Article · January 1, 2024

The Great Grocery Shakeout: A Shift in Store Dynamics - Chute Gerdeman

Chute Gerdeman - award-winning retail design and branding: Retail Experience Design

The Great Grocery Shakeout: A Shift in Store Dynamics [vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=””][vc_column][rev_slider alias=”creative-freedom”][/vc_column][/vc_row][vc_row bg_type=”color” padding_top_multiplier=”3x” padding_bottom_multiplier=”2x” separator_bottom=”round-split-separator” separator_bottom_color=”#faa633″ bg_color=”#f8a541″][vc_column column_custom_position=”yes” width=”1/2″ heading_color=”light” font_color=”#ffffff”][movedo_title heading_tag=”h2″ heading=”h1″ increase_heading=”160″ custom_font_family=”custom-font-1″ animation=”grve-zoom-in”]32 million Americans head to the grocery store every day.[/movedo_title][/vc_column][vc_column column_custom_position=”yes” position_top=”2x” width=”1/2″ font_color=”#ffffff”][vc_column_text text_style=”subtitle” animation=”grve-zoom-in” animation_duration=”slow”] That’s 1 in 7 consumers shopping at any given moment. Multiply the 1.5 trips taken per week and the average 41 minute trip it takes to shop, and that’s over 53 hours per year consumers are spending in the grocery store. So, is Amazon really leading its competitors in the grocery industry?

In terms of loyalty, we think it might.[/vc_column_text][/vc_column][/vc_row][vc_row bg_type=”color” padding_top_multiplier=”2x” padding_bottom_multiplier=”6x” separator_top=”curve-right-separator” separator_top_color=”#faa633″ separator_bottom=”curve-left-separator” bg_color=”#faa633″][vc_column column_custom_position=”yes” position_top=”1x” position_bottom=”5x” heading_color=”light” font_color=”#ffffff”][movedo_title heading=”h2″ line_type=”line” line_color=”orange” animation=”grve-fade-in-up”]Today’s Consumer[/movedo_title][vc_column_text]When it comes to the reality of today’s consumer, loyalty has diminished. Shoppers are falling out of love with traditional rewards; over 40% go to more than one store to get all the things they need. And, while price and promotion are the most influential factors for where consumers decide to buy, loyalty today requires not only AI (artificial intelligence) but also EI (emotional intelligence).

You can have all the data available to understand brand affinities, category engagement, visit cadence, cart contents, and lifestyle choices, but if you’re not building in an in-store connection it’s a fruitless effort of analysis.[/vc_column_text][movedo_empty_space][movedo_title heading=”h1″]What can be done to improve the relationship between the consumer and the store?[/movedo_title][movedo_empty_space][/vc_column][/vc_row][vc_row padding_top_multiplier=”3x”][vc_column heading_color=”dark”][vc_column_text]As forward-thinking strategists and designers, we’re always looking ahead to predict what consumer behaviors and cultural trends tell us about what’s to come. Considering the current state of the landscape, we see a future of multiple models: consumer-centric concepts based around a variety of spending behaviors and lifestyle needs. These needs have cultivated a transformative consumer journey, but in a world where consumers search for cheaper, better options, a familiar question continues to resurface.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][movedo_divider][/vc_column][/vc_row][vc_row bg_type=”color” padding_top_multiplier=”3x” padding_bottom_multiplier=”3x” bg_color=”#ffffff”][vc_column column_custom_position=”yes” position_bottom=”minus-1x” css=”.vc_custom_1521644259981{margin-top: -10% !important;}”][movedo_title heading=”h2″ line_type=”line” line_color=”orange” animation=”grve-fade-in-up”]A Wellness Destination[/movedo_title][vc_column_text]The global wellness industry is a $3.7 trillion market.

Emphasis on the proactive maintenance and improvement of health and well-being calls for consideration of a concept where food is the fuel and a wellness solution. How often is a trip to the gym followed by a stroll through the grocery store? What we see is a holistic-food experience beyond consumption.

