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Consumers Drawn to Small Food Stores

April 22, 2008

The future retail landscape will be filled with an increasing number of small-store food concepts as retailers strive to capture the attention of busy consumers, TNS Retail Forward reports. Recently released TNS Retail Forward ShopperScape survey results indicate that shoppers are ready and willing to shop the new breed of small food concepts.

"The combination of small size and a fresh, prepared foods emphasis is a compelling offer for the time-pressed shopper," comments Jennifer Halterman, senior consultant with TNS Retail Forward and author of the recently published Retail Perspectives report entitled Small Stores, Big Trend. "The small-store trend, which more players are beginning to explore, is part of an ongoing evolution in the retail food sector, and we expect more players to throw their hats into the ring," she continued.

U.K.-based Tesco is establishing a small-store presence with its Fresh & Easy rollout in the United States. Not surprisingly, large U.S. food retailers such as Wal-Mart and Safeway are reportedly planning to open small-scale grocery concepts of their own in their quest to take advantage of the demand for convenience, attract the aging Baby Boomer, search for new growth vehicles, and round out their store portfolios.

TNS Retail Forward's ShopperScape research indicates that two-thirds of shoppers would definitely or probably shop a small food concept that places emphasis on convenience and fresh, prepared foods.

The small-store food concept attracts shoppers in various shopping modes from fill-in/quick replenishment and immediate consumption to grab-and-go.

"The jury is still out on whether small-format food stores will meet shopper expectations and company return on investment objectives going forward," Halterman notes.

"Food retailers considering a small-store strategy must monitor and analyze shopper needs, attitudes and expectations well in advance of launch. They should also seek input from consumer goods manufacturer partners and pay close attention to local area demographics and cultural differences," Halterman concludes.


Consumers Drawn to Small Food Stores

April 22, 2008

The future retail landscape will be filled with an increasing number of small-store food concepts as retailers strive to capture the attention of busy consumers, TNS Retail Forward reports. Recently released TNS Retail Forward ShopperScape survey results indicate that shoppers are ready and willing to shop the new breed of small food concepts.

"The combination of small size and a fresh, prepared foods emphasis is a compelling offer for the time-pressed shopper," comments Jennifer Halterman, senior consultant with TNS Retail Forward and author of the recently published Retail Perspectives report entitled Small Stores, Big Trend. "The small-store trend, which more players are beginning to explore, is part of an ongoing evolution in the retail food sector, and we expect more players to throw their hats into the ring," she continued.

U.K.-based Tesco is establishing a small-store presence with its Fresh & Easy rollout in the United States. Not surprisingly, large U.S. food retailers such as Wal-Mart and Safeway are reportedly planning to open small-scale grocery concepts of their own in their quest to take advantage of the demand for convenience, attract the aging Baby Boomer, search for new growth vehicles, and round out their store portfolios.

TNS Retail Forward's ShopperScape research indicates that two-thirds of shoppers would definitely or probably shop a small food concept that places emphasis on convenience and fresh, prepared foods.

The small-store food concept attracts shoppers in various shopping modes from fill-in/quick replenishment and immediate consumption to grab-and-go.

"The jury is still out on whether small-format food stores will meet shopper expectations and company return on investment objectives going forward," Halterman notes.

"Food retailers considering a small-store strategy must monitor and analyze shopper needs, attitudes and expectations well in advance of launch. They should also seek input from consumer goods manufacturer partners and pay close attention to local area demographics and cultural differences," Halterman concludes.

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