Ask the Experts | The Shelby Report https://www.theshelbyreport.com/category/ask-the-experts/ Your source for Grocery news and Supermarket insights Fri, 19 May 2023 14:05:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://shelbyreport.nyc3.cdn.digitaloceanspaces.com/wp-content/uploads/2016/12/NEWshelbyMap-2016_500-59x59.png Ask the Experts | The Shelby Report https://www.theshelbyreport.com/category/ask-the-experts/ 32 32 Consumer Safety And Brand Trust: A Must In The Grocery Retail Industry https://www.theshelbyreport.com/2023/05/31/consumer-safety-and-brand-trust-a-must-in-the-grocery-retail-industry/ https://www.theshelbyreport.com/2023/05/31/consumer-safety-and-brand-trust-a-must-in-the-grocery-retail-industry/#respond Thu, 01 Jun 2023 03:59:04 +0000 https://www.theshelbyreport.com/?p=213979 Sponsored content Q&A with Quang Kwok, senior product manager at Invafresh More than ever before, consumers are demanding more information about the products they consume, where they come from and how they’re prepared. Food traceability is especially important in the world of fresh. Invafresh discusses the role fresh food retail technology plays in end-to-end traceability […]

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Q&A with Quang Kwok, senior product manager at Invafresh

More than ever before, consumers are demanding more information about the products they consume, where they come from and how they’re prepared. Food traceability is especially important in the world of fresh. Invafresh discusses the role fresh food retail technology plays in end-to-end traceability and reporting and how technology is shaping the future of the industry.

Quang Kwok

Q: How can technology be used to improve traceability efforts in the grocery industry?

Kwok: Surprisingly, when it comes to food traceability, many in the food system still utilize a largely paper-based system of taking one step forward to identify where the food has gone and one step back to identify the source.

The use of new and evolving digital technologies will play a pivotal role in providing end-to-end traceability from the origin of a contaminated food to its source, in minutes or even seconds, instead of days or weeks.

An easy place to start with is barcodes. New technology has now made GS1 2D barcodes a global standard in 115 countries with over 6 billion transactions every day, bridging the physical and digital worlds to improve user experience and efficiency. With GS1 2D barcodes and solutions in place, grocery retailers can scan backroom products and capture all trace attributes, such as Global Trade Item Numbers, Establishments, vendor, SKU/UPC, batch/lot number, serial number, best before date, expiration date and COO (country of origin). 

The industry has set a date to make the transition to accepting GS1 2D barcodes at point-of-sale (POS) – referred to as Sunrise 2027. At some point, all retailers will need to prepare retail POS systems to process 2D barcodes and continue to have efficient checkout capabilities. At minimum, price lookup systems will need to be able to use the GTIN encoded in 2D barcodes.

Blockchain technology is another promising solution for traceability and compliance. It offers an immutable, decentralized ledger that can record every transaction in the supply chain, creating a transparent and secure system. This can help retailers to identify the source of any safety concerns and prevent the spread of contaminated products quickly.

Blockchain food traceability also plays a significant role in reducing the amount of food waste as it enables food retailers to track contaminated produce, identify hotspots and pinpoint where a product was spoiled in a matter of seconds. This information can help ensure that the product doesn’t end up on shelves and that no more products from an identified hotspot are purchased.   

Q: What are some of the challenges that grocery retailers face when it comes to traceability and compliance, and how can technology help overcome these challenges?

Kwok: One of the major challenges that grocery retailers face regarding traceability and compliance is the complexity of the food supply chain. Modern food supply chains are often global, involving multiple suppliers, manufacturers, distributors and retailers. This complexity makes it difficult to track and trace products effectively and efficiently, especially in the event of a recall or other safety concerns. According to a study by the Food Marketing Institute, 95 percent of food retailers experience difficulties in implementing effective traceability measures.

Another challenge is the need to comply with various regulatory requirements, such as the Food Safety Modernization Act (FSMA) in the U.S., which requires retailers to have traceability systems in place. Compliance with these regulations is essential for avoiding legal penalties and protecting brand reputation. The FDA has seven new major rules to implement FSMA, one of which requires that certain foods have additional traceability records, which only adds more complexity for retailers.

To overcome these challenges, grocery retailers can leverage technology solutions. For instance, advanced traceability software can help retailers to track and trace products across the supply chain more effectively. These systems can provide real-time visibility into the movement of products and help retailers to quickly identify the source of any safety concerns or quality issues. 

Q: What benefits can retailers expect to see from investing in traceability and sustainability technology solutions?

Kwok: Investing in traceability and sustainability technology solutions can bring significant benefits to retailers. One of the biggest benefits that comes to mind is an increase in labor efficiency. For example, automated inventory management systems can track inventory levels in real-time, reducing the need for manual stock checks and enabling employees to spend more time engaging with customers.

The use of workforce management software can also help retailers to optimize scheduling and shift planning, ensuring that the right employees are in the right place at the right time to meet demand. This can help retailers to reduce labor costs while also improving employee satisfaction and retention. 

Operationally, with a good traceability solution in place, grocery retailers should see better compliancy, enhanced recall readiness and improved inventory management. Ultimately, by investing in traceability and sustainability technology solutions, retailers can improve their brand reputation and differentiate themselves from competitors, as consumers are willing to pay a premium for products from brands with a strong social and environmental commitment.

Q: When looking for a traceability solution provider, what are some questions to ask?

Kwok: First, it’s important to gain a solid understanding of the requirements and the information that is required for compliance. Once you know your requirements, then putting together a list of questions to ask would be helpful.

Start by asking if the system can effectively trace the link between source products and sellable packages. For example, is the solution able to trace meat grind information from the primal source? Can every ingredient of a sandwich in the deli be traced back to its original source?

Another question to ask is whether the solution is equipped to notify your store when there is a possible recall? Are food recall reports automated to eliminate time consuming manual process?

Some other questions to ask include:

  • What segments of the food supply chain does your solution support?
  • How does your solution address the requirements in FDA’s Food Traceability Final Rule?
  • What key data elements does your solution have the ability to capture?
  • How do you capture data that adheres to GS1 standards?
  • How do you capture lot code / batch tracking data?
  • How is information shared across data platforms and between supply chain partners?

Q: How does Invafresh empower and help grocery retailers meet traceability and compliance regulations?

Kwok: Invafresh offers grocery retailers a USDA-compliant traceability solution that tracks, traces and monitors fresh food movement from point of origin and transformation to retail with real-time data to increase the quality of their products while meeting regulatory requirements.

The Food Traceability module is the ultimate application to streamline operations, reduce labor costs, recover faster from disruptions and food recalls and reduce the risk of contamination. The intuitive, configurable and user-friendly nature of the platform can be adopted quickly and builds employee confidence and engagement in new technology.

Our platform is mobile-centric, enabling store employees with access to accurate just-in-time information, up-to-the-minute communication and instant alerting while operating on the sales floor. As a result, store operators can spend less time in the back room and more time in the front of store improving the consumer experience.

Additionally, our award-winning customer success team of Freshologists work alongside our grocery customers and operators at all levels to empower store employees through quality training and tools from the point of onboarding to adoption and continuous improvement to ensure strong software compliancy and maximum return on investment.

For more information, visit invafresh.com.

