Packaged grocery is a fixture that some retailers are happy to just leave ‘ticking along’. Conventional wisdom tells convenience stores to stock a mainstream brand and a value option for each variety and let the category just do its job.
But with convenience shoppers becoming more value conscious in recent years, retailers have shifted their focus towards grocery.
“Traditional tinned foods continue to be popular – and they’re good products to stock for our demographic, which evolves throughout the year, from students to older families,” says Meten (Mike) Lakhani, owner of St Mary’s Supermarket (Premier) in Southampton.
“It’s largely due to the cost-of-living crisis and the need for value. These tins help shoppers get to the end of the month, which is also why we stock price-marked packs for tins,” he adds.
Although there’s a clear demand for value items, retailers are also capitalising on increased interest in the market by diversifying their ranges with products that deliver on different tastes and market-leading flavour. This is where the opportunity to build a premium grocery range comes in.
Convenience grocery is driven by meal solutions
Providing meal solutions is how you can ‘level up’ your grocery range. It also helps you meet the demand for value. Think fresh – or tinned – ingredients suitable for cooking from scratch.
Avtar (Sid) Sidhu, owner of St John’s Budgens in Kenilworth, Warwickshire, says you need to keep things simple.
“Customers want convenience as they’re busy and want to whip up a meal as quickly as possible, so consider this when upgrading your grocery range,” he says.
Think about which meals you want to focus on and then write a list of what you’ll need from your supplier. If you want a more premium option, a local supplier might be able to help, or we can certainly provide these products, too.
For example, you could include:
- Fearne & Rosie Jam – This reduced-sugar range of jams is available in four flavours: Strawberry, Superberry, Blackcurrant and Raspberry. They come in cases of six.
- Indomie – These instant noodles are for time-poor shoppers and are available in two varieties: Spicy Mi Goreng and Chicken.
- Pasta Nostra – Available in Bolognese, Carbonara, Cheese & Black Pepper and Arrabbiata flavours, the Pasta Nostra range is ideal for shoppers to add additional ingredients to ‘level up’ their meals.
Sidhu also adds that meal kits are a popular alternative for shops that are limited on space. “Customers are more adventurous than ever before,” he says.
Some options we stock here at Epicurium include Fiid Meal Pouches in three varieties: Smoky Black Chilli, Rich Sundried Tomato & Lentil Rahu and Lentil & Sweet Potato Curry. Alternatively, stock our Itsu Grocery range in Chilli Miso or Traditional Miso.
Make grocery a standout category
Every retailer knows the way to drive sales is with stand-out merchandising and a clear flow.
If you’re going for a more balanced approach with your grocery, and plan to include a value and premium option, then you have two strategies to consider: Place value and a premium option together to encourage trade up or create a dedicated premium section.
The dedicated area can be ideal for linked purchases, but stocking the value and premium options together can also achieve this by merchandising linked purchases as a flow. The right option will depend on your demographic.
Go beyond your store’s four walls
If you’re looking for more ways to drive sales, see if you can offer a full meal solution beyond your walls. This can be through delivery services, or as Sidhu has introduced, food trucks.
“On a weekly basis, we have food trailers at the store, and we’re now booked up until October,” he says. “We have around 20 different types of food on rotation, including pizza, chicken wings, burgers and Greek. It’s anything and everything.”
Sidhu has been organising food trucks outside his store for the past two years and started by using social media to find businesses. Now, through social media and word of mouth, he has businesses contacting him.
The retailer liaises with the food companies, giving them a slot, and charges them £20 for electricity. Any staff working that day will also receive a free meal.
“It’s great for the team and customers, and everyone has bought into the concept, as it’s a win-win,” he says. “We aren’t charging hundreds in pitching fees and we’re getting incremental sales, as well as becoming a hub for the local community.”
But that’s not all. This helps him drive incremental grocery sales in store.
“Shoppers come in and buy top-up items like sauces, tins, etc. and then buy from other categories, too, from soft drinks to alcohol,” he says.
How can you build a strong grocery range?
If you haven’t analysed your grocery category for a while, it might be time to review your range and delist any products that haven’t generated high sales over the past six months.
Once you’ve done that, these top tips from Lakhani and Sidhu will help:
Don’t become stagnant – “Don’t leave your grocery range in situ – flex your categories for different seasons and generate sales with limited editions and new lines,” Sidhu concludes.
Keep a wide range – “You can’t just stock one aspect of the meal,” Lakhani says. “You have to offer a broad range of the staples and then layer premium lines on top.”
Consider price-marked packs – “Value is at an all-time high and you might be able to offer premium at a value price by stocking price-marked packs,” says Lakhani.
Start with your supplier – “Your supplier is the backbone of your range,” says Sidhu. “Look at what they stock and then start building from there.”
Be strategic – “You need to look at your grocery range in a strategic way. Look at what you’re doing with your range and chillers and view it in the eye of current consumer missions – is it easy to shop?” Sidhu continues. “Can you add anything that increases your value to them as a store?”
