As demand for healthy foods increase, many communities have created local food co-ops to meet their needs, and larger food chains have begun taking notice.
As co-ops show an increase in profit, larger supermarkets listen and make changes
In 2010, The Park Slope Food Co-op in Brooklyn, New York, was the largest consumer-owned single store by sales. This store brought in $39.4 million in sales, which averages out to $6,500 per square foot annually. As a comparison, that same year, the more popular Trader Joe’s averaged $1,750 in sales per square foot. Trader Joe’s sales are double that of the popular Whole Foods. (1)
The City Market/Onion River Co-op in Burlington, VT makes 4,500 transactions daily. This co-op has 10,000 members, but anyone can shop at the store. In 2014, their sales were over $38 million dollars! (2)
“A coop has to make money, but also has to have the best interest of its owners, who are also its shoppers, at heart,” according to Robynn Shrader, CEO of the National Cooperative Grocer’s Association (NCGA). Maybe it’s time that traditional supermarkets begin to listen and make similar changes. (1)
Target will be minimizing popular brand foods and putting an emphasis on small, organic and natural brands.
Target wants their consumers to know that they are listening. If you are hoping to purchase your Cinnamon Toast Crunch, Cornflakes or other popular branded cereals, you may see less of a variety. Target brought together top suppliers and let them know that their popular brands may not be popular at Target stores in the future. (3)
At this meeting, representatives from Campbell Soup, General Mills, and Kellogg were informed that Target retailer no longer wants to spend money and effort promoting their products, and instead wants to feature healthier products. Target projects that processed foods sold by Kraft and others will move down the grocery totem pole and fresh ingredient gourmet sauces and oils will take their place. (3)
Targets CEO, Brian Cornell, has noticed that consumers prefer fresh and healthy food provided at good prices. Cornell believes that consumer requests will leave some of the more popular brands in the lurch in the future. (3)
“That doesn’t mean that mac and cheese is being eliminated, but clearly assortment is being shaped around what consumers are looking for,” Cornell said in a recent interview. (3)
It is fair to say that this news came as a big blow to suppliers. Over the past decade, these suppliers have spent time expanding their offices near Target’s headquarters in Minneapolis, MN. In return, Target gave them millions of dollars in sales for the past years. (3)
Target remains unapologetic and feels that the food aisles have lacked the distinctive features that bring consumers to their apparel and home goods sections. They desire to offer distinctive options to shoppers who favor small, organic and natural brands. (3)
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