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Why Brands Are Driving Bakery In 2023 https://www.theshelbyreport.com/2023/02/28/why-brands-are-driving-bakery-in-2023/ Wed, 01 Mar 2023 04:59:01 +0000 https://www.theshelbyreport.com/?p=209581 Sponsored content As U.S. shoppers battle inflation, value for money is paramount for retailers competing for custom in a market fiercer than ever before. We sat down with Neil Pittman, director of sales USA for St Pierre Bakery, to talk about why today’s challenges create opportunity for brands able to help retailers balance demand for […]

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As U.S. shoppers battle inflation, value for money is paramount for retailers competing for custom in a market fiercer than ever before. We sat down with Neil Pittman, director of sales USA for St Pierre Bakery, to talk about why today’s challenges create opportunity for brands able to help retailers balance demand for quality and need for a value proposition.

bakery St Pierre
Neil Pittman

Why Brands Are Driving Bakery In 2023

Pittman: Bakery is a staple category for U.S. shoppers. Despite financial challenges and a constantly changing consumer landscape, money will always be spent in the sector and savvy retailers will look to engage shoppers through quality, consistency and in-store experiences that garner loyalty.

That’s where St Pierre comes into its own. For consumers, the trend for premiumisation is here to stay. Previously, shoppers were elevating their meals at home because they couldn’t travel or dine out in the pandemic. Now that the cost of living is on the up, consumers are still looking to treat themselves well at home. This is backed up by the data, too – with “specialty rolls” sales growing 22 percent in the last year and ‘brioche’ as a category growing at 20 percent

Retailers offering a trade up in one area of the grocery store can drive increased sales in other areas – and that’s why getting the offering right in bakery is paramount for retailers. For example, a shopper who opts for a premium brioche burger bun from St Pierre is more likely to pair it with premium meats and cheeses. Our innovative merchandising and standout branding catches the attention of shoppers – and we know that St Pierre shoppers have a higher basket spend as a result of opting for our quality baked goods.  

As a U.K.-based company, we understand the impact of supermarket price-matching and increased cost of living has on the “middle shelf.” As a result, we’ve seen time and again that premium brands win out. Many of the categories where this is true – and especially in bakery – have been renowned for leaning in on private label. This is changing and retailers are recognizing that it is branded offerings that deliver excitement and theatre in the fixture. That in-store theatre is backed up at every consumer touchpoint and as such, the velocity of branded goods is so great that private label simply can’t compete.

bakery St Pierre

Increasingly, retailers are reviewing their private label programs, looking to inject some brand personality in a bid to drive sales, or remove the private label offering all together. In the brioche category, specifically, brands are outpacing private label and have been for some time. Brands are delivering $326 million to retail versus $253 million coming from private label. Clearly, consumers are looking for quality products from brands they believe in and that’s part of the reason the St Pierre brand is growing at 9 percent on last year. 

We invest heavily in marketing support to ensure we continue to build a brand that shoppers engage with. We consistently deliver a quality product and a unique experience that starts in-store with our innovative merchandising and continues at home.

When you couple our approach to brand-building with the fact that our fill-rates average at a market leading 98.5 percent, we become a very attractive proposition for retailers vying for custom in a fiercely competitive market. This becomes even more important during grilling and holiday season when sales peaks mean that retailers really need reliable partners who can deliver on time and in full, to keep shoppers coming to store.

Understanding what ‘value’ means to shoppers is always key – but it is particularly important in the current climate. Bakery is a relatively low value category and with consumers watching what they spend, they are more discerning. It doesn’t mean they’re spending less, they are just more aware of what they perceive as value. This offers opportunity for premium brands – particularly in bakery. The difference between an extra dollar in-store is minimal, but the difference it makes to the quality of a shoppers’ meal is much more significant. 

It is our understanding of the consumer mindset and investment into data and research that keeps us informed and able to stay one step ahead. This year, we are focusing less on new products and more on new pack sizes. We’re working with retailers to offer bigger packs and better value on our core range of brioche burger buns and brioche hot dog rolls. All of our products also offer fantastic shelf-life which means retailers running a program with St Pierre are not risking wastage in the way they might with other brands or private label offerings.

bakery St Pierre

The team is excited to attend shows again this year to share updates on the St Pierre brand and our products. We attended EXPO West again this year and are busy planning for IDDBA in June. We will be sampling all of our products but with a focus on the product ranges delivering most growth – and therefore presenting the biggest opportunity for retailers to drive sales. 

Brand awareness is up. Brand sales are up. As the brand rises, so does our investment in it, with increased marketing spend, additional budget allocated to data and insight to keep us ahead of the competition and continued investment in product quality. Trade shows are a great way for us to demonstrate the value St Pierre adds for retailers and shoppers alike, by delivering a quality experience, every time

St Pierre will be at IDDBA from June 4-6 in Hall E, Booth 1301. For more information, visit stpierretrade.com.

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How Has The Pandemic And Inflation Impacted Snack Sales? https://www.theshelbyreport.com/2023/01/31/how-has-the-pandemic-and-inflation-impacted-snack-sales/ Wed, 01 Feb 2023 04:59:15 +0000 https://www.theshelbyreport.com/?p=207117 Sponsored content Anne-Marie Roerink is a principal at 210 Analytics LLC – providing customized research with a specialty in food retailing for clients such as the National Confectioners Association, Food Marketing Institute, National Grocers Association, North American Meat Institute and many others. Through numerous consumer studies, Roerink has developed a perspective on the ever-changing wants […]

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Anne-Marie Roerink is a principal at 210 Analytics LLC – providing customized research with a specialty in food retailing for clients such as the National Confectioners Association, Food Marketing Institute, National Grocers Association, North American Meat Institute and many others.

Anne-Marie Roerink

Through numerous consumer studies, Roerink has developed a perspective on the ever-changing wants and needs of the grocery shopper in a one-size-fits-no-one world. Additionally, she offers a diverse, in-depth view on food retailing strategies, financials and operations.

Prior to founding 210 Analytics, Roerink was the head of research for the Food Marketing Institute. Roerink designs and authors studies in meat, produce, deli prepared, frozen, SmartFood, bakery, confections and other categories.

The Sweets & Snacks Expo explores how the snacks sector has continued to grow even in the face of macroeconomic headwinds and changing consumer behavior. 

How has inflation impacted the snacks industry?

The year 2022 ended the way it started, with inflation taking the headlines. According to the December IRI primary shopper survey, 93 percent believe groceries cost somewhat or a lot more than last year and 97 percent are somewhat or a lot concerned about it – lower-income households in particular.

Consumers are noticing higher prices for all areas of the store. Whether these are perceptions or reality, consumers will adjust shopping behaviors based on what they believe, which is what makes the market even more unpredictable.

Inflationary concerns have prompted a host of money-saving measures when buying groceries among 82 percent of Americans, such as buying what’s on sale (53 percent), cutting back on non-essentials (45 percent), looking for coupons (35 percent) and switching to store brand items (31 percent). 

One thing, however, remained the same: the strength of the snack category and its ability to deliver growth for the total store. Snack sales, that include salty snacks, cookies, crackers, meat snacks and more, reached nearly $60 billion in 2022, which is an astounding additional $17 billion versus 2017. Though inflationary driven, the increases in prices have not put a dent in unit and pound sales that continue to trend above the pre-pandemic baseline of 2019.

snacks

How has the post pandemic return to office trend impacted store-bought snack sales? 

