When you pick up a box of cereal or a carton of eggs, it might say any one of these: “Sell by,” “Display until,” “Best before,” or “Use by.”
The actual expiration date — when the food is no longer safe to eat — is often difficult to figure out.
To clear that up, 50 of the world’s biggest food and retail companies — including Campbell, Walmart, Kellogg, and Nestlé — are changing their expiration labels exclusively to “Use by” by 2020. The food retailers, which are part of the Consumer Goods Forum Board (CGFB), voted unanimously on the change September 20.
The board determined that confusing labeling is one of the leading causes of food waste around the world, since consumers might be unsure if a particular item still okay to eat. In the US, an estimated 40% of food that is bought is thrown out. Globally, about 1.3 billion tons of food are wasted, which contributes to 8% of annual greenhouse gases.
“Standardizing food date labels is a simple and effective way to reduce the amount of edible food thrown out by households, saving them money and reducing their environmental footprint,” The Consumer Goods Forum said in a press release.
Beyond the environmental benefits, the board notes that simplifying labels could save consumers money. The average American family tosses out $1,500 worth of groceries annually, according to the forum. In the UK, that figure is $947.
In addition to the label change, the companies have devised a plan to educate consumers about food waste by partnering with manufacturers, government agencies, and NGOs.
There’s a growing movement to reduce food waste at nearly every point in the supply chain, from the farm to the fridge. Some organizations are visiting farms to collect non-harvested crops for food banks. And s tartups, like Imperfect, are selling “ugly” fruits and veggies at lower prices that traditionally “beautiful” produce. The switch to “Use by” could be a simple change that builds on the fight against food waste.
Study: Amazon, Walmart Outscore Food Retailers On Online Satisfaction
The Retail Feedback Group (RFG), a provider of actionable stakeholder feedback, has released its 2017 U.S. Online Grocery Shopper Study. This new research found about half of online shoppers plan to purchase grocery items more often in the coming year and rate their overall satisfaction ordering food and grocery items online highest with Amazon(4.63 on a five-point scale where five is highest), followed by Walmart (4.41) and supermarkets/food stores (4.32). The research also examined generational differences, finding fairly similar overall satisfaction scores across Millennials (4.50), Gen X (4.45) and Boomers (4.50).
Segmenting satisfaction scores on a variety of ordering, fulfillment and people factors, by provider, results in interesting findings, says RFG, especially when comparing those who are “highly satisfied.”
Amazon shoppers
Amazon shoppers rated nearly all of the elements of the online shopping experience significantly higher than supermarket/food store shoppers.
Amazon shoppers also rated six elements significantly higher than Walmart shoppers:
The online checkout process worked well and without problems;
The website/app worked smoothly during the whole order process;
The items I wanted to buy were available on the shopping website;
It was easy to navigate through the site/app to locate the items I wanted;
The order pickup or delivery process was prompt and efficient; and
The checkout staff or delivery driver was friendly.
Walmart shoppers
Walmart shoppers rated four elements significantly higher than supermarket/food store shoppers:
The online checkout process worked well and without problems;
It was easy to identify sale or specials prices and have those discounts applied during checkout;
Overall I received good value for the money I paid for this order; and
There was an available pickup time or delivery time that was convenient for me.
Supermarket/food store shoppers
These shoppers registered lower “highly satisfied” scores on nearly all elements measured versus Amazon and Walmart online grocery shoppers. There was relative parity with the other providers on just one element—the checkout staff or delivery driver was knowledgeable and professional.
“Clearly Amazon has effectively leveraged its deep roots in online retailing to inform their efforts in online grocery, leading to the strongest “highly satisfied” marks found in our research,” said Brian Numainville, RFG principal. “Walmart, although registering lower than Amazon on overall satisfaction and on several of the elements measured, also scored meaningfully higher than supermarkets/food stores in several areas core to their brand, including value, as well as identifying and receiving discounts. It appears supermarkets and food stores have work to do to improve their scores in online grocery shopping relative to these retailers.”
Online versus in-store grocery shopping
The study also sought to understand the perceived strengths of grocery shopping online versus in-store. Consumers in the study indicated that online grocery shopping strengths include making the most efficient use of their time and more convenience. On the other hand, in-store shopping strengths registered as providing products best meeting standards for quality and freshness, offering a better selection of products for shopper needs, making shoppers feel more valued as a customer, providing better customer service, showing the company knows and cares about food, and providing more value for the money spent. A few areas—including pleasantly surprising, enjoyable, and taking better care of securing payment and personal information—received more of a balanced assessment across both types of shopping.
Doug Madenberg, RFG principal, said, “While our research shows that in-store shopping currently holds a stronger position relative to online grocery shopping in quality and freshness, selection, service and value elements, brick-and-mortar retailers can’t afford to be complacent as online ordering could strive to reshape these areas in the future and negate some of these advantages. Further, retailers operating both online and in-store food retailing channels should leverage the strengths of each to their fullest advantage.”
Produce is a key factor
Shoppers who indicated anything lower than a five on the statement, “The items I received met my standards for quality and freshness” were asked to name the department(s) where quality fell short. Produce had the highest percentage of responses at 39 percent.
