Adjusting to Changing Landscape of Prepared Foods

Supermarket News reports that retailers need to reposition their prepared foods line in order to stay afloat as demand for prepared meals spikes, according to a study by Acosta Sales & Marketing in Jacksonville, Florida. To be exact, 27% of shoppers go to supermarkets just to buy a prepared meal. The need to meet the “increasing desire for convenient, healthy and economical prepared meal solutions” is real. The study identifies three main considerations in the shifting supermarket shopping landscape:

  1. Millennials
  2. Convenience of buying meals out to eat at home
  3. Digital shopping

For operators interested in repositioning their aligning their prepared foods with the new face of the consumer market, the study suggests the following:

  • Ensure adequate signage and promote prepared foods throughout the store.
  • Offer value menu options and low-calorie versions of home-cooked favorites like pizza and macaroni and cheese.
  • Offer ready-to-eat options that would typically take a long time to prepare at home, such as barbecued or slow-cooked foods.
  • Offer a variety of ethnic meal options geared particularly to the Millennial consumer.
  • Focus on add-on sales, since nearly half of shoppers studied said they purchased additional prepared items besides those they had planned to buy.

Starbucks Benefits From Transfer of Store Sales to Online Sales

For the first time online traffic has surpassed foot traffic this past holiday season, according to Starbucks CEO/president and chairman Howard Schultz. A large majority of consumers also opted to purchase gift cards as opposed to gifting specific products.

Fast Casual reports that Starbucks processed more than 40 million new card activations valued at more than $610 million in the U.S. and Canada during Q1. This included 2-plus million new activations per day in the period immediately leading up to Christmas, and $1.4 billion of card loads globally, Schultz said.

Starbucks is not only benefitting from the transfer of store sales to online sales, but also the gain of new customers who purchased gift cards. Most of of the gift card recipients were first-time Starbucks purchasers, thereby strengthening opportunities for brand loyalty.