The December IRI survey also noted a sharp uptick in the estimated share of meals prepared at home. Lunch is one of the areas where consumers are looking to save on restaurant meals. Among people who work away from home, 38 percent packed lunch more often – a big opportunity for store-bought snacks.

snacks

Retailers that are aware of the newest product offerings in the category will undoubtedly catch the eye of any consumer seeking to eschew the ordinary. Luckily, events such as the Sweets & Snacks Expo gather these types of innovative offerings in one place, giving retailers the chance to be the first to discover the next big thing.

Further, the vast majority of the nation’s school-aged children are also back in the classroom, and with its return, classroom treating has resumed for the majority of schools. But, it has returned with a twist as many schools require items to be individually packaged, which may move the dollar from the perimeter bakery into the snack aisle.

How is the snack category being impacted by online sales? 

Another opportunity is the continued growth in online sales. While the number of people buying online has plateaued, about one-third of shoppers routinely buy items online and in-store. This favors the snack category as online baskets continue to see fewer fresh items and have a higher percentage of center store items.

Retail trends for 2023 are expected to favor choices, options and ease of purchase for the consumer, making it increasingly important for retailers to ensure they both on par with their competitors at a minimum, but ideally well-enough informed to be a step ahead. Trade events, including the aforementioned Sweets & Snacks Expo, offers extraordinary insights and forecasting of retail trends. 

2022 in review

The $59.2 billion in total snack sales in IRI’s multi-outlet plus convenience stores universe represents an increase of 11.5 percent over 2021 and 27.6 percent over 2019 — the pre-pandemic baseline. Snacks have been performing very well when contrasted against total food and beverages. 

Four areas within snacks achieved double-digit dollar growth in 2022. The performance by salty snacks, which includes items such as potato chips, pretzels and ready-to-eat popcorn, was particularly impressive given the size of the category. Salty snacks rang up $35.4 billion in 2022, which represents 59.8 percent of total sales across all snack categories. And yet, dollars grew 15.8 percent versus year ago, while volume sales were virtually flat. 

snacks

Total snack unit sales were down 2.2 percent year-on-year, while volume was off by just 1 percent. When volume is down less than units, it typically indicates a shift to larger pack sizes to use and save over time. Life is still more home centric than it was pre-pandemic. Foodservice recovery has been slow and spotty, and consumers are once more pulling back on foodservice spending in light of 40-year high inflation. This favors home-based celebrations whether birthdays, holidays, date nights or movie nights.

With more people opting for in-home entertainment and celebrations, retailers have the opportunity to offer new versions of traditional snacks, for instance ready-to-eat popcorn in varying flavors, that will keep consumers interested and returning to see what other new offerings are available in store. 

While it can be a challenge to keep up with the new product launches or packaging trend, that need not make providing options intimidating. There are industry-focused events that are built around the snack category, including the Sweets & Snack Expo, where a countless number of products are debuted each year. Retailers in attendance are able to see firsthand where the category is going, essentially taking some of the guesswork out of what may be next top-seller. 

Other categories with impressive growth statistics includes fruit snacks and rice cakes. These two areas sold more volume (measured in pounds) year-on-year. Fruit snacks have been making deep inroads into the traditional candy seasons in addition to being a popular lunch box item. The increase in volume sales versus 2019 is astounding at 16.7 percent.

snacks

Salty snacks

Salty snacks were the biggest seller at $35.5 billion, adding $4.8 billion to the 2021 record sales. Within salty snacks, potato chips were the largest seller, adding $1.3 billion in sales versus 2021. Tortilla chips also added more than a billion dollars in 2022.  

snacks

Cookies

Cookies are the number two seller, up 12.3 percent in 2022. Volume was down but recovered to above 2019 levels. 

Crackers

The dollar gains in crackers were inflation-driven, with volume down 2.9 percent. The highest growth within crackers was achieved by graham crackers, up 16.9 percent. The biggest seller, however, were filled crackers, that gained 12 percent over 2022. 

Inflation

The price per unit across all foods and beverages in the IRI-measured multi-outlet stores, including supermarkets, club, mass, supercenter, drug and military, increased 13.5 percent in the fourth quarter of 2022, which was down about a half point from the third quarter. Compared with December 2019, prices across all foods and beverages were up 27.5 percent.

snacks

Much like the rest of the store, inflation played a big role in snacks in 2022. The average price per unit increased as follows:

  • Salty snacks: 15.9 percent;
  • Cookies: 16 percent;
  • Crackers: 16.9 percent;
  • Snack/granola bars: 18.5 percent;
  • Snack nuts/seeds: 4.5 percent;
  • Meat snacks: 10.2 percent;
  • Fruit snacks: 23.8 percent;
  • Popcorn: 16.8 percent; and
  • Rice cakes: 12.5 percent.

Source: IRI, Integrated Fresh, MULO+C, 2022 52 weeks ending Jan. 1, 2023.

For retailers to take advantage of the growing market segment it is important to have exposure to trends and innovative product launches. A can’t miss event like the Sweets & Snacks Expo affords a springboard for companies to look towards the future.

The show, which exclusively focuses on candy and snacks, is the largest of its kind in North America. It offers exceptional educational insights that explore snack, flavor and packaging trends as well as retail and consumer predictions for the coming year and beyond. Of equal importance is the exposure to new companies, products and innovations – many of which make their debut at the expo.

Being able to explore Startup Street and the specialty market areas of the show puts retailers in attendance at an advantage over their competitors. These aspects combined make the Sweets & Snacks Expo an unparalleled, premier experience for any retailer wanting to be attuned to industry trends and looking to push the boundaries of their product offerings.

To read more from our Experts, click here.

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5 Ways To Weather Supply Chain Challenges https://www.theshelbyreport.com/2022/10/27/5-ways-to-weather-supply-chain-challenges/ Thu, 27 Oct 2022 15:43:41 +0000 https://www.theshelbyreport.com/?p=197025 Sponsored Content Consumers are accustomed to getting pretty much whatever they want, whenever they want it. For many, the pandemic was a huge wake-up call, as the nation’s supply chain faced unprecedented challenges. Food inflation continues to be driven by a variety of factors that are impacting grocery as well as other retailers and manufacturers. […]

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Consumers are accustomed to getting pretty much whatever they want, whenever they want it. For many, the pandemic was a huge wake-up call, as the nation’s supply chain faced unprecedented challenges.

Food inflation continues to be driven by a variety of factors that are impacting grocery as well as other retailers and manufacturers. Chief among these factors are the high cost of fuel and the shortage of labor, which has driven up the cost and slowed the flow of goods at every point on the supply chain.

Independent community grocers are working closely with their suppliers to secure supplies of high-demand goods at the best prices they can but, facing increased operating costs themselves and working on historically tight margins, periodic shortages and higher prices have been unavoidable. Our members are engaging their shoppers as they seek the best value for their stretched grocery dollars, from new recipes to product substitution suggestions. 

NGA

Of course, it doesn’t help that wholesale inflation accelerated in September after two straight months of falling prices, according to data released Oct. 12 by the Labor Department. Grocery continues to be among the sectors impacted the most, with grocery prices up nearly 14 percent year over year, according to Numerator’s Price Pulse tracker, with rural and suburban consumers seeing slightly higher inflation than city dwellers.

Even amid supply chain and labor challenges, independents carefully managed inventory while compressing margins in key departments to fuel sales in 2021, according to the 2022 edition of the Independent Grocers Financial Survey, a joint study between NGA and FMS Solutions.

