I learn every time I go to the store

I learn every time I go to the store

Take advantage of store visits

Last week we shared some insights related to trade shows. You know we would always recommend you get out to some stores when you are in a different market for a trade show. We were fortunate to get into some Toronto area stores prior to CPMA.

Your sales people need to be in stores. When they travel to any trade show, they should make time to get in to stores. Whether they are existing or potential customers or somewhere you will never sell anything, they will learn something.

Every time I spend time in the stores it reminds me how important it is to be out there. We can develop the best plans and programs but they have to work in retail. It is a different, busy, challenging world. We wanted to share some of the learnings from store visits in Toronto.

1.  The retailer owns the retail

We had a chance to spend some time in Eataly. Great stores where food almost becomes art. Not for every shopper, but they do have a clientele who shop there, and they cater to their needs. When I saw these lobsters, it reminded me the retailer controls the retail. It also reminded me that the same product in different environments has different value.

This might be an extreme example, but the people running seafood in Eataly have set this price. They must either believe or perhaps have proof their shoppers will pay the price. No doubt the lobster fisherman, the lobster wholesaler and the seafood distributor in Toronto would shake their head. We must remember, once the retailer buys the product, they can set the retail wherever they want. We also must remember it is their call. Certainly, some of the other people in the value chain would argue for a lower price and sell more volume.

Just this morning I heard that from a food processor, ‘they have us priced too high.’  I hear you but your customer should know their shoppers better than anyone. If you really do believe the price is too high bring some facts or support a temporary price reduction (TPR) to illustrate how volume changes.

It was a bit ironic as I had just left Halifax that morning and I noticed the Clearwater lobster in the airport selling for $34.99/kg. In Atlantic Canada we would think that might be a lot for lobster and people probably do pay a premium for shopping at the airport. In the Eataly environment the $89.99/kg might not seem as ‘out there’ as you think.

2.  Discount can bring opportunity

We had the chance to get into a FreshCo store. Definitely a different shopping experience than the high-end Eataly. Again, different stores for different consumers. We can jump to the conclusion discount drives prices down and the limited assortment makes it difficult for #3 or #4 players in the category to get on the shelf. These are true challenges.

Discount does also bring some opportunities. In produce they sell different sizes or perhaps a slightly less rigid product specification. These English cucumbers might not make it to a Sobeys or Loblaw shelf because of the size and shape. They are acceptable in discount which might be an opportunity for a grower to increase their marketable yield.

Discount might also be an opportunity for a packaged good to sell a smaller size and differentiate from the conventional store offering. Perhaps an 8 pack compared to a 12 pack. This does add complexity but it might also add incremental volume to allow you to lower your fixed costs per unit or buy more ingredients.

3.  Win where you can

4.  Category merchandising works

You have to help consumers make the decision. They are bombarded with messages in the store and sometimes it can become overwhelming. This is called paradox of choice. If a consumer is faced with too many choices often they will pick none. Trade Joe’s philosophy is to reduce the choice and offer a much more limited listing base. They believe it is their job to try the 17 different brands of salad dressings, pick the best one and offer that on the shelf.

In Canada, retailers continue to offer more choice. Perhaps it is the over and above money from vendors that keeps that strategy alive. A discussion for another day.

The fresh berry category in Longo’s had some good signage to help consumers make the right choice. They identify the premium flavour options, the organic options and the everyday branded options. No doubt Driscoll’s paid for the signage but it is a good execution of helping the consumer understand the category. If you plan to make this type of investment save some of your dollars for working with store staff. This is only effective when they put the right product in the right place.

5.  Service level at Whole Foods Market disappointing

When you see a lot of black or white metal shelves you should take a moment to figure out what is going on. We were surprised to see so many holes in the Whole Foods Market store we visited. Perhaps it was just a bad day but if I had products in this store I would go back and see if conditions improved. I am not sure how they get many of these items but there were a lot of gaps. This is not good for suppliers or retailers because consumers will not keep going there if they cannot find what they are looking for.

One interesting note about Whole Foods was they had a lot of local products. We probably found more Ontario products in this store than many of the other stores we visited.

In stock position is so important. Given the number of holes we saw, there is an issue. If you have products in these stores, I would recommend getting in to assess your in-stock position. You might be filling all the orders but there is an issue with store ordering or it is out back and not getting to the shelf.

A new version of Loblaw’s conventional store opened the week before we went to Toronto. Next week I will share some conclusions from the visit to the recently renovated Kingsway store in Etobicoke.

I do have travel coming up to Toronto, Edmonton and Guelph so if you want to connect or have an event in any of these locations give me a call or send me an email.

Peter

SKUFood Recipes for Success Podcast

In this episode of SKUFood Recipes for Success, we sit down with Cathline James, founder of Wise Bites, a purpose driven snack brand redefining what it means to be truly inclusive in food. Built on the belief that everyone deserves access to safe, nutritious options, Wise Bites has carved out a unique space in the better for you category with products that are free from the top 11 allergens while still delivering on taste and function.

What started as a personal mission has grown into a forward thinking brand focused on long term health, accessibility, and innovation. Wise Bites isn’t just reacting to trends, it’s anticipating them, creating products designed for a more inclusive future of food where functionality and flavour go hand in hand. From early product development to scaling into retail and food service, the brand has stayed rooted in its core purpose: allergen free snacks that make you feel good and taste good.

Cathline shares how seeing what others don’t has shaped her approach to building Wise Bites, from identifying gaps in the market to creating products that meet real, underserved needs. This conversation explores what it takes to lead with purpose while building a scalable business, and how Wise Bites is proving that the future of snacking isn’t just better for you, it’s smarter, more inclusive, and built to last.

If you would like to be a guest send us a note. We are always working on the upcoming episodes.

Food and Beverage Atlantic Supply Chain Showcase

The Supply Chain Showcase is a curated, high-impact marketplace designed to connect Atlantic Canadian food and beverage manufacturers with the suppliers, service providers, and experts they need to scale.

This one-day experience brings processors and solution providers together in a structured format built for meaningful conversations and measurable outcomes. For more information check out the details here:

Two perspectives on food service

This is an interesting article because the same person is able to make observations about two different groups of consumers. During the day for more ‘regular’ purchases they are very cost conscious and looking for opportunities to trade down or not spend at all. The evening consumers who are willing and able to spend more are not trying to trade down or stop spending. Perhaps these are the people buying the $89.99 lobster we saw in Eataly.

It is an interesting perspective and reinforces that you need to know who your target market is. This should impact your promotion strategy and consumer marketing. If you people are willing and able to keep spending then (even if you feel it at the grocery store) you need to focus on the positives and continue to give them a reason to buy.

Opportunity with Invest NS

Invest Nova Scotia is recruiting for an Export Development Executive (EDE) position, with a focus on the food and beverage sector. This looks like a great opportunity with Invest Nova Scotia. If you like food and beverage, bringing people together and travel this is very interesting. Good to see the support for the industry.

With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.