As you page through this big issue of SN, you'll see the "Next Wave in Food Retailing" logo sprinkled throughout each of the weekly sections and on the front page. The same logo is inset in this column.
Of course, it isn't the logo that's so important; what is important is the concept it identifies. The concept is that supermarket retailers are now looking ahead to determine how they will remain competitive. So, in a bid to identify directions that the industry could follow in upcoming years, SN editors have assembled a suite of news articles for this issue that set out some critical thinking. Let's take a look at each of the sections to find out a little of what is projected:
RETAIL/FINANCIAL SECTION: Executives with overall enterprise responsibility are of the opinion that there are significant changes ahead for the industry. Weaker stores are destined to atrophy. Successful stores will be characterized by larger perishable departments and better pharmacies, to cite just a couple of expected changes. One provocative thought in that vein is this: "Why should drug stores exist if supermarkets are doing their job?" See more on this, Page 19.
NONFOOD STRATEGIES: Housewares in supermarkets: They've always been there to some extent, but is there a way to better leverage the category? The better way is to move to the edges: For some stores, it makes sense to offer dollar-price-point selections to build volume. At others, moving to higher quality and more costly product can plump margins. The trick is knowing which way to go. Page 81.
FRESH MARKET: The shape of change for supermarket fresh departments is already coming into view. Not only are such departments likely to increase as a percentage of store distribution, but they are already undergoing change in the products typically offered. They are going toward more branded products, a wider array of convenience offerings and premium items, often in a service context. Page 91.
CENTER STORE: Not totally unlike what awaits perishable departments, center store departments are likely to increase their offer of convenience. That will be done by means of information about products' nutritional qualities together with better presentations of specialty items such as organic and natural food. At the base of the challenge for this department is demonstrating the value it offers over alternatives, such as fast food. And changes must include a more pleasant shopping environment. Page 115.
TECHNOLOGY & LOGISTICS: There's little question that technological developments are key to supermarkets' future, but how will independents stay in the game? Many wholesalers are providing the answer to that question by upgrading their own technology and taking steps to make sure knowledge is migrated to the stores they supply. See specifically what one wholesaler is doing. Page 122.
While we're on the topic of change, don't miss the news article referenced on the front page about Liz Minyard, the Food Marketing Institute's first woman chair.
