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30% of existing store chains will be consolidated by 2025

Updated: Oct 11, 2018

Hello CPG peers!

We tracked down Thom Blischok’s 12 supermarket trends for 2018-2025 from the recent Food Management Institute’s ES+D in Atlanta, in case you missed it.

"1. Further consolidation of the grocery market. About 30% percent of existing store chains will be gone by 2025.
2. The larger chains will get larger, and the smaller outlets will become more personalized in their service. “Today, it’s about designing for the experience: the sushi bar, cheese bar, wine bar or cooking school. Shoppers care about experience first, convenience second and price third,” Blischok said.
3. Discount grocers will continue to have regional impact.
4. We’ll see rapid growth in small format stores.
5. There will be increased impact of take-out foods and “food subscriptions.”
6. A battle will be fought over ‘click & collect’ and home delivery. “This will be a real live battleground,” Blischok said.
7. There will be more experimentation with “on-trend” stores.
8. You will see an explosion of culinary-based “groceraunts,” where more supermarkets will include soup-to-nuts restaurants.
9. There will be rapid growth of Hispanic-purposed stores.
10. Emergence of “Mall Marts.” That deserted Sears store in your neighborhood may become a grocery store in a mall, with other services and “pop-up” grocery outlets nearby.
11. Increase in Premium/Super Premium private labels. Costco, for example, is now in the chicken farming business, and is raising antibiotic-free and cage-free poultry.
12. Robotics, Artificial Intelligence/MR to reduce operating costs. Robotics and AI will have more to do with the operation of stores than we’ve seen to date,” Blischok said."

Larger brands have grown cautious and slowed their innovation engine, he said, while smaller companies are willing to take risks with unique products and potentially flop—something consumers appreciate. This is fueling growth of smaller companies. "The acquisitions are a result of traditional CPG companies needing to sell products that portend consumer trends—and needing to stay relevant."

Do you agree? What are your thoughts on the future direction of the CPG Industry? We would like to find out what you think. Click here and get in touch.

----- Thom Blischok is Chairman and CEO of The Dialogic Group. LLC, a growth and results-driven professional services firm serving both the Retail and CPG industries. His record of achievements include advising major retailers on growth and market re-positioning strategies in the Drug, Apparel, Convenience Store, Grocery, Dollar, e-Commerce, Mass, Specialty, and Club retail sectors with special emphasis on improving merchandising, marketing, supply chain, and technology capabilities.



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