique and relevant to people, your need to rely on heavy advertising spend to generate traffic declines. When you become remarkable in your shoppers’ eyes, people talk about their experience. Word of mouth is still the most effective form of marketing outreach at your disposal. It is an outcome of remarkable-ness.

Changing perspective may be hard to do because retail traditions and embedded thinking are more about logistics and efficiencies than experiences and food adventures. When the name of the game for decades has been how can we deliver food most cost-effectively – somewhere, we’ve lost sight of the real people who are buying the food – and meeting their needs beyond assortment and price.

When you can see merit in bringing to life the voices and stories of food makers and create ways for buyers to meet them, it lifts your banner above competing mostly on price and product range. That’s a race to the bottom no one wins and plays right into the hands of the endless digital shelf.

A supermarket chain CEO once said to me, “if you walk our office halls on any given day you may find it hard to determine if we’re in the food or hardware business. So much of what we do is too far removed from emotional connections to food and what people use it for.”

You just need to fall in love with food and its ability to transform people’s lives.

If this conversation gets you thinking and you would like to explore it further with like-minded people, use this link to start a conversation without any expectation of a business relationship save we made new friends.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Food Retail Innovation Now in Truckee, CA

Raley’s, the family-owned Sacramento-based supermarket company, recently launched a new grocery store concept they envision as a model of how food retail should evolve to build consumer relevance. Located in picturesque Truckee, California, just outside Lake Tahoe, the trading area is populated with families devoted to an active, outdoor lifestyle.

Raley’s designed the store concept with Truckee’s active families in mind – visualizing a supermarket focused entirely on healthy living. The Raley’s O-N-E Market banner (Organics, Nutrition, Education) is a four-walled, 36,000 square foot better-for-you food discovery zone. Designed for people who understand there may be a direct link between what you eat and the quality of your life, the concept mirrors their desire to seek out better choices, explore a more mindful selection of products, and learn about improved nutrition. Remarkably, it is a food store that embodies owner Michael Teel’s higher purpose mantra to “change the way the world eats one plate at a time.”

“We have been on a journey for health and wellness, and Raley’s O-N-E Market is the next step in our company’s transformation,” said Chelsea Minor, Raley’s Corporate Director of Public Affairs. “Raley’s O-N-E Market offers a highly-curated assortment of products that are organic where possible, wholesome, minimally processed, sustainably sourced and offers a stage for nutrition education. We want consumers to understand why these products were selected for our shelves and why they are better options for them and the community,” she said.

Who is really in charge, merchant or customer?

For the most part grocery stores operate in reverse from consumer lifestyle insight.  The shopping design and experience is most often built from the merchant’s business model intended to move boxes, cans and bags off shelves at velocity. Thus, in many ways, grocery stores are entirely recognize-able banner to banner with merchandise schemes and traffic flow patterns that follow a commoditized approach to assortment and shopping experience.

Which begs the question: what if a store format is re-imagined as a reflection of the lifestyle interests of its core customers, instead of the other way around? “The biggest differentiator is our product mix. We emphasize foods ‘free from’ artificial ingredients, colors, high fructose corn syrup, hydrogenated fats and oils and more. We source organic where possible – in produce over 60% of the department is organic to meet consistently high standards for health, nutrition and sustainability,” reports Minor.

As evidence of that commitment Minor says shoppers will not find any conventional soft drink products inside the store. Indeed, sugar awareness is a priority at Raley’s O-N-E Market. Any cereal containing more than 25% of its total calories from added sugar per serving is identified with a ‘Higher in Added Sugar’ shelf tag. Other categories getting the sugar evaluation include Ready-to-Drink (RTD) beverages, pasta sauces, baby food, protein bars and condiments like BBQ sauce and ketchup.

To help consumers make better decisions while shopping, digital screens in the front of the store rotate messages by department providing information on healthier choices. Foodservice areas use window clings and the menu board to help convey this useful information. Better-for-you guidance is also provided in price rails at the shelf to help shoppers make informed purchase decisions.

Retailer as life partner on journey to healthier lifestyle

Raley’s believes the consumer should be equipped to shop with better information and guidance. In an effort to help them realize their healthy living ambitions, the product options they’ll encounter already lean heavily in that direction. In the high traffic meat department, attributes such as organic or anti-biotic free are flagged within an assortment that’s already curated with healthier and higher quality choices in mind.

To help fulfill the Education mission, the Truckee Raley’s O-N-E Market is their first store to have a registered dietitian on-site to interact and coach consumers. Scott Brown, Raley’s first in-store registered dietitian nutritionist (RDN), is there to conduct nutrition tours, provide one-on-one healthy living consults and answer customer questions. Raley’s customer loyalty platform also gets a twist in Truckee: the “Something Extra Health” program offers biometric screenings, classes and in the future will feature vendor presentations.

“Shoppers these days want to know more and are faced with an increasingly confusing environment around navigating claims like ’natural‘ and ’plant based,’” said Minor. “We feel we have a responsibility to help explain and clarify what best practices look like in making food choices. Our role as retailer is to help them on their healthy living journey by operating as guide and coach.”

The future of food retail?

