Grocery stores that open in 2023 will be different in three key ways.
New-built grocery stores in the future will be smaller to allow for lower break-even levels. Most will have a total footprint of less than 30,000 square feet, and some will be even smaller – less than 12,000 square feet.
These stores will compete more aggressively for “every meal, every day, every week,” as well as for share of wallet. They will also furnish comfortable seating for eating in the store.
The combination of fresh and unique packaged products will be what makes the store a destination. These stores will encourage frequent shopping and deliver a great shopping experience.
New stores will offer a complete range of packaged groceries, but these won’t be presented in the traditional center store layout.
Shopper, retail, and technology trends are combining to drive these changes.
Consumers are moving toward two key shopping occasions: fresh/discovery and replenishment.
This change in shopping behavior is reinforced by:
Retailers face increasing pressure to reduce operating costs and sharpen their differentiation versus competition.
Several developments will enable a retailer to efficiently serve either or both shopping occasions.
The trends driving the grocery store of the future – shifting customer preferences, the pressure on retailers to improve profitability, and improving technology – are already making themselves felt in the marketplace. As new stores are built in response to these trends, the majority of existing stores will need to make adjustments to accommodate the same needs and economic pressures.
Making the shift to the store of the future, whether new or remodeled, will be easier when both retailers and suppliers work from the same mindset – one that that enables them to: