Grab and go and yadda-yadda


Through a special arrangement, presented here for discussion is a summary of a current article from Frozen & Refrigerated Buyer magazine.
I spent a few days walking stores in different parts of the country this past month. I’d just visited about the tenth store in a row with serious out-of-stocks in grab-and-go, meal solutions, meal kits, yadda-yadda or whatever the industry is calling them this morning.
And then, I found myself watching a clerk in a Lidl store grab a bunch of grab-and-go goodies, toss them in a cart and disappear out back. Yup. Grab and go.
There had already only been a fair-to-middling stock on the shelf for a Wednesday mid-afternoon. Now, as the clerk rushed away, the shelves seemed decimated as if by a Blue Light Special at Kmart, circa 1977.
Had there been a recall? Was he coming back with fresher product? Was a shelf re-set underway? Darned if I know. Store associates, I’ve discovered, become uneasy if you ask about things like that versus where to find the frozen organic broccoli.
So, while I don’t know about this particular Lidl store, I did notice enough of a pattern to suggest that it’s very challenging to stay in stock with grab-and-go, meal solutions and yadda-yadda. And while I believe that the meal kit delivery companies — and the lemmings that followed them — will soon be extinct for a variety of good reasons, this battle isn’t entirely over.
If you want to establish a pattern of shoppers buying your yadda-yadda so you can build loyalty, traffic and share, you have to stay in stock. Let’s forget about “right product, right price” for a minute. Having product in stock is an absolute.
You need to put more labor against it and stock the shelf more often or simply devote more space to it. Yeah, how basic can you get?
Some retailers avoid this truth because it’s expensive and, um, “inconvenient” to do anything about it. (Did I just say that? Sorry.) Sure, there’s risk involved. But there’s risk in sitting on the sidelines, too.
Just sayin’.
DISCUSSION QUESTIONS: Do many grocers seem to face out-of-stock problems with prepared foods? In your view, what do grocers still not understand about supporting the needs of such sections and offerings?
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15 Comments on "Grab and go and yadda-yadda"
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Principal, Anne Howe Associates
Retailers that are having success with “grab and go” meals are setting patterns for what days will feature inventory of specific meals. That way, shoppers can anticipate menus and be more certain of fresh meals on a regular schedule. The Fresh Market does this well, and could expand the space they devote to this idea.
Founding Partner, Merchandising Metrics
If I am a retailer managing HIGHLY perishable inventory, I will manage for scarcity. I will gladly sell out and adjust inventory levels up, carefully. I will not feel duty bound to satisfy every full margin sale at the risk of being left with inventory that very quickly goes to zero value.
Principal, Frank Riso Associates, LLC
Many grocers do not even attempt to offer a good variety of prepared foods because it is such a strain to keep product both fresh and well-stocked. Those that do a good job have created a prepared foods department and they not only look after the product full-time but in many cases prepare product on site.
The stores that attempt to offer prepared food as a side-line to the deli or meat or even dairy departments are doomed to failure and that has been what the author has been seeing on his tour of stores. It is truly an all-in or not-at-all decision that needs to happen!
Managing Director, GlobalData
Prepared foods are common in the U.K. and serious out-of-stocks are rare. Sure if you go shop at the end of the day then there is less choice, but there are still options.
Part of the problem with the U.S. market is that, unlike the U.K., the prepared foods category is not as mature nor as stable. This has made it much more difficult to assess demand. It also means there are fewer products in the category so out-of-stocks are more common.
Managing Director, StoreStream Metrics, LLC
It is imperative that retailers integrate technology to proactively monitor AND manage inventory of time-sensitive prepared meal items. I like to idea that Anne noted — retailers creating a scheduled pattern of prepared meals, not unlike daily soup specials at diners. Customers learn that Thursdays will be chili and Fridays might be clam chowder (New England of course!). Using active monitoring and management technology, retailers will learn which items are popular as well as managing inventory to match demand — increasing the value to both customers and the retailers.
Principal, KIZER & BENDER Speaking
I shop Mariano’s frequently and find that their replenishment strategy is very strong. The associates seem extremely vigilant in surveying product movement. I believe those who are responsible for replenishment must be trained to anticipate product movement and then have the authority to take action. As an aside, I once asked one of the associates at Mariano’s how he knew what he would need in the next hour, and his response was: “Trust me, I know! This is my show!” It all comes down to people.
Managing Partner Cambridge Retail Advisors
Grocers have rushed to join the bandwagon of the hot trend of meal kits and many are still working out the finer details. There are a lot of moving parts that need to be perfected to do meal kits well and to price the correctly.
Forecasting demand is one of the big challenges, especially as you introduce new kits. The labor to assemble meal kits is another challenge and to me is the key ingredient here. Retailer have been reducing headcount at stores for years and this trend creates a labor intensive conundrum. How do I maintain margins while increasing labor to service kit demand (as labor costs are skyrocketing via minimum wage legislation)?
Food safety is another challenge. For meal kits that include meats and fresh produce, retailers need to continue to monitor temperatures and freshness to ensure products are safe.
While there are challenges, retailers will figure it out, as it is what many busy consumers want!
Global Retail & CPG Sales Strategist, IBM
The retailers must make an honest commitment to this category. That means short shelf-life codes to help ensure freshness, enough on-shelf to ensure in-stock conditions and production management activities to monitor category performance everyday. All of that takes enormous labor and product resources… more than most want to commit. That’s the issue.
Retail Strategy - UST Global
Two interesting articles today: Burberry disposing of excess, and grab and go that came and went. The idea that for any product or promotion you can stay in-stock until the very last minute and then magically get the inventory position to zero, without some kind of clearance or disposal, defies math. To be controversial, there’s nothing wrong with selling everything that you planned and bought at full price, and bringing in something new to replace it. If a retailer can retrain their customers to shop early and often they have an (alternative) path to success.
CEO, President- American Retail Consultants
Prepared foods need someone who continually manages, monitors and restocks. Usually this requires at least two people and most grocers won’t dedicate this to such a high demand area, with ebbs and flows, as well as difficult to manage inventory, when they have a full store that continually demands attention, customer service, restocking and out-of-stock elimination.
Vice President, Research at IDC
Zero waste is unheard of and, when you’re understocked as suggested, it sounds like a business opportunity. For prepared foods, several folks on this thread already covered the basics — resources, dedicated staff, and consistent assortments. I loved Warren’s comments that the “meal kit delivery companies – and the lemmings that followed them – will soon be extinct … ” Meal kits are an immediate need.
Chairman Emeritus, Relex Solutions
Owner, Tony O's Supermarket and Catering
President, Humetrics
I would suggest turning a negative into a positive. The reason we are out of your favorite item is if it is not fresh, we don’t sell it. Shop early or order online to make sure you get your favorite meal before we run out.
Executive Vice President and Chief Marketing Officer, IRI