December 2011
Widespread mobile payments getting closer
The future of retail checkouts will soon be in the hands of consumers, as smartphones engage even more fully in the world of wireless payments.
Supermarkets and other food-sellers should prepare for two developments:
- Wave-and-pay systems made possible by Near Field Communications (NFC). Apple patents already describe how shoppers would “sign” with their iPhone instead of a PIN when paying, reports Fast Company.
- The widespread use of RFID (radio frequency identification) technology, expected by many to be economically conceivable for tracking packages once the cost of RFID chips drops below half a penny apiece.
Inflation fills the retail food aisles
Supermarkets grew their average basket size to $42.52 by mid-2011, up from $41.85 a year earlier, showed Nielsen Homescan data, released within the U.S. Retail & Buying Trends report a week before Thanksgiving.
Attribute the gains to higher food prices and families eating at home more, says F3, also noting that more households have multiple generations living under one roof - often college graduates who returned home due to poor job prospects and their elderly grandparents who need care.
Hot deals in supermarkets: ten-for-$10
With ten-for-$10 promotions, supermarkets mimic the feel of one of their growing rivals – dollar stores, which have raised their trips per household to 13 in mid-2011, up from 11 ten years earlier. Over the same period, supermarkets have lost trips to multiple channels; households now shop there 57 times a year compared with 72 times in 2001, according to Nielsen Homescan data.
Shoppers are so focused on price today, why wouldn’t supermarkets try to capture the fun, treasure-hunt feel of dollar stores with ten-for-$10 promotions? Over the past decade, the value impression of dollar stores has helped it increase household penetration more than any other retail channel except supercenters. Their aggressive expansion of food is also a key shaper of this trend: Homescan data show dollar stores now have a 65% household penetration, up from 59% in 2001; supercenters grew to 73% from 51%; supermarkets went to 99% from 100%.
Safer food worth more to consumers: Harvard
U.S. consumers are willing to pay more to help reduce risk of E.coli and salmonella outbreaks and other foodborne illness, according to Harvard University heath research, funded partly by the Economic Research Service of the U.S. Department of Agriculture and published in the journal Risk Analysis.
But how much more, and in which circumstances?
This picture is complex, says F3, not only because of nuances detailed in the study, but also because many Americans probably think they shouldn’t have to pay for extra protection when government already regulates the food industry. One analogy is how some shoppers feel they’re entitled to a discount if they use a self-checkout lane in a supermarket; they’re doing the work of the cashier and bagger, after all. These emotions are real, and they affect consumer behavior.
Food Security Depends on Girls
Girls are the key to unlocking the full productive potential of agriculture in poor countries, says a recent report from the Chicago Council on Global Affairs. Their report, Girls Grow: A Vital Force in Rural Economies, highlights the importance of girls, who are the backbones of rural economies, in becoming agents of social and economic growth in their homes, communities and nations.??
More than 80% of rural households in the developing world rely on farming to some degree, and the majority of these farmers are small farmers, working on plots of land that are less than five hectares. Population growth, environmental degradation, and land divisions have led to scarcities in land and water resources, as well as increased concerns about food security and food price volatility. Supporting these small farmers – especially women – is vital to environmental protection efforts and increasing overall agricultural capacity.
Food passions can surface in supermarkets
By adding new levels of food passion and entrepreneurism to the supermarket labor force, stores and their prepared-food offerings could become more competitive and appealing than ever. Stores could become much more than distributors and merchants of food products – they could bring new creativity and excitement to edibles, and help make family the food-buying trip far more satisfying.
Where will this passion and business-building energy come from? These traits are available in new talent pools that supermarkets could mine – if they’re among early movers to court them.
Fresh meat and football a winning combo
Here’s a way for supermarkets to associate their fresh meat offerings with the ultimate guy fun (many women participate too) of football tailgating. Set up refrigerated meat vending machines in or near stadium parking lots, where large blocks of ravenous fans secure spaces, park for hours before and after games, grill plenty of food, drink beer, play catch, socialize and stretch a three-hour spectator event into a full-day gathering.
The principle is the same at college, high school and community ball fields, where people tailgate not only to enjoy more time outdoors, but also to show off their gear and grilling skills. Supermarkets that work out the logistics and licenses to place fresh meat (give people a choice of marinated or not) can become a much-appreciated solutions provider, and gain profits and branding exposure in the process.
2012 FOOD TRENDS TO WATCH: Food Prices
Phil Lempert, SupermarketGuru, Editor In Chief, Facts, Figures & the Future
2011 brought us higher food prices at unprecedented levels, crops and livestock destroyed by global weather catastrophes, nations at war over the lack of food supplies and more food recalls from unique points of origin. Americans love their foods – in supermarkets, on television, at restaurants and now even on their mobile phones – we are a nation obsessed with food trucks, molecular gastronomy and struggling to eat as local as we can. All of which has built a foundation for what may be one of the most exciting – and game-changing years in the food world: Welcome to Food 2012.
