Change and the Top Supermarket Trends in 2014

Commentary From Our Chairman / CEO

Change and the Top Supermarket Trends in 2014

Michael D. Sleeper, Chief Executive Officer, Imperial Distributors, Inc.

In order to better meet consumer needs and their desire to save money, save time, and eat healthier, the best supermarkets will continue in 2014 to re-invent themselves. All of us in the industry need to continue to change to anticipate and respond to the demands of the evolving consumer.

The major trends we see in the coming New Year are:

1. Consumers will look for quality and value in their shopping, and Health and Beauty Care (HBC) purchases will continue to be promotionally driven.
2. Private label and store brand products will expand and outpace national brand growth due to their rising quality, consumer acceptance and value. The Topcare private label brand we carry is consistently in the top 5 HBC categories for the stores that we supply.
3. The current national trend for healthy eating will continue to flourish in 2014. Consumers will be looking for more nutritious foods, and will be more conscious about the ingredients in the foods and products they purchase. The new kitchen houseware items now available make it easier to prepare foods, measure ingredients, store leftovers and maintain hydration.
4. The growth in the Latino and Asian populations will continue, and supermarkets with a diverse ethnic customer base will have to have the products and sales events that are culturally relevant. At Imperial, we continually evaluate the demographics of our retailers, and try to provide the right mix of product to meet the needs of their shoppers.
5. The “click to buy” technology of Peapod, Fresh Direct and new entries like Amazon, Google and other on line retailers will continue to allow on-line purchasing and home delivery. These retailers are meeting the needs of the “time-starved” consumer, and supermarkets will need to find ways in 2014 to make the shopping experience easier and less time consuming.
6. The consolidation in the supermarket industry will continue in 2014, and the smaller independent grocers will find it more challenging to compete, and will look to their suppliers for help in product selection, pricing, promotional planning, and merchandising.
7. The competitive marketplace will continue to evolve with more, and different, store formats all selling grocery and non-food products. The Dollar and “Big Box” stores will continue their growth in 2014 as will the Nutritional/Natural/Organically focused retailers like Whole Foods and Trader Joes, who have a loyal consumer following.
8. And, we can’t overlook the dramatic impact that “social media” will have on the way we communicate with our customers in 2014.

These are some of the major trends we see in the New Year. The economic climate, while improving, will not dramatically change in 2014. If our supermarkets stay focused, adapt to the changing retail market, commit to meeting their consumer’s needs, and are aggressive in promoting quality, value and customer service, then they will thrive and continue to grow in 2014. As a supplier, Imperial will work closely with our retail trading partners to help make this happen

So, as we start the New Year, we wish everyone a very Happy and Healthy 2014, with resolve to keep changing

For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com