The study documents a complex marketplace in which the only constant continues to be change. Grocery retailing remained in flux on both the supply and demand sides. Inflation and out-of-stocks prompted shoppers to switch between items, sizes, brands and stores.

“Supply chain challenges kept independent retailers on their toes with historically low order fill rates averaging 74.6 percent,” Robert Graybill, president and CEO of FMS Solutions, noted when the survey results were released earlier this year. Labor shortages and a complex regulatory environment compounded the challenges coming out of a period of pandemic-driven record sales. 

Here are some ideas for weathering this perfect storm:

Collaboration with your trading partners. Independent retailers and their suppliers, whether wholesalers or DSD manufacturers, should be in constant communication about stock conditions and shelf demands. Advance planning, always a good practice, is more important than ever to stay on top of possible supply disruptions during times of high demand, like holidays. If the pandemic has taught us anything, it’s to expect the unexpected. As IGA President and CEO John Ross wrote in The Shelby Report in August, “We have to work with suppliers and wholesaler partners to do our part, too. Even with rising costs, the grocery store is still a far better value for fresh heathy meals than restaurants and take out, and we need to help our shoppers see how far their dollars can go in local stores. And all parts of the supply chain have to be looking at ways to reduce costs.”

Nurture your local suppliers. The pandemic also demonstrated that consumers trust independent community grocers as a source of wholesome food products, many procured within close radius of stores. Most independents have historic relationships with local growers and manufacturers; now’s the time to strengthen those bonds.

Invest in technology. Labor is tight – everyone is asking their associates to do more, making it harder to stay on top of supply. Explore options for streamlining your inventory management processes. Free up personnel whose time can be better spent in consumer-facing tasks to demonstrate you’re upholding expectations for service.

Boost your communication. Your shoppers are looking to you for answers about why food is more expensive and why certain products might be out of stock more frequently. Be honest and be transparent. Explain things in simple terms. Seek out the best deals you can find. Offer alternatives. Keep folks in the loop about what’s out of stock, why, and when it’s due back on the shelves. Leverage social media and the trust you’ve established in your community.

Network with other grocers. Independent retailers are some of the most innovative and resilient operators in the grocery industry. They’re also willing to share ideas and best practices with grocers in other markets around the country. Perhaps one of the best ways to engage other retailers is by attending The NGA Show, where networking opportunities abound, not only with merchants but with suppliers and service providers also contending with supply chain constraints. That, along with robust educational content, makes The NGA Show a must-attend event for the future of your business. Learn more here about attending the next show, taking place Feb. 26-28 at the Caesars Forum Convention Center in Las Vegas.

NGA

And if you’re not already an NGA member, consider joining to take full advantage of opportunities beyond the show, like committees and share groups in which the learning continues year-round.

At NGA, we’re continuing to keep our members updated on situations as they are related to supply chain and inflation, mostly by way of education and informational learnings, such as our webinars and other member communications.

We’re definitely listening closely to our members to make sure we’re offering the guidance they want and delivering not only insights on how the market is unfolding but how they can help the shoppers in their communities maximize their value. We’re seeing a growing number of our members being creative in securing deals for their customers and engaging them on social media about it.

It’s hard to say when things will return to “normal.” In the meantime, keep doing what independent grocers do best – feed your communities, come what may.

To learn more about Greg Ferrara on our Experts page, click here.

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Ask the Experts at NGA https://www.theshelbyreport.com/2022/10/27/ask-the-experts-at-nga/ Thu, 27 Oct 2022 15:33:59 +0000 https://www.theshelbyreport.com/?p=197127 Greg Ferrara, president and CEO, National Grocers Association Based in Washington, D.C., NGA is the national trade association that is the voice of the retail and wholesale companies that comprise the independent sector of the supermarket industry, as well as those companies that provide products and services to the industry. In his role as president […]

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Greg Ferrara, president and CEO, National Grocers Association

Based in Washington, D.C., NGA is the national trade association that is the voice of the retail and wholesale companies that comprise the independent sector of the supermarket industry, as well as those companies that provide products and services to the industry. In his role as president and CEO, Ferrara is responsible for working closely with NGA’s board of directors to develop and implement a strategic vision that advances the association’s efforts and public policy positions in support of the independent supermarket industry.

Prior to being appointed president and CEO, Ferrara served as NGA’s EVP and chief lobbyist, responsible for representing the association and its members before members of Congress, federal agencies and the executive branch on a wide variety of issues while also overseeing NGA’s political and grassroots affairs, including the NGA Grocers PAC. In addition, he had responsibility for NGA’s communications, marketing and membership departments. Ferrara was also responsible for working closely with and maintaining an excellent relationship between NGA and its national and state trade association partners.

Having joined NGA in November 2005, Ferrara brings a wealth of experience in the grocery industry, having managed his family’s century-old supermarket in New Orleans before the store was ultimately destroyed by Hurricane Katrina. Greg holds a BA in political science from Loyola University New Orleans and is a fellow of the prestigious Institute of Politics at Loyola University. He is a graduate of the U.S. Chamber of Commerce Institute for Organization Management and is a graduate of the NGA Executive Leadership Program at Cornell University. He is an Eagle Scout and an avid outdoorsman who enjoys camping and cooking. He and his wife Nicole are the parents of two children, Matthew and Katelyn.

Read NGA’s expertise on “5 Ways To Weather Supply Chain Challenges” here.

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Are You Meeting Shopper Demands In The Current Climate? https://www.theshelbyreport.com/2022/09/21/are-you-meeting-shopper-demands-in-the-current-climate/ Wed, 21 Sep 2022 13:36:23 +0000 https://www.theshelbyreport.com/?p=194213 Sponsored Content At an interesting time for American retailers, with consumer confidence low and inflation on the rise, we spoke with David Wagstaff, VP North America, St Pierre Bakery, about why the challenges of the current climate present an opportunity for retailers to engage shoppers through quality, consistency, and instore experiences.  Whilst the U.S. is, […]

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At an interesting time for American retailers, with consumer confidence low and inflation on the rise, we spoke with David Wagstaff, VP North America, St Pierre Bakery, about why the challenges of the current climate present an opportunity for retailers to engage shoppers through quality, consistency, and instore experiences. 

David Wagstaff

Whilst the U.S. is, at time of writing, not in a recession; with one predicted before the end of Q1 2023, how can retailers address shopper concerns?

Now is a great time for retailers to lean in to premium brands – with the understanding of what ‘premium’ means for shoppers – beyond price point. For consumers, the trend for premiumisation is here to stay. Previously, shoppers were elevating their meals at home because they couldn’t travel or dine out in the pandemic. Now that the cost of living is on the up, consumers are still looking to treat themselves well at home.

Preparing and consuming better-quality foods along with entertaining guests at home is once again becoming more convenient and cost effective than dining out. Elevated meals and quality products that save shoppers time and provide an easy solution for quality entertaining at home are doing well throughout the store.

Retailers offering a trade up in one area of the grocery store can drive increased sales in other areas. For example, a shopper who opts for a premium brioche burger bun from St Pierre is more likely to pair it with premium meats and cheeses. Our innovative merchandising and standout branding catches the attention of shoppers – and we know that St Pierre shoppers have a higher basket spend as a result of opting for our quality baked goods.  

