Trends That Will Shape the Landscape in 2015

Commentary From Our Chairman / CEO

Trends That Will Shape the Landscape in 2015

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

Much has changed about grocery shoppers as well as the channel landscape. Shoppers today have more choices than ever and many shop in three or more different channels.

While no one can predict the future, it’s safe to say that consumers want to save money, save time, and live a healthier lifestyle.

Trends we see in the New Year are:

1. Health and wellness will show unprecedented growth. Consumers today want to make healthier choices for themselves and their families. A recent study showed that more than 70% of shoppers read labels, and more than half want to see food products with nutritional value ratings. New kitchen housewares make it easier to prepare foods, measure ingredients, store leftovers, and maintain hydration.
2. Growth in natural organic, non-GMO and eco-friendly products will continue to flourish. Mainstream supermarket formats will add these product lines to meet consumer demand. Today there are thousands of HBW (Health, Beauty and Wellness) product offerings in natural vitamins, cosmetics, and skin and beauty care lotions. Natural GM products are also available in the pet category, as well as PVG-Free and APA-Free products in baby care, storage containers, and kitchen tools.
3. Private label and store brands have grown more than 18% twice the growth of national brands. Expansion will continue in 2015 with increased product quality, and value. We’ve seen Topcare’s private label brands lead in the top five HBW categories.
4. Shopper demographics will continue to change and expand. As the Hispanic and Asian populations grow; studies show Hispanic shoppers buying power reaching 1.5 trillion in 2015. Providing the right food and non-foods products and programs that are culturally relevant is key.
5. On-line shopping reached 1% of grocery sales in 2014. This will continue to be an integral channel for grocery purchases and distribution in 2015. “Time-starved” urban dwellers are the largest on-line shopper segment. More consumers will shop on line with home delivery, or take advantage of the “click and collect” programs available from many retailers. The challenge in 2015 for brick and mortar supermarkets is to find new ways to make the shopping experience easier and less time consuming.
6. Retailer and Wholesaler consolidation will continue in the New Year. However, there will always be strong independent grocers who provide quality, value and good customer service. Working closely with suppliers in product selection, pricing, promotional planning and merchandising has never been more important for independents.
7. “Blurring” of channels and fragmentation of the market will continue in 2015. Drug stores, Big Box stores, Dollar stores and Natural/Organic specialty stores will continue to expand grocery and non-food categories. Even traditional hardware retailers like Lowes and Home Depot are getting into the food business!
8. Supermarkets will continue to embrace technology and social media as a network for offering consumer promotions, cooking tips and in-store events.
9. Shoppers will continue to look for lower prices and higher quality products in 2015. They will shop at stores that know their needs and provide exceptional customer service.
10. Lastly, the economic climate will improve in 2015. Supermarkets will stay focused and adapt to the ever changing retail market and our commitment is to be relevant to the consumer.

So, as we begin the New Year, we wish everyone a joyous, healthy, prosperous and innovative 2015.

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