Fresh format lead retail gains - The Packer

Fresh format lead retail gains

06/20/2013 12:20:00 PM
Tom Karst

Willard Bishop predicts fresh format sales will 13.4% yearly, with aggressive new store plans and same-store sales growth above 5% per year. Extreme value stores are projected to grow 6.2% on a yearly basis, with increasing numbers of dollar stores and gains in discount retailer Aldi under the radar. Aldi is adding about 80 stores per year, mostly in mid-upscale neighborhoods.

In a question and answer session, Hertel said the trend of local food presents retailers with a question of what local means to their consumers.

“Different retailers are tying to balance how far out do they go (for product_ and credibly claim local,” he said. “What truly is local? Is it 50 miles, 100 miles, or within that state?”

Hertel and said that local food appeals to the baby boomer demographic and also can satisfy the demand for organic produce from millennial consumers.

One challenges for creating a “local food” identity is sourcing produce during the winter. Hertel said that companies who focus on aggregating local produce production in a particular market can be a great resource for retailers, he said.

“For all the wrinkles we talked about with local food, someone who can specialize in that and off-load a lot of the problems and frustrations from the retailers should have tremendous opportunities,” he said.

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