We spend a lot of time talking about e-commerce, and the threat it presents to brick and mortar retail, but the biggest threats aren’t in fresh…for now.
Here’s a great example:
My husband works across a few blocks from the original Central Market store by San Antonio-based H.E. Butt Co. It’s a foodie’s paradise. Even though he brings his lunch to work almost every day, he goes there on his lunch break just to get out of the office, and to explore the amazing themed promotions Central Market offers.
No other retailer does the kind of wacky all-out promotions like I see at Central Market. Their Hatch Chile fest every August was a forerunner to the roasters we see all over retail these days. (more on that from Produce with Pamela coming soon!)
During a promotion of the United Kingdom, Brian fell in love with these dry, tasteless oatcakes.
They’re bland, kind of greasy, a little salty, yet somehow strangely appealing. Even my kids love them.
In the months following the promotion, Brian has been buying these things on the regular – maybe twice a week. I’m sure the cracker category buyer is terribly confused. Surely no one would keep coming back for something as odd as this, on such a regular basis? Maybe they’ve hit the jackpot and clued in a secret Scottish community in Central Austin?
This morning, I got fed up with the $3 or $4 (he can’t remember how much they cost – this is how much my husband loves these things) he’s spending a couple of times a week, and I looked them up on Amazon.
Boom. Here they are, and they’re even Amazon’s Choice!
Sorry, Central Market. I can’t justify having him pay $3 or $4 each when I can get them on Amazon for $2, with free Prime shipping.
Retail remorse
And here’s where I, as a grocery industry observer, feel a pang of sadness for what I’ve just done. I’m that guy. I’m abandoning the careful planning and brilliant execution of my local retailer so I can save a few bucks online.
The good news is Central Market is one of the best operators out there when it comes to promotions and building the excitement that keeps consumers coming back.
The bad news is not every grocery operator can thrive in this space.
As a whole, the grocery landscape has too much physical square footage, and the ones who don’t differentiate are going to lose.
What kind of unique offering will traditional grocery operators bring to the consumer to keep them coming back?
It’s gotta be fresh.