Most satisfying in our conversations with Minor and others at Raley’s was their sense of commitment and passion about what ”changing the way the world eats one plate at a time” truly means and how that plays out when you’re inside the front door. The position Raley’s O-N-E Market takes is active not passive, expressing leadership rather than go figure it out for yourself.

No one is going to beat Amazon on friction-free e-commerce, or Walmart on lower price. We have ample evidence that the middle market in grocery retail is a tough place to do business when the value proposition is based on location (getting weaker to defend) or all-things-to-all-people assortment (not a real strength anymore).

We believe the platform of highly differentiated and focused concept – especially in the Health & Wellness space – gives consumers an experience and another reason to shop brick and mortar. This is critical to food retail success and means leaning in fully to a commitment that places the customer at the center of strategic planning.

This insight must be informed by a crystal-clear higher purpose that translates into on-the-ground strategic decisions which defines and manifests in every aspect of store operation.

Human beings are emotional creatures. People are not fact-based analytical decision-making machines. We know the human sub-conscious plays a far more important role in helping guide actions and decisions than the cognitive side, yet most retailers operate on the “rational” channel.

When it’s heart-over-head, the grocery store shopping experience is enhanced by strategies that acknowledge our deep love affair with food, interesting culinary experiences and the prevailing desire for a healthy lifestyle.

• Disney knows how to create the magic in their kingdom. Imagine a food store with the same heart and passion for food experience and how that could play out in a store setting.

Raley’s recognizes the growing importance of grocery foodservice experiences especially at a time when going to restaurants is less desirable. Yet the magic of environment and ambiance are no less important here than at the corner bistro. “Raley’s O-N-E Market includes McKinney Loft – a tribute to Steve McKinney, skier, mountaineer and local icon. The loft features plenty of seating, a beer and wine bar, bar bites, and an outdoor fireplace and large TV screens,” explains Minor.

At the crux of Raley’s likely success with Raley’s O-N-E Market is its higher purpose. This is harder to define correctly and to optimize fully. For that reason, Emergent has built a four-step plan to guide higher purpose development. You can download a copy here.

If would like to discuss this in the context of your business and its future, please use this link to start a conversation.

For more food trends, consumer insight and communications strategy follow us on Twitter @EmergentLiving.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Planning Insights to Leverage the Changing Dynamics

In part 1 of The Emergent Credo for Food Retail Growth we explored the changing dynamics impacting long-term success and growth of Food Retail in the U.S. Here in Part 2, Emergent, the healthy living agency, provides insights to leverage these changing dynamics for your marketing plans.

For consumers, food is a high involvement category. They are ready and willing to get involved with retailers who understand and respect their lifestyle interests and goals.

Supporting these food-centric consumers requires a strategic pivot from transactional thinking to relationship thinking in the business and marketing plan. This can best be described in three words as: help-over-hype: helping the consumer over simply hyping the product benefits.

By focusing your marketing efforts to address consumers as three-dimensional people rather than targets and engaging them as you would a friend rather than a prospect, provides the kind of authentic connection people are looking for with others and with products and services they care about. This is the “humanization” of marketing.

We will witness increased humanization of supermarket marketing strategy through the deployment of respected experts in external and store communication, including:

• The Chef: Inspiration and Creativity
• The Farmer: Source and Craftsmanship
• The Culinary expert: Guidance and Learning
• The Wellness Agent: Curating Choice and Managing Lifestyle

What role does food retail serve in this new eco-system of food friendly culture and desire for better quality?

It’s all about the food – its preparation and social experiences around the table. Thus, retail can own an important position as the architect of cooking inspiration, enhancing kitchen skills and menu ideas, providing expert healthy lifestyle guidance, while offering unique culinary experiences and sensory adventures inside the store.

All of these insights bear a common element: putting the consumer at the center of strategy and looking at the business in terms of solving their health, wellness and culinary lifestyle needs.

Four key strategic guideposts inform the recipe for growth and success:

1. Higher purpose must drive the entire retail concept and plan.

People buy belief as much as they purchase products. You mission should be front and center in the business plan. And that purpose needs to be a real, human relevant purpose not just maximizing shareholder returns and P&L objectives.

2. Relevant content, information and guidance provide the grist for customer engagement.

Help over hype is the litmus test for effective engagement at a time when consumers run in the opposite direction from self-serving sales messaging.

3. Validation is required to secure trust and belief.

The deployment of outside expert, third party voices and influencers are vital to credibility and to securing the trust of your customers.

4. Store experience closes the deal.

What happens inside your stores is the last mile to a lasting relationship. When your store inspires culinary adventure, and serves the interest in healthy lifestyle – you have the right formula for an enduring and profitable relationship.

By embracing the consumer fully in strategic planning, you immediately increase the levels of salience and relevance to their needs and interests. Retail businesses now operate successfully when relationship building is at the forefront of go-to-market strategy.

After all, we’re now living in The Relationship Economy.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for  higher quality lifestyles. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Relevance should guide retail brand value propositions…

By Bob Wheatley

Research shows that home cooks typically learn and establish expertise around 10 menus. And while these may evolve or modify over time, the number of them tends to remain the same. Thus the items purchased – while also varying here and there – will retain a measure of continuity.

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