SN: Will the focus on fresh foods continue to be a high consumer priority for the long term? And if that is the case, how will that affect dry groceries and other nonfresh categories?
r outlets lack the proper storage and handling facilities. HOSEY: Competition from alternative formats has increased so much that we have to try hard to do a lot of things better than they do, and fresh foods -- including quality and variety -- is one way to gain a competitive edge.
The convenience factor will dictate that we carry more fresh foods, with an emphasis on health. That is likely to put a continued squeeze on dry groceries. MATHEWS: The focus on fresh foods will continue, although nonfresh convenience products will also be very important. But I don't think dry groceries or nonfoods will get squeezed out of the stores by fresh, because grocery is a big percentage of the business and nonfoods are convenient and also make a lot of money for the stores. McEWAN: Fresh foods will continue to enjoy measured growth, and we must change our emphasis in training programs and the stores' physical structure to accommodate that. However, growth will not be explosive because the industry has learned it's more difficult to market fresh, ready-made products than to merchandise products in a can.
There will always be a place in the stores for dry groceries. But supermarkets have always reflected the society they serve, and that society has been constantly changing. Just as the number of frozen foods has escalated over the last 10 years, the number of fresh foods available will also be proportionally larger in a decade. That means something will have to go, and if dry groceries are not selling, that's what will go. OMERNICK: There's no question that the trend toward fresh will continue because of consumers' concerns for health and nutrition. And when nutritional labeling becomes mandatory, people will see what they're doing to themselves when they buy products like ice cream specialties, for example, and that will force attention on fresh and push people into those departments.
At Copps we have natural foods departments that feature dry grocery products that are low in salt or fat, and while there may be a big shift to fresh departments, there may be a shift in dry groceries as well as more manufacturers offer more healthy varieties. CROWLEY: The trend to fresh foods will continue, with more organically grown foods offered for sale in supermarkets. But first the Food and Drug Administration is going to have to define "natural."
MOORE: We're offering consumers more options by selling organic produce. When we added organic produce, we found that it didn't take sales away from other items but added sales. So we've expanded the organic selection.
STEINBACH: Fresh will definitely continue to be a priority for the long term. But we must combine fresh foods with convenience. We had to reset the produce departments because of the popularity of prepared salads and precut vegetables, and we'll have to do the same in other departments to accommodate more heat-and-eat entrees.