As a U.K. based company, we know what the impact of supermarket price-matching and increased cost of living has on the ‘middle shelf’. As a result, we’ve seen time and again that premium brands win out. Many of the categories where this is true – and especially in bakery – have been renowned for leaning in on private label. This is changing; European retailers combat that ‘squeeze’ of the middle ground by opting for branded offerings that deliver excitement and theatre in the fixture. St Pierre is well-placed to help U.S. retailers do just this and we are seeing this trend developing – reinvigorating the in-store bakery and in some cases the main bread aisle, by delivering a quality shopping experience that starts in-store and continues at home.

Which grocery sectors, in particular, hold the most opportunity in the current climate? 

It’s absolutely vital that retailers offer an experience throughout the store, but there is much more opportunity to do that in the perimeter and particularly, in the in-store bakery.

We work in partnership with retailers, offering them innovative merchandising solutions and bespoke marketing support which means we are driving footfall to the ISB and increasing basket spend. That is key for retailers as we continue to move forward in the wake of the pandemic and on the brink of recession.

Retailers need to cater to the experience of their shoppers – rather than just the function of their stores. For shoppers, it’s emotional more than practical and that’s why it carries such great opportunities for retailers to drive impulse purchase, away from the grocery aisle. 

Notable feedback from shoppers, is that generally, they shop in both the deli and the grocery aisle – so the two areas obviously deliver something different. The grocery deli is where shoppers go for premium, quality products and often head to the in-store bakery area because it delivers that experience of fresh made bread and baked goods. It’s that setting that has secured St Pierre on-shelf standout and a point of difference. But it’s also about the inspiration which is particularly important to consider when more shoppers are upgrading everyday meals at home. Retailers who can deliver inspiration for breakfast, lunch and dinner will thrive – and St Pierre can help them do that.

We are a branded, quality product sitting in the instore bakery, offering new ways for consumers to experience great baked goods. From our Eiffel tower stands that communicate our heritage to our inclusion in rustic bakery baskets – we help deliver an unrivalled in-store experience in a way that private label goods simply cannot.

By highlighting authenticity, cross-selling with the breakfast, brunch and snacking occasion products and clever merchandising, we are able to provide the tools for retailers to maximize sales and basket-spend.

Our branding, with the flash of orange and where we sit in-store, has always been a point of difference for us. St Pierre is the ‘original’ and is truly America’s favorite brioche. Our packaging is designed to highlight our authenticity as a quality French product and our packaging currently does that, with nods to Paris.

A key part for us is in communicating as a ‘lifestyle’. We like to say St Pierre is a ‘taste of Paris’ with every bite and St Pierre is more than just food on your plate – it’s the experience it brings. That is at the heart of our product development and is part of the reason we are launching a new bake at home range and a first-to-market Brioche Pretzel Roll in 2023.

How can retailers communicate value and quality to shoppers, especially when they’re feeling the impact of increased costs of living? 

What happens when consumers ‘feel the pinch’ is not that they spend less money necessarily, but that they become more discerning with where and how they spend that money. That means that brands and suppliers offering quality goods have an opportunity.

The financial difference for consumers between buying ‘good’ or ‘best’ is marginal – therefore, shoppers are more likely to opt for the better quality or premium offering. It’s different if you’re talking about cars or high-value purchases, but everyday grocery brands are subject to a different purchase journey and knowledgeable brands – and retailers – should be ready to highlight quality goods to shoppers. 

This also creates an opportunity for St Pierre specifically; because we win out in independent taste tests on taste, texture and flavor, we understand that driving trial is key. Whilst inflation might create a more risk averse consumer, perceived quality is so important.

Inflation is being felt across the board, in every sector. So there’ll be two camps of shoppers, those who spend a little extra knowing they’re getting a better quality product and become brand loyal; and those who don’t spend the extra, but then don’t have an experience that keeps them coming back.

We are working with retailers to help protect basket spend in a climate where perceived value is so important to shoppers. We are rewarding loyal shoppers with consistent quality while supporting our customers by reviewing pack sizes that help to maximize sales. We offer four and six count options on our best-selling Brioche Burger Buns which offers appeal to different sized households but also answers the question around value through a “bigger pack better value” approach in difficult times.

For more information, visit stpierretrade.com.

Wagstaff is passionate about the food industry; he has worked across a number of high-profile F&B sectors for more than 25 years, in many international markets including the U.S., China and Europe, creating value and building brands. 

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Can Retailers, Suppliers Defend Against The Supply Chain Catastrophe? https://www.theshelbyreport.com/2022/07/18/can-retailers-suppliers-defend-against-the-supply-chain-catastrophe/ Mon, 18 Jul 2022 20:56:17 +0000 https://www.theshelbyreport.com/?p=189964 Sponsored Content Advantage Group USA provides enlightening answers to questions regarding how the supply chain crisis should be approached. The supply chain issue in the U.S. is still wreaking havoc on suppliers, retailers and ultimately, consumers. The complex, interconnected web of systems has always been fragile, making its demise under recent events inevitable and predictable. […]

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Sponsored Content

Advantage Group USA provides enlightening answers to questions regarding how the supply chain crisis should be approached.

The supply chain issue in the U.S. is still wreaking havoc on suppliers, retailers and ultimately, consumers. The complex, interconnected web of systems has always been fragile, making its demise under recent events inevitable and predictable. The last few years brought us pandemic-driven worker shortages, inflation, rising transportation costs, massive changes in consumer demands and many more factors outside the control of suppliers and retailers.

How do you defend against the indefensible? On the surface, it may be easy to see why suppliers and retailers can’t mitigate issues that are really out of their control. However, there is one thing that both can control — the way they combat supply chain issues.

Richard Cunningham

Rich Cunningham, Advantage Group USA SVP, managing director, has more than 30 years of experience in CPG, having held leadership roles at Coca-Cola, UTZ Quality Foods and Wise Foods. Throughout his seasoned career, he has been instrumental in revitalizing brands by building relationships and trust with retailers to increase customer retention and brand relevance.

Cunningham also spearheaded developing, communicating and implementing effective sales growth strategies and category management for food and beverages to align with retailer goals. In this article, he discusses his thoughts on the state of the FMCG industry and the role retailers and suppliers should play to mitigate many of the problems affecting it today.

What’s the industry’s current state, and how is the supply chain crisis affecting it?

A few things are affecting the industry as a whole right now. We’re still dealing with supply chain issues and grappling with the effects of the record-breaking inflation. These issues are out of the industry’s control. Still, the one thing in their control to mitigate its impact and defend organizations is increased communication and collaboration with business partners.

Labor shortages also affect any business that involves a lot of in-person interaction, increasing the tactical workload. It’s exacerbating the issues that the supply chain is already experiencing, so that’s a major strain on B2B relationships in the FMCG industry. One of the major challenges is that the labor shortage has increased the “tactical” workload, and retailers have deprioritized strategic conversations and planning simply because they don’t have time. This is putting a strain on partnership overall.

Lastly, the spike in inflation affects everything – from the cost of labor to transport and materials. The tension between suppliers and retailers is building because they must determine who is shouldering the cost of price increases. From the supplier standpoint, many are seeing retailers be inflexible and expecting the supplier to take the bulk of the hit on this one.

Inflation also worsened the effects of the labor shortage, which further strained the supply chain. The interconnectedness of the global supply chain, not just the American supply chain, makes it such that if one thing is affected, everything is. The supply chain crisis is really hitting the industry hard and we’ll be hearing about this for some time. The impact of inflation is further hindering relationships as retailers have escalated their focus on the consumer and value.

How should these issues be addressed?

