The traditional grocery store is changing, with expanding selections and nontraditional retail models.
TACOMA, WA - A feature in the Pacific Northwest's News Tribune cited the changing nature of grocers, first addressing the growth of ethnic groceries: "From tiny hole-in-the-wall single-owner establishments to emporia as big and as polished as any operated by the national corporations, their impact on the grocery business has grown well beyond niche status."
The expansion of that segment is a result of the growth and affluence of immigrant populations, and the mainstream grocers have taken notice. Gone are the days when ethnic food brands meant simply stocking a can or two of La Choy or Chef Boyardee. "[C]ustomers are demanding more exotic products," and retailers have to comply or risk losing sales.
In addition to food selection, the article also addressed changing retail models, citing its local Seafood City store, which is a grocery store situated in a regional shopping mall, as a nontraditional foodservice venture that is resonating with local consumers.
"[W]hat Seafood City has accomplished ?" putting a grocery store in a regional shopping mall anchored by the likes of Nordstrom and Macy??s ?" is something well beyond the traditional model employed by industry giants such as Kroger and Safeway."
While some retailers have blurred the lines between merchandise retailers and grocers (Walmart, Costco, Target), and malls have long had food courts, grocery stores have for the most part been distinct, operating far differently than apparel merchants.
"What customer would want to lug bags of groceries out to a mall parking lot ?" or does any other shopping at the mall if they??re buying frozen or refrigerated items? What mall with any pretensions to being upscale would want the clutter and occasional smells of a fresh-food retailer?" the article asked.
However, gauging by the popularity of Seafood City, the piece said to "expect to see more experiments in combining the two models."
"You can certainly expect to see it from the grocers, who are all trying to figure out how they fit into an increasingly segmented category."
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