CHICAGO - Rotisserie
chicken may have started the trend, and Whole Foods may get credit for raising
prepared foods to a new level, but these days food retailers of every ilk are
finding ways to ramp up their retailer meal solutions (RMS) programs. RMS has
emerged as a critical strategic initiative for not only most supermarket chains
and supercenters but also for convenience stores, dollar stores and drug
stores.
"Gone are the days of
trips to the grocery store designed to address a family??s needs for the next
one to two weeks," said Wade Hanson, Technomic principal and director of the
firm??s retailer meal solutions practice. "Instead, consumers shop more often
and use many different types of stores with an eye toward fresh foods and
ready-to-eat meals."
Shifting consumer dynamics
are one reason RMS continues to grow. For most food retailers, prepared foods
at the store perimeter present a critical way to differentiate their offerings
from the myriad of competitors.
"Since the center of
stores have changed very little in look and function over the years, retailers
must concentrate on the perimeter to set themselves apart with consumers," said
Hanson. Suppliers can play an important role in helping retailers develop
products and deal with related issues like supply chain, waste and consumer
understanding.
supercenters have experienced annual prepared foods growth
exceeding 13% over same time period.
While food margins are
often slim, retailers have seen prepared foods margins strengthen and now view
RMS as a profit center rather than a traffic driver. This development is
fueling changes in store layout, labor utilization, merchandising, preparation
practices and prepared foods menus. As the economy improves and consumers
return to restaurants, retailers will need to continue raising the bar on their
RMS offerings, particularly in terms of value and convenience.