You must think of the consumer today. What do they want? How did their behavior change during the pandemic? Did this behavior remain? Retailers must think of convenience which has taken on additional meaning. After all, consumers still like the in-store discovery and browsing experience and prefer brick and mortar when needing something quickly. Retailers need to look to online and offline tactics to incorporate convenience into their models, while suppliers should prioritize agility so that they are equipped to respond to retailer demand.

Overall, to defend against these issues, organizations must build a relationship that creates a foundation for short, medium and long-term success. This requires a core commitment to listening and responding with empathy. It needs a more in-depth, unbiased understanding of your partner’s goals so that you can work toward your company’s objectives while seeing how helping your partner achieve their goals is a benefit to you. This is why Advantage Group International exists.

Tell us a bit more about Advantage Group International.

We provide the gift of feedback and, through insight, drive positive behavior change and business growth. In the world of fast-moving consumer goods, we act as an integral link between suppliers and retailers. Advantage Group uses data, feedback and strategy consulting to illuminate opportunities for mutual growth, strengthen relationships and provide invaluable insight. In more than 40 countries, Advantage creates better insight, better business and better lives.

As I said before, the supply chain crisis is a product of many things. We don’t have an antidote, nor do we claim to. But Advantage has tools that can certainly help people and organizations weather the undeniable impact of the supply chain crisis on companies around the world. By listening to your partners, we help you see inside their minds and become more understanding of their thoughts, motivations and action. Behind these organizations are people who have opinions and emotions.

Businesses cannot control many factors that affect them – almost no one can. But they can maintain their relationships with people and organizations.

What strategies can be employed to illuminate issues and recommend solutions?

At Advantage Group International, we offer two engagement programs to help you determine your issue, acquire insights and develop an action plan.

Advantage Report gives clients a benchmarked view of performance as rated by their business partners, providing them with valuable data regarding their business relationships’ strengths, weaknesses and opportunities. The program has grown to service over 40 markets across the globe because of our proven track record of suppliers and retailers using it to drive more meaningful business-to-business relationships. Advantage Report helps people and organizations work better together.

We are dedicated to continuous improvement, as such, Advantage Report is built to match the changing needs of our clients. As an example, clients of Advantage Report can now recalculate their results according to the insights they’re seeking to unveil. Sometimes, organizations have unique needs and require a different program from Advantage Report. This is where Advantage Custom Solutions comes in.

Advantage Custom Solutions offers tailor-made engagement programs to solve unique problems, navigate complexities and strengthen partnerships. It’s effective for businesses with specific feedback goals in mind who think they’ll benefit from a completely customized approach.

How do you maximize your results with Advantage Group International?

Advantage Group International works with you to strategize, support, refocus and realign. To maximize your results, you must take an active role and be an equal partner. Here are our recommendations:

Communicate internally with your team – You must ensure that all the key stakeholders within your business know and understand your Advantage Report results.

Develop a strategy – This should lead to building documents and systems that frame strategic communication practices, highlight how new workflow models will be introduced, and define what success looks like.

Align with your partner – Using your strategy as a framework, you should present your action plan to your partner to build trust and confidence and align on what you both must do for mutual success and growth.

Focus on your goals and evolve – This creates organizational and partnership alignment, ensuring that you are being guided by what you learned from the Advantage Report.

It’s also our responsibility to accommodate the changing business landscape and help retailers and suppliers respond effectively. To ensure that we’re giving our clients feedback, data and insights that reflect the world around them and their current concerns, we have updated and refined our critical competency set to help people and organizations more strategically navigate their relationships.

To learn more about how Advantage can support suppliers and retailers on their journey to defend against the supply chain catastrophe and more, contact us here.

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How Can Technology Help Independent Grocers In A Global Pandemic? https://www.theshelbyreport.com/2022/05/23/how-can-technology-help-independent-grocers-in-a-global-pandemic/ Mon, 23 May 2022 20:30:42 +0000 https://www.theshelbyreport.com/?p=187195 Q&A with Francois Labelle, director of product at LOC Software  Francois Labelle has been in the Point of Sale Industry for more than 25 years, starting in the reseller space and moving through to his position as director of product at LOC Software for the last eight years. Francois leads the LOC’s product roadmap. What […]

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Q&A with Francois Labelle, director of product at LOC Software 

LOC
Francois Labelle

Francois Labelle has been in the Point of Sale Industry for more than 25 years, starting in the reseller space and moving through to his position as director of product at LOC Software for the last eight years. Francois leads the LOC’s product roadmap.

What is the current state of Point of Sale Software in the retail grocery space?

We have seen a tremendous uptick in technology solutions in the industry. As a result, independent grocery retailers are hungry for more ways to interact and attract consumers with rewards and marketing tools. Our fully connected platform is an easy transition and a win-win relationship between retailers and their customers.

 

How has COVID-19 impacted technology for independent grocery?

The grocery market definitely had its ups and downs through this continuing pandemic. In the beginning, e-commerce was the first item to take off two years ago. Every retailer has been looking for ways to ensure a safe but enjoyable shopping experience. Although making an impact even before COVID, self-checkouts are being installed in almost every store, even if the retailer has few traditional lanes. A few of the many modules that continue to grow are Electronic Shelf Labels and Self Service Kiosk offers; this is a direct impact of the labor shortages. 

When we talk about supply shortages, anyone on the fence about perpetual inventory should be looking at implementing this process. Inventory makes so much sense for any grocer by handling shrink correctly to letting your retail customers know what is in stock when shopping online. With LOC Software, we offer an entire buying and purchase order within one software, taking away much of the headache from manual processes.

LOC

Where are the technology trends heading for the future in independent grocery?

In today’s ever-changing market, we see grocers focus on Loyalty Programs, such as points and club promotions. Additionally, grocers are looking to move to a single platform solution. Gift cards, for example, can be a quick cost saving to the retail market if you can have an in-house gift card solution rather than sourcing a 3rd party. To complement this, accurate real-time data will be at the helm of any program; having vital information on individual customers at your fingertips is priceless. 

Another huge trend is contactless payments; mobile payments are at the forefront. LOC Software is proud to announce that we have partnered with Blackhawk Network to offer customers touch-free mobile payment options at the checkout, including PayPal and Venmo. 

 

What technology product innovations do you see coming up? 

Anything to make the checkout process easier. We see scan and go really at the forefront of innovations. Customers today need the ability to do everything on their phone, from managing their customer loyalty or point accounts to payments. It is our job to make this a seamless process.

 

How does reporting data play a part in the Product Innovations mentioned above? 

This is a great question, and data is everything. With LOC, transactions flow seamlessly from every part of the system to provide you with the toolbox that you need to use the information for you and your market. Since our system is one single database, any transaction that takes place from the traditional point of sale, e-commerce, Kiosk, or DSD receiving is available in real time. 

 

What are the consumer trends that are impacting the grocery market? 

We are making the in-store and e-commerce experience enjoyable for the retail customer. When customers come back to a brick-and-mortar store, they look for the true shopping experience, including  a straightforward Point of Sale system, whether Kiosk options when ordering a sandwich or mobile payments. At LOC Software, we ensure that our focus is customer satisfaction and making that end-user experience enjoyable. 

 

How does the current economy affect the independent grocer? 