Here, health is connected through trainers, nutritionists, dietitians, and educational forums. The grocery store becomes a beacon of advice related to all things food, information, and equipment. With central access to the same information, the overall infrastructure enables dietitians to craft meal plans based on consumer purchases, trainers around fitness goals, and health experts armed to help guide individuals through their most desired lifestyle.[/vc_column_text][/vc_column][/vc_row][vc_row heading_color=”light” section_full_height=”fullheight” bg_type=”hosted_video” bg_image=”27035″ color_overlay=”dark” opacity_overlay=”40″ bg_video_mp4=”https://www.chutegerdeman.com/wp-content/uploads/2018/03/opt-588729405.mp4″][vc_column column_custom_position=”yes” width=”1/2″][movedo_empty_space height_multiplier=”2x”][movedo_title heading=”subtitle-text” increase_heading=”160″ custom_font_family=”custom-font-1″]Brands that will have the biggest impact are the ones[/movedo_title][movedo_title heading=”subtitle-text” increase_heading=”140″]that will make it accessible to more people to live a balanced life in mind, body, and soul.[/movedo_title][movedo_title heading=”small-text” align=”center”]-Katie Guhen, The Wellness Report[/movedo_title][movedo_empty_space][/vc_column][vc_column width=”1/2″][/vc_column][/vc_row][vc_row bg_type=”color” padding_top_multiplier=”3x” padding_bottom_multiplier=”3x” bg_color=”#ffffff”][vc_column column_custom_position=”yes” position_top=”2x” position_bottom=”minus-1x” css=”.vc_custom_1521657418900{margin-top: -10% !important;}”][movedo_title heading=”h2″ line_type=”line” line_color=”orange” animation=”grve-fade-in-up”]A Pop-Up Appeal[/movedo_title][vc_column_text]The proliferation of pop-up retail has gained industry recognition over the years with brands and retailers interested in short-term leases, and a way to test concepts before commitment to scale.

Generating excitement, building awareness, and reaching new customers are just a few reasons why these concepts have been a success. Enter the opportunity for the center store to truly “pop” with temporary activation spaces for brands. Creating experiential elements within the center store gives grocers and CPG brands the opportunity to drive foot traffic in aisle.

We believe rotating through a set of featured brands to help encourage, increase, and engage shopper curiosity and to instill a sense of allurement.[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][vc_column_text]Recently, snack food brand Cheetos, opened The Spotted Cheetah restaurant in New York with a cheese-tastic, one-of-a-kind menu. Crafted by celebrity Chef Anne Burrell, the menu included[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″ css=”.vc_custom_1521675131766{margin-right: -30% !important;padding-top: 12px !important;}”][movedo_title heading=”subtitle-text” increase_heading=”140″ margin_bottom=”1%”]”I wouldn’t call this a fad, it’s another retail channel.”[/movedo_title][movedo_title heading=”small-text”]-Debbi Hauss, Editor of Retail Touchpoints[/movedo_title][/vc_column_inner][/vc_row_inner][vc_column_text]Cheetos Crusted Chicken Milanese and Flamin’ Hot and White Cheddar Mac n’ Cheetos. Imagine bringing a modification of that cheesy concept in-store, giving consumers an experiential way to interact with the product, while also thinking more creatively about their eating.

Cheetos become a whole lot more than just a snack.[/vc_column_text][movedo_empty_space][vc_row_inner][vc_column_inner width=”1/2″][movedo_single_image image=”25635″][/vc_column_inner][vc_column_inner width=”1/2″][movedo_single_image image=”25636″][/vc_column_inner][vc_column_inner][vc_column_text] Google Images [/vc_column_text][/vc_column_inner][/vc_row_inner][movedo_empty_space][vc_column_text]This pop-up potential is not exclusive to food; instead, it’s about the education, exploration, and entertainment behind the experience. Catering to shoppers’ desire for customization, skincare brand St. Ives recently launched a temporary “Mixing Bar” in Soho to invite guests to see, smell, touch, and create custom St.

As a legacy brand, this type of experience–when brought in-store, even temporarily–could encourage even the youngest of consumers to consider a new skincare solution.[/vc_column_text][movedo_empty_space height_multiplier=”custom” height=”1.8x”][vc_row_inner][vc_column_inner width=”1/2″][movedo_single_image image=”25637″][/vc_column_inner][vc_column_inner width=”1/2″][movedo_single_image image=”25638″][/vc_column_inner][vc_column_inner][vc_column_text] Google Images [/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][movedo_divider][/vc_column][/vc_row][vc_row padding_top_multiplier=”” padding_bottom_multiplier=”3x”][vc_column column_custom_position=”yes” position_bottom=”minus-1x”][movedo_title heading=”h2″ line_type=”line” line_color=”orange” animation=”grve-fade-in-up”]Membership Model[/movedo_title][vc_column_text]People are responding to simpler models like membership services. The old school method of big-box memberships gave individuals the freedom to shop for what they wanted, but consider a model that uses membership information to understand not only individual consumer purchases, but also community purchases. In essence, the store is stocked with product not based on what the retailer wants to sell; instead, the product is driven by consumer wants and needs.

Shoppers are helping to inform future purchasing behaviors, inevitably resulting in a more efficient model. Using predictive analytics through the grocer can suggest similar products in the attempt to continuously expose consumers to new items. And, as “members” this model allows them to also implement an automated checkout experience.[/vc_column_text][movedo_empty_space][vc_row_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1521645464176{padding-top: 7% !important;}”][movedo_title increase_heading=”120″ align=”center” margin_bottom=”-1%”]”[/movedo_title][movedo_title heading=”subtitle-text” increase_heading=”120″]Selling food won’t be enough .