The Illuminist Blog

Groceraunts and the Future of Grocery Shopping

Posted by Jon Thompson on December 01, 2015


Wandering through aisles bustling with shopping carts while passing hundreds of different brands of cookies, crackers and cereals may become a thing of the past. Today’s consumers are no longer looking for a one-stop shop and are underwhelmed by the traditional food shopping experience.

With the rise of farmer’s markets, online grocery shopping, and niche retailers, large grocery chains are taking a hit. According to Technomic’s new report, “Food Industry Transformation: The Next Decade”, traditional food retailers are expected to lose 9% of the market share by 2025. Today’s consumers want to avoid the busy fluorescent lit aisles and opt for a more enjoyable shopping experience. In order for traditional grocers to bring back the 20-30 somethings to their doors, they have to adapt to the way that consumers want their shopping experience. Several large food retailers are already taking on that challenge.

The “groceraunt” has become a buzz word in the food retailing industry. Places like Whole Foods and Lunds & Byerlys already offer cafeteria style food options for a quick on the go lunch, but the groceraunt offers a more robust grocery shopping experience. Full service restaurants, or "groceraunts", have begun popping up in big grocery chains like Hy-Vee where you can now sit down and enjoy a steak before or after picking up your weekly groceries. Target is taking it even one step further by opening up a full service bar at a location in Illinois. Grabbing a glass of wine before hitting the food aisles is now a reality for Chicago locals.

Getting rid of the “grab and get out as fast as possible” mentality by offering an enjoyable experience is a step to attracting millennials and winning back baby boomers. Adding groceraunts and other services such as skilled butchers and fishmongers are vital in pulling grocery stores out of their current slump. Grocers have to offer more than low priced food. Consumers want a holistic retail experience.

The bottom line is: today’s consumers are experience-driven. This extends to all brands, not just grocery retailers. The ways consumers choose brands are changing, whether it is where they will choose to pick up their milk and eggs or what brand of beer they will purchase at the bar. Grocers have to offer more than low priced food. Consumers want a holistic retail experience that starts with authentic and unique brand experience.

Bolster my brand

Topics: Food & Beverage