Grocers need to watch their bottom line for their business and the consumer’s pocketbook more than ever. Costs are changing daily, and the general cost of living increases are causing consumers to justify what they are buying and how to ensure that they are paying the best price. Retailers can reach their customers using targeted offers, helping consumers purchase based on their needs and saving money at the same time. This makes it more important to have a fully encompassed system that allows this communication to happen from a central location where their sales and data are housed. 

LOC

How can retail grocers take advantage of current trends to sell more product?

Know your plan and drive it. Train your staff to make them cheerleaders of your technology or loyalty program. We know today that staffing issues are impactful; however, using technology in areas to simplify the process will allow grocers to get their staff to be able to focus on the customers. Secondly, get close to your market, diving into who is visiting your store and their behavior. 

 

What makes your company uniquely different from other brands in the point of sale industry?

Integration often means losing functionality. Very few solutions offer what LOC Software does; The Complete Point of Sale Experience. At LOC, we provide a full back office suite to operate the whole store, innovative host capability, and an eCommerce platform from our native ecosystem that can be installed on-premise or in the cloud. 

 

For more information, visit locsoftware.com.

To read more from our Experts on The Shelby Report, click here.

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Fresh Intelligent Forecasting: The Superpower Against Labor Shortages https://www.theshelbyreport.com/2022/04/25/fresh-intelligent-forecasting-the-superpower-against-labor-shortages/ Mon, 25 Apr 2022 04:30:34 +0000 https://www.theshelbyreport.com/?p=185040 Q&A with Russ Newall, VP of customer success at Invafresh Can automation and digitization of fresh operations help retain frontline workers, maximize scarce labor hours and minimize labor expenses, errors and disruptions? Invafresh discusses the role fresh food retail technology plays in achieving this goal.  “The result of Invafresh’s solution saves us hundreds of hours […]

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Q&A with Russ Newall, VP of customer success at Invafresh

Can automation and digitization of fresh operations help retain frontline workers, maximize scarce labor hours and minimize labor expenses, errors and disruptions? Invafresh discusses the role fresh food retail technology plays in achieving this goal.

 “The result of Invafresh’s solution saves us hundreds of hours in labour per year. What used to take us days is now completed in hours! The Invafresh team went above and beyond to make this project a success.” 

~ Artie Kroese, director of store operations, Roche Bros. Supermarkets.

How has the pandemic increased the difficulty of retaining labor in grocery?

The “great resignation” brought on by the pandemic has created new hurdles for the industry with some 649,000 retail workers putting in their notice in 2021, marking it as one of the industry’s largest exoduses. Today’s transient workforce, employee churn paired with inflation and ongoing supply chain issues, adds layers of frustration as grocers struggle to manage an already lean labor force and meet fluctuating demand.

The industry has lost more skilled workers and full-time staff than ever before with 56 percent of grocery workers citing burnout for handing in their notices. Employees seek more than wage increases. They desire meaningful work that serves a greater purpose and the right tools to help them accomplish day-to-day tasks in an efficient manner.

Fortunately, advances in fresh-centric technologies such as intelligent demand forecasting and automated fresh ordering is reimagining the future of grocery work and providing much needed relief to grocers unable to fill shifts to handle essential functions. While time and labor issues are the enemies for fresh, fresh intelligent forecasting is the superhero that combats shrink and optimizes labor. 

We’re seeing humans and AI joining forces in many industries to accomplish great things. How does Invafresh’s artificial intelligence powered Fresh Retail Platform empower employees and shift the nature of grocery retail work?

Many grocers still rely on manual methods to forecast and order leading to repetitive tasks, error prone processes, frustrated employees, and poor results. Not to mention disgruntled customers. Relieving store employees from these tasks allows them to focus on more impactful work, such as creating memorable consumer experiences that keep shoppers coming back.

Fundamentally, the Invafresh Fresh Retail Platform combines augmented human intelligence with the efficiency and power of AI and Machine Learning, evolving the roles of the in-store fresh labor force.

One centralized platform helps grocers process and manage demand forecasting for all processes across fresh food retail demand forecasting, merchandising, replenishment, and compliancy and sustainability. Our fully modular platform is designed to process and analyze the grocer’s data of their fresh business and operationalize to forecast constant shifts in demand to optimize and match with supply and availability to improve labor efficiency by 3 percent, reduce food waste by 30 percent, and improve sales by 5 percent. 

labor

Take this example of an ordering process in a meat department:

Invafresh

Automated fresh ordering facilitates “Just-in-time truck-to-shelf” meaning there’s only one touchpoint for the operator, which significantly reduces time to work backstock. Grocers can realize labor savings of over 90 minutes per department or order cycle in addition to the incremental benefits of lower shrink, improved sales due to assortment, availability and lower backroom inventory improving working capital.

Think about what this reduction in labor time can do for the quality of work for your employees and cost savings for your operations!

What role does automated fresh ordering play in reducing labor hours and maximizing performance?

Creating the perfect order is critical for grocers to avoid stockouts and reduce shrink. Over ordering leads to food waste and erodes margins, while under ordering leads to empty shelves and erodes customer loyalty. Invafresh’s Fresh Ordering functionality integrates with real-time fresh backroom inventory quantities to deliver grocers the industry’s most accurate replenishment recommendations.

Grocers can eliminate stressful and error-prone guess work and reduce labor hours required for ordering with autonomous order processing that manages the orders independently of in-store operator approval. Workers can spend less time ordering and more time on the store floor.

Managing ingredients for in-store recipes is costly in labor hours. Our built-in Recipe Management functionality generates consolidated replenishment requirements for ingredients used on one or many recipes for fresh food retail items produced in-store. This means fewer trips to the backroom to retrieve ingredients, eliminating tiring repetitive tasks and saving labor hours.

As a growing number of workers retire, they take their decades of experience with them, making it harder to maintain production levels. How does Invafresh address the skills gap?

If you look at any grocery store, you are going to find employees of varying skill sets. Finding experienced managers is an ongoing struggle in the industry. We recognize that making smart decisions in inventory, ordering and production or replenishment requires experience and process sophistication that even the most qualified operators find challenging. Our platform opens opportunities to leverage a less experienced and transient workforce.

The Invafresh FRP levels the playing field so that all tasks and processes in fresh are simplified and standardized. Whether a worker has five years of experience or five months, they will be able to easily run reports, put in orders, execute production plans as the platform automates these tasks to eliminate guesswork.

The foundation for our solutions strategy is that teaching someone to count inventory is easier than teaching someone to create quality orders. We help amplify the impact of your current labor force without adding headcount and provide the opportunity to create more meaningful work for employees, such as servicing customers.

The pandemic and the great resignation have also created significant gaps in shifts and increased missed shifts. Without fresh-centric automation, this would mean missed orders and lost sales for grocers.

Our platform is highly configurable and store managers can optimize labor scheduling by running a labor requirements report. The platform can be configured to align to when labor is available (for example, part time worker hours, morning, afternoon, evening shifts) by department and accommodates non-standard shifts and hours to ensure maximum value in limited resource hours.

How does Invafresh empower and help grocery leaders retain employees?

The intuitive, configurable, and user-friendly nature of the platform can be adopted quickly and builds employee confidence and engagement in new technology. Our platform is mobile-centric, enabling store employees with access to accurate just-in-time information, up-to-the-minute communication, and instant alerting while operating on the sales floor. No need to be tied to a backroom computer. Store operators can spend less time in the back and spend more time in the front improving the consumer experience.

labor

Additionally, our award-winning customer success team of Freshologists work alongside our grocery customers and operators of all levels to empower store employees through quality training and tools from the point of onboarding to adoption and continuous improvement to ensure strong software adoption and maximum return on investment.

