Bay Food Brokerage’s Post

The average C-store shopper visits a convenience store more than three times a week. Interestingly, food service has overtaken cigarettes as the largest category in the store. Learn more about the evolving landscape of convenience stores in the link below: https://lnkd.in/d4-GwZJF

You may have seen these meal combinations offered at many outlets, which include various food items such as a main dish, side, and beverage for a single price. We often opt for these combos instead of purchasing individual items because of the perceived value and convenience they provide. This strategy to attract customers is known as Bundled Pricing. But why does it seem so attractive from both sides? Here are a few interesting aspects: • Value Perception: Customers feel they are getting more for their money, which can drive higher sales volumes. • Simplified Decision Making: Bundles make it easier for customers to choose, reducing decision fatigue. • Increased Sales of Lower-Margin Items: Bundling can help sell items that might not be as popular on their own. • Inventory Management: Bundling helps in managing inventory by promoting the sale of items that need to be moved quickly. It is interesting to study how various retail segments use pricing strategies to influence their customers in their favor.

Electronic shelf labels for supermarkets can make a lot of sense providing flexibility in information provided to consumers. Consumer preferences evolve and the information and transparency wanted shifts over time. Regulations and information that companies need to provide also changes frequently. This provides supermarkets flexibility for the information provided in addition to simplifying price changes. https://lnkd.in/gnsTajAe

Collaborating with your suppliers to enhance the customer experience including delivering better value is important. Ending up in a "blame game" between supermarkets and major multi-national grocery suppliers as to who is really driving food inflation may not drive the best outcomes for all stakeholders,including the shopper. #Supermarkets #Foodinflation #Blamegame #nowinwin

As we dive into the ever-changing world of food retailing, one thing is clear: the modern shopper is seeking value beyond the mere price tag. In fact, the latest edition of The Food Retailing Industry Speaks 2024, now in its 75th year, highlights the various factors that contribute to this shift in consumer behavior. From top-notch quality to convenience, relevance, and overall experience, it's evident that today's food industry is evolving and embracing innovative solutions to cater to these demands. Don't miss out on this valuable resource, download the report now and stay ahead of the game. Download now 👉 https://brnw.ch/21wLzKR #GrocerySpeaks #FoodIndustry

🛒 Elevate your fresh retail game with RELEX Solutions's guide on achieving the perfect balance. Explore how retailers can optimize order accuracy, streamline store operations, and embrace long-term planning for sustained success. Uncover the secrets behind reducing spoilage, improving availability, and ensuring profitability in the ever-evolving grocery landscape. Give the guide a read and stay ahead of the curve! #Retail #SupplyChainManagement #inventorymanagement 

Great point by WMT - food companies should not need to increase prices with inflation at ~3% (although there may be exceptions like cocoa/chocolate). A good cost savings program should be able to offset that 3-4% and keep prices flat for Consumers. #cpg #grocery #pricing #costsavings

Learn how to minimize the impact of disruptions on grocery store shelves and ensure a steady supply of essentials to customers. https://lnkd.in/dM4w8tJE #GroceryStoreManagement #SupplyChainResilience #FoodRetailing

Understand the impact of FSMA 204 on fresh food retailing and supermarkets. Don’t miss our 6/26 webinar with Supermarket Perimeter New Era Partners and Share-ify. https://ow.ly/iAwJ50SijEi

The real issue with price discount promotions is that they drive up costs and prices over the long run, placing an additional financial burden on consumers and making them worse off. Why is this the case? Price promotions require dozens of people to make them work.  Business managers develop a promotional program with a Supermarket buyer. A team of people then meticulously analyse these promotions to determine if they are aligned with the brand strategy, another team create a prediction of volume uplifts on price promotion and yet another team evaluate whether the price promotion makes economic sense. The supermarket then has its team try to slot and map all supplier promotions to create an optimised promotional program. This complex exercise is repeated across hundreds of suppliers, dozens of categories, and two major supermarkets and Metcash independent banners, involving literally thousands of people all analysing and administrating price promotions.  This labour cost alone will run into the hundreds of millions each year. However, the most significant cost is not all these teams planning price promotions. The most significant cost is the administration, ticketing, printing and distribution of the 30 page price promotion catalogue, and bane of all FMCG suppliers - forecasting and inventory management of perishable food items. Thousands of SKUs are over-forecasted yearly, leading to overproduction and subsequent clearance discounting or inventory write-downs. This cost runs into the hundreds of millions, if not billions, each year.  Food wastage due to this hi-lo promotional pricing model is a major cost that consumers ultimately bear resulting in higher shelf prices. The most effective way to reduce grocery shop costs is to eliminate the grand illusion of price promotions from the supermarket altogether. Steady shelf prices will lower the cost of doing business substantially. These savings are passed on to consumers. OEM multinational food manufacturers can reinvest cost savings into their products. Woolworths Supermarkets and Coles Group could benefit Australian society tremendously by working with suppliers to reduce or eliminate Hi-Lo price promotions and focus on consistent and possibly lower shelf pricing without damaging profitability. This program could start with a review of price promotion depth, duration, frequency and mechanics across all major brands. Over the long term, Hi-Lo price promotions are a net negative benefit to the community, but a shift towards consistent pricing could lead to significant societal benefits, including a lower grocery bill. #fmcg #supermarkets #pricingstrategy #consumers