Trends & Shifts In Supermarket Niche Marketing

This From Progressive Grocer via FMI -

Supermarkets Move to Specialty Services: FMI Study
MARCH 21, 2006

-- WASHINGTON -- Faced with stiff competition, food retailers are making an effort to stand out from the crowd by rolling out target market-focused stores, and offering more specialty services, according to "Facts About Store Development 2005," the Food Marketing Institute study released yesterday."

Shifting consumer behaviors and attitudes, shorter product lifecycles, new store concepts and competitive pressures from a broad range of retail formats are driving a fundamental change in the way food retail companies do business," noted FMI s.v.p. Michael Sansolo in a statement. "There is no longer a 'one format fits all' supermarket. Understanding the specific needs of your targeted consumers and delivering what they need are essential for success."
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Notable trends outlined in the report include the following:
--Space for cooking demonstrations is offered by 72 percent of new stores, as consumers with less cooking experience who seek to enlarge their range of skills increasingly view cooking as a special event.
--Over half (53.7 percent) of the companies surveyed have a coffee bar in at least one store, and slightly fewer (52.2 percent) have introduced dollar aisles, addressing consumers' dual desires for convenience and value.
--The addition of low-carb food sections appears to be declining, with fewer than half (49.4 percent) of all retailers now offering them.
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