We build a solid foundation right from the start. By dedicating a Customer Success Freshologist to each account, we ensure a successful implementation and smooth enterprise-wide roll-out and provide aggregated reference data to help you benchmark performance. Our CS team continuously monitor key performance metrics and meet with customers monthly to further drive value and unlock hidden opportunities.

The time is now to be Best in Fresh! Learn more at invafresh.com/freshology.

To learn more about Russ Newall on our Experts page, click here.

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Navigating Supply Chain Issues, Maintaining Growth In A Volatile Market https://www.theshelbyreport.com/2022/03/29/navigating-supply-chain-issues-maintaining-growth-in-a-volatile-market/ Tue, 29 Mar 2022 19:03:23 +0000 https://www.theshelbyreport.com/?p=183286   Q&A with David Wagstaff, V.P. North America, St. Pierre Bakery  Supply chain issues are front of mind for retailers – how have you helped them keep shelves stocked through the pandemic?  The supply chain is problematic for everyone in the industry – but we’re not afraid to do things differently in order to help […]

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Q&A with David Wagstaff, V.P. North America, St. Pierre Bakery 

Supply chain issues are front of mind for retailers – how have you helped them keep shelves stocked through the pandemic? 

The supply chain is problematic for everyone in the industry – but we’re not afraid to do things differently in order to help retailers. As such, our fill rates are incredible. We have not dropped below 94 percent in more than three years, and we ended 2021 with an average fill rate of 98 percent, despite a volatile market and the industry-wide impact of a disrupted supply chain. 

We are opening a new warehouse in Michigan with our partners, Lipari Foods, which will allow us to double our capacity and storage in the U.S. That is a key pillar of our growth plans. It’s a huge investment – more than $10mn dollars – but we believe the size of the opportunity justifies the investment because it allows us to maintain our fill rates at the level our customers have become accustomed to. 

We also ship the product frozen and we have an extended shelf-life on a premium product. There are few bakery suppliers who can offer that reliability.

We are investing to protect our supply chain so we can help retailers protect theirs. For retailers, that’s unique and one of the key advantages of partnering with St. Pierre. 

What are you doing to ‘future proof’ the supply chain in such a volatile market? 

Navigating supply chain issues is a constant requirement. Whilst our investment will enable us to double our capacity and storage in the U.S. ready for the summer season, we’re working towards an in-country stock holding increase from 20 weeks to 34, but we also have to ensure that the team is in place to sustain the momentum. 

The brand is part of St. Pierre Groupe and the business employs more than 80 people globally with 25 colleagues solely dedicated to building St. Pierre in the American market – including the 10 team members based in the United States. Our customers are benefitting from having an expert team available, on the ground, to meet their supply needs. Part of ‘future-proofing’ is in building relationships with our customers – we deliver on what we promise. 

The other key element in all of this is ‘sticking to what we’re good at’. We work in partnership with Lipari Foods and our joint strategy is ‘right product, right place, right time’. Lipari are experts in logistics which means we can focus on delivering the right products – that answer shopper needs – and ensuring they are ready at the right time – navigating supply chain pressure points – whilst Lipari take care of ‘the right place’. 

To offer context into how important this ‘future proofing is’, brioche, as a category, delivers a significant $470 million to the U.S. bakery sector – up from just $90 million in 2018. St. Pierre has delivered double-digit growth consistently for five years, is worth more than $100 million and is growing at the same rapid rate as the category we created. 

In laying the foundations for growth now, we are underpinning the success of a swiftly growing sector. 

The pandemic has transformed shopping habits. How can brands help retailers to re-engage shoppers? 

The key for the deli and instore bakery is in providing an experience for shoppers – rather than just a functional shopping trip. For shoppers, it’s emotional more than practical and that’s why it carries such great opportunities for retailers to drive impulse purchase, away from the grocery aisle. 

St. Pierre offers consistent, quality and authentic brioche placed in the grocery deli and ISB, offering new ways for consumers to experience great bakery. From our Eiffel Tower stands that communicate the authenticity of our French brioche to our inclusion in rustic bakery baskets – we help deliver an in-store experience that doesn’t require any on-site bakers – perfect for the more premium eating occasions. That’s how the perimeter will draw footfall back in a post-COVID environment.

We provide merchandising support at no extra cost to retailers. One of the most prominent ways we’re doing that is with our range of Eiffel Tower Racks that are set up in the In-Store Bakery (ISB) – not in the bread aisle. The brand imagery is incredible. It communicates quality and authenticity, gives stores additional selling space, and tends to command higher shopper spend. We’ve seen sales increase up to 58 percent in one trial when the racks were stocked.

We have an entire team dedicated to creating programs tailored to individual retailers’ needs. We can design special promotions, regional billboards, and innovative rack programs, for example, that help drive customers to the display. That is important because once we’ve helped drive the footfall, shoppers go on to spend more in the segment. Our displays provide a trip trigger into ISB and increase average basket spend. That’s why people like Kroger support us so well – we are delivering for our customers so they can deliver for their shoppers.

From the point of sale to the last bite, everything about the brand is about delivering an elevated experience, which is key to getting customers back in stores in the wake of the pandemic and why we are experiencing a loyalty rate 21 percent higher than average. 

Do you have any tips for retailers to increase basket-spend? 

By highlighting authenticity, cross-selling with the breakfast, brunch and snacking occasion products and clever merchandising, St. Pierre provides the tools for grocery stores to maximize sales and basket-spend.

This year, St. Pierre is investing heavily in expanding the display rack program. Alongside our signature Eiffel Tower stands, we are offering Eiffel Tower table-toppers to drive sales in stores where space is at a premium and enabling retailers to drive sales through key cross-merchandising initiatives. 

For grilling season this year, we are launching branded ‘knee-knockers’. These new display solutions mean that we can take that in-store, branded experience to new sectors of the store. It makes perfect sense to place premium buns with premium meats and grilling ranges. Some stores aren’t set up to do this, so we’ve created a solution to help increase basket spend at a key time of year. If you place your premium offering next to your refrigerator units – not only are you saving the shopper a trip to the bread aisle, but you’re making it more likely that they’ll spend dollars with America’s favorite brioche, rather than opting for a basic bun or hot dog roll from the commercial bread aisle. It’s a win-win. 

 

Insight is critical to retailers looking to maximize sales. Do you have any advice around how best to find and interpret insights to drive sales opportunities? 

Each and every grocer or broker who partners with St Pierre has access to its unique sales platform, providing tools to maximize sales. From customer insights to branded merchandise and everything in between, it offers a ‘best practise’ toolkit to capitalize on growing shopper appetite and ensure buyers get the most out of the brand’s USPs. 

Included on the brand hub are useful insights. Savvy retailers will monitor where growth is coming from and use that knowledge to drive impulse purchasing. The hub shares up-to-date Nielsen data to assist retailers – in knowing which sectors are driving growth, they can adapt merchandising accordingly – whether that’s morning goods and croissants or burger buns and hot dogs. 

Such insights allow retailers to maximize impulse purchases, tailoring the shopper journey and taking stores from a functional visit to an experience. That’s the most effective way to increase basket spend and impulse purchase.

For more information on St. Pierre, visit stpierretrade.com.

To learn more about Wagstaff on our Experts page, click here.

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