Getting a Piece of the Healthy Pie
Conventional supermarkets’ wellness strategies need to evolve.
Whole Foods Market, Sprouts Farmer’s Market, Alfalfa’s and Trader Joe’s know how to attract health-minded customers. Their customers know that when they walk into one of these stores, they’re going to find an abundance of healthy choices, they’re willing to pay premium prices, and most are die-hard, loyal shoppers.
It’s no wonder that conventional grocery retailers are trying to figure out the magic formula to capture the attention of this shopper segment. Unfortunately, many use outdated thinking and strategies that simply don’t work. Here are a few insights for grocers seeking to get a bigger piece of the natural, organic and health-conscious consumer segment.
Tell A Good Story
Health-minded shoppers may be more informed and educated on health topics before arriving at the store, or it’s possible that they’ve simply become more attuned to issues that are key selling and differentiation points. In any Whole Foods produce department, the company promotes local farms and farmers. You’re bombarded with mostly organic choices and rustic-looking displays to give the impression that you’re at the local farmers’ market. There’s even a free sample to tempt your taste buds into a purchase.
Natural retailers do a stellar job of communicating to their customers across all of their perishable departments by telling them compelling stories — where the food is from; how it was raised, processed and prepared — and they back up these stories with great-looking fresh products.
Rethink the Center Store
Merchandising strategies in conventional grocery stores need a radical overhaul to attract health-minded customers. IRI and Nielsen data continues to demonstrate that packaged goods are declining categories mainly because younger shoppers have little interest in cooking and, therefore, little need to stock their pantries.
If you’ve ever visited a Sprouts, then you’ll have a good idea of how successful grocery stores of the future will be designed. The company has turned the model inside-out, redesigning center store to focus on fresh and bulk items, and has devoted most of the remaining store to perishable items, including open freezers stocked with natural frozen quick-meal items and healthier dessert items. There are few aisles of pantry items, and more space dedicated to higher-velocity packaged items such as energy bars, cereal and healthy drink options.
My mother never wanted to spend an extra second in the grocery store, because her goal was to get out quickly and prepare a hot meal at home. However, today’s shopper, like me, stops at the grocery store, foraging for something healthy to eat on the spot or within minutes of arriving home. An in-store wine bar like those at Whole Foods and now some Safeway stores makes sense, especially if the retailer offers prepared meals, too. After a glass a wine, I may even spend a few more dollars on dessert!
In-store Nutrition Experts
Hannaford, Hy-Vee, Giant Eagle and King Soopers are among the conventional retailers using registered dietitians (RDs) as secret weapons against the competition by offering their customers expert nutritional guidance. Helping customers prevent, manage and treat chronic diseases is a great way to build customer loyalty and drive sales.
Communication, merchandising and customer service will play a key role in determining the future of health and wellness in conventional retail formats. However, traditional grocers that evolve the quickest and address the needs of the modern-day consumer are the ones that will survive.
Traditional grocers that evolve the quickest and address the needs of the modern-day consumer are the ones that will survive.