instore - October 2017 - 3
editor's note
Smart Growth
Recently there's a been a lot of talk about a paradox in the retail grocery
world. On the one hand, the future for brick-and-mortar grocery stores
in the U.S. has never been more unknown and/or dire. On the other,
new stores pop up at about the rate that brick-and-mortar book/record/
clothing/fill-in-the blank stores shut their doors.
How can this be? Online retailers have made life miserable for all
manner of traditional retail, and the June announcement that Amazon
was buying Whole Foods Market made clear to anyone who didn't
believe it already that Amazon now has grocery in its sights. The
markets responded accordingly, with stocks of several traditional
retailers taking nose dives in the weeks after the announcement. And
yet...new stores keep opening. In 2016, more than 440 opened, above
the industry average, according to JLL's Grocery Tracker. And the pace
doesn't seem to be slowing this year.
One retail analyst I talk to believes that grocery chains expand because
that's what their CEOs were hired to do: grow the company. If they
don't order new construction, he says, shareholders and analysts will
see it as stagnation, a sign of weakness. And so they grow, whether it's
prudent to do so or not. That might be an extreme position. But one
belief that many experts share is that the brick-and-mortar grocery
world is set for a serious reckoning in the coming years. Store closings,
they say, will become routine.
Recent evidence suggests, again, that companies that invest in instore
deli and bakery and other perimeter departments have a much better
chance of navigating this new retail world. Sunbury, Pennsylvaniabased chain Weis Markets Inc. announced a 20 percent sales jump in
second-quarter fiscal '18, driven largely by strong deli prepared sales.
Another positive earnings report, from Grand Rapids, Michigan-based
SpartanNash, also highlighted a big push into prepared foods.
A recent trip to St. Louis-based retailer Straub's confirmed this for me
from a ground-level perspective. More than a quarter of Straub's sales
are generated by its deli. When I visited, customers - young, old, in
the middle - were trying samples, talking to employees, gathering
information, immersing their senses in their food-buying routines. Not
surprisingly, the four-store chain is investing in major renovations, and
last year it purchased another store. And its managers are confident
the coming industry earthquakes will spare them.
Maybe the problem isn't too many stores, but too many stores not
focused on where their future growth lies.
Andy Nelson
ANELSON@SOSLAND.COM
instore * OCTOBER 2017 * 3
Table of Contents for the Digital Edition of instore - October 2017
instore - October 2017
Editor's note - Smart Growth
CONTENTS
Spotlight - BY THE NUMBERS: Muffins
Merchandising - ON DISPLAY: Holiday party trays
Cover story - Built on Service
No delivery too small
Commissary Insider - October 2017
Insight Insider: Wakefield Sandwich leverages c-store foodservice growth
Food Safety: Using probiotics to fight pathogens
Equipment: Accuracy, flexibility key in cake depositing
Tech: TrueCommerce EDI helps King’s Hawaiian
News - Need to know
Market research - Super consumers
Category perspective - Private label
Equipment & packaging - LATEST INNOVATION: Tamper-evident packaging
Product trends - FIRST TO MARKET
Product showcase
No label
AD INDEX
instore - October 2017 - instore - October 2017
instore - October 2017 - 2
instore - October 2017 - Editor's note - Smart Growth
instore - October 2017 - 4
instore - October 2017 - 5
instore - October 2017 - CONTENTS
instore - October 2017 - 7
instore - October 2017 - Spotlight - BY THE NUMBERS: Muffins
instore - October 2017 - 9
instore - October 2017 - Merchandising - ON DISPLAY: Holiday party trays
instore - October 2017 - 11
instore - October 2017 - Cover story - Built on Service
instore - October 2017 - 13
instore - October 2017 - No delivery too small
instore - October 2017 - 15
instore - October 2017 - 16
instore - October 2017 - 17
instore - October 2017 - 18
instore - October 2017 - Insight Insider: Wakefield Sandwich leverages c-store foodservice growth
instore - October 2017 - com - 2
instore - October 2017 - com - 3
instore - October 2017 - com - 4
instore - October 2017 - com - 5
instore - October 2017 - Food Safety: Using probiotics to fight pathogens
instore - October 2017 - com - 7
instore - October 2017 - Equipment: Accuracy, flexibility key in cake depositing
instore - October 2017 - com - 9
instore - October 2017 - com - 10
instore - October 2017 - com - 11
instore - October 2017 - Tech: TrueCommerce EDI helps King’s Hawaiian
instore - October 2017 - com - 13
instore - October 2017 - com - 14
instore - October 2017 - com - 15
instore - October 2017 - com - 16
instore - October 2017 - News - Need to know
instore - October 2017 - Market research - Super consumers
instore - October 2017 - 21
instore - October 2017 - 22
instore - October 2017 - 23
instore - October 2017 - Category perspective - Private label
instore - October 2017 - 25
instore - October 2017 - 26
instore - October 2017 - 27
instore - October 2017 - Equipment & packaging - LATEST INNOVATION: Tamper-evident packaging
instore - October 2017 - 29
instore - October 2017 - Product trends - FIRST TO MARKET
instore - October 2017 - 31
instore - October 2017 - Product showcase
instore - October 2017 - No label
instore - October 2017 - AD INDEX
instore - October 2017 - 35
instore - October 2017 - 36
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