Farmers who want to know what’s coming in food retailing ought to visit a Longo’s supermarket.
“They are considered the most innovative in North America,” says John Scott, president and ceo of the Canadian Federation of Independent Grocers.
Even Wegman’s, a supermarket chain in upper New York State, respects Longo’s, he said. For years a trip to Wegman’s provided a good idea about what Loblaws would be doing within the next three to five years.
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| John Scott |
Scott said Longo’s is innovative across a broad front, but it is the stores’ produce section that is a favourite with shoppers.
The buzz in the industry this year is what the entry of Target will bring, he said.
Sobeys has signed a deal to supply Target’s groceries, just as it did when Wal-Mart began selling groceries in Canada. Wal-Mart is now on its own and is gaining market share as shoppers see that it is able to offer a full range of groceries, meats and fresh produce at highly-competitive prices.
Target will be up against Loblaws’ Supercentres and Wal-Mart in terms of store size and pricing.
Scott said the more than 4,000 independent grocers who have joined his association since it launched in 1962 are in a different competitive category.
He is urging them to “stick to your knitting,” the factors that have helped the remain competitive so far.
The market is splintering into retailers who cater to specific ethnic groups, to geographic communities – eg. the buy local movement – and commodities.
Scott said shoppers no longer go to one store to buy everthing, but will pick up paper goods at Costco and while they’re there will buy meat and will go to Longo’s for produce.
“They are shopping at different stores for different things,” he said.
That’s a trend that suppliers need to watch to ensure they maintain access to the customers they want.
Scott said another major trend now is increased consumer awareness about the link between food and health.
That’s why Grocery Innovations, the big trade show the association puts on every year in Toronto, will be featuring seminars during this week’s show that begins Monday at the Toronto Congress Centre.
Another trend is the fast-increasing use of Twitter and Facebook to draw attention to new products and services retailers and food suppliers are offering, Scott said.
In the space of three minutes during a telephone interview, he noted that three companies sent him Twitter notices about new things they’re offering, companies such as Nature’s Path and Longo’s.
The people who are in their 20s and 30s are using Twitter and Facebook to find the foods that interest them and the stores that are stocking them.