Progressive Grocer

DEC 2016

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40 | Progressive Grocer | Ahead of What's Next | December 2016 Growth Strategies Grocery And grocers see a "huge upside" if they're quick to respond, Nielsen's Rost observes. "Shoppers are looking to fill their shopping carts with healthier items, which provides numerous opportuni- ties for all grocery stores," Bashas' Shick says. "Overall, integrating natu- ral and organic sections and products to the center store is changing the look and feel of every aisle." is applies even to pet food, which is gaining more space in center store, she adds. Pet owners think of them- selves more as "pet parents" and want only the best for Fido or Mittens. erefore, more healthful and natural options here are favored. But free-from, natural and organic products don't have to be the only ones positioned as healthful. Many traditional canned foods can be mar- keted as containing all of the nutri- ents found in their fresh counterparts, but also available year-round and conveniently packaged. Canned fruits and vegetables, for instance, are picked and packed at the peak of freshness and are as nutritious as — or even more nutritious than — their fresh coun- terparts, says Katie Toulouse, communications manager at the Pittsburgh-based Canned Food Alliance. Additionally, canned beans are a conve- nient source of fiber. "Last year, we provided over 60 supermarket di- etitians with toolkits to help them communicate the benefits of canned produce within their stores. is includes a What's Inside the Can display for use in store demos or in media segments," she notes. "It's accompanied by an online toolkit that offers seven themes. Each theme has a recipe, talking points, a sample Tweet and a consumer-friendly educational handout to support the theme." 5 Offer destination private brands: Consider that in 2015, 97 percent of Millennials said that they were more likely to buy store-brand products over name- brand ones, Mintel research shows. Also consider that 70 percent of Millennials who purchase store brands believe that the products are of higher quality than they used to be, and 42 percent even believe that store-brand goods are more innovative than national-brand ones. Now, in an area of the store that could use a shot of innovation, couldn't unique, quality store-brand items have the potential to boost sales — especially among the highly valued Millennial demographic? "In an era of brand agnosticism, retailers have tremendous opportunities to better leverage and capitalize on their private brands," Holbrook points out. "Uniquely positioned to better ad- dress the needs of their trading area, private brands are evolving from national-brand equiva- lents to destination brands, aligning with the latest culinary and wellness trends." For instance, San Antonio-based grocer H-E-B brings hyperlocal food and flavors to private brands via its TX Street Eats product line of food-truck- style foods. And Netherlands-based Ahold Del- haize, at its U.S. banners, creates "artificial scarcity" through its "Limited Time Originals" cross-catego- ry platform, bringing together unique items across the store based on seasonal flavor profiles such as Limoncello and Honeycrisp Apple, available only for a proscribed time. "ese types of approaches to private brands," Holbrook explains, "can help drive traffic while boosting sales — and profitability — of center store." Bashas' Shick agrees: "Private label brands continue to break barriers as they move past a price- only merchandising strategy. Private label items have become more category-specific, like Topco's Simply Done brand for nonedible products, and are attracting new customers in different ways through increased marketing and branding appeals, like Topco's Culinary Adventures brand that targets the Trader Joe's product image." PG Shoppers are looking to fill their shopping carts with healthier items, which provides numerous opportunities for all grocery stores. Overall, integrating natural and organic sections and products to the center store is changing the look and feel of every aisle." —Ashley Schick, Bashas' CLASSY CAPS Bashas' has added designer end caps that create a boutique look at the entrance of center store aisles, encouraging customers to enter and explore further.

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