About eight out of ten online shoppers indicated that freshness and quality were the top factors they consider very important when purchasing produce online. Among those who do not purchase produce online, the top reasons given centered on wanting to choose produce items themselves (66 percent) or that produce items might not be fresh enough (55 percent). Interestingly, the lowest-scoring reasons given were that there was limited variety available (16 percent) or that prices might be higher than in the store (14 percent).
Grocery retailers, food distributors and media outlets can obtain a free copy of the full report at report@retailfeedback.com. The study is based on a nationally representative sample of 760 respondents who shopped online for food and groceries in the last 30 days.
The Retail Feedback Group offers a spectrum of research, consumer insight and consulting services. Its flagship program, Constant Customer Feedback (CCF), is an automated feedback platform designed and introduced for supermarket retailers, and is currently implemented in hundreds of locations across the U.S. Other RFG services include employee engagement and culture assessments, customer satisfaction surveys, consumer research and market analysis.
Researchers may have found a simple way to reduce grocery store thefts
After Illinois changed its food stamp schedule, grocery store thefts decreased by 32%.Joe Raedle/Getty Images
Before February 2010, Illinois delivered food stamps under the Supplemental Nutrition Assistance Program (SNAP) on the first day of every month.
Then the state decided to spread distribution more evenly throughout the month.
The decision had two main benefits. Stores weren’t hit with massive crowds all at once, and SNAP officials weren’t burdened with a large workload.
New research suggests that there could be an additional advantage of the change: a reduction in grocery store thefts.
Analisa Packham of Miami University and Jillian Carr of Purdue University analyzed Chicago crime reports before and after the policy changed, from February 2008 to February 2012. They found that spreading out the distribution of food stamp benefits lowered grocery shoplifting rates by 32% immediately after the change.
Before the switch, crimes generally peaked in the last week of the benefit cycle, particularly among older women. The report estimates that because half of all families receiving SNAP exhaust their benefits in two weeks, the distribution timing change likely made them feel less financially desperate by the end of the month.
Packham and Carr say that the statewide policy decreased grocery store thefts in Chicago by over 500 cases per year. Currently, seven states — Alaska, Nevada, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont — have one SNAP distribution date monthly.
In the US, approximately 45.4 million people participate in SNAP. Formerly known as the Food Stamp Program, SNAP gives grocery allowances to Americans who live at or below 130% of the federal poverty line.
According to the most recent data available, the average SNAP household receives $256 monthly, with 76% of benefits going to homes with children. According to demographic data, the largest percentage of SNAP recipients are white (39.8%), followed by African-American (25.5%). The goal of the program is to alleviate food insecurity across the country.
Providing SNAP benefits later in the month could help participants moderate consumption and avoid financial desperation at the end of each month, the researchers write.
This 1 Crafty Underdog Could Dethrone Amazon and Whole Foods in the Grocery War–Before It Even Starts
There’s one grocery chain you shouldn’t discount when it comes to winning the grocery wars.
By Rebecca Hinds
CREDIT: Getty Images
Amazon’s acquisition of Whole Foods has rattled the grocery industry. Already, price adjustments have taken effect, with Whole Foods slashing the price of store staples like avocados, coconut water, and farmed salmon. Shoppers are rejoicing, celebrating what seems to be the end of the company’s “whole paycheck” epithet.
But, while many experts expect the bombshell $13.7 billion acquisition to put Amazon on the key path to gaining supremacy in the “grocery wars,” there’s an underdog that may prove victorious.
This morning, I could just as easily have ventured in an opposite direction to my neighborhood Whole Foods. Instead, I opted for Trader Joe’s. And it seems I’m not alone. Consumers young and old consistently give Trader Joe’s top marks against Whole Foods. Why these accolades?
1. Limited Offerings
In 1995, Columbia University professor Sheena Iyengar performed an experiment that involved exposing shoppers to displays of jams, ranging in number from six to 24 different varieties. When presented with only six jam options, consumers were more likely to make a purchase, compared to when they were presented with 24 options. Why? When we’re presented with more options, we tend to question ourselves. Our cognitive load increases, with the result that we feel overwhelmed and are less likely to make any decision at all.
Trader Joe’s minimizes the cognitive load associated with a typical grocery shopping experience. The chain carries only about 4,000 products (typical grocers stock roughly 50,000 products). And 80 percent of products don the Trader Joe’s private label. This morning I might have been stymied by the 10-plus varieties of almond butter stocked by my neighborhood Whole Foods. Instead, I was quick to select Trader Joe’s tried and true Raw Creamy Almond Butter.
Not only does Trader Joe’s offer less product, it also limits options according to season. Loyal shoppers attest to eagerly awaiting Trader Joe’s “Fearless Flyer” to keep in the know about when their favorite products will return to shelves. With its seasonal offerings, Trader Joe’s strategically leverages the power of scarcity, one of Robert Cialdini’s six influence tactics. Scarcity is based on the notion that humans feel taxed emotionally when they believe their freedom has been infringed upon. If consumers think their coveted boxes of Candy Cane Joe-Joe’s won’t be available next month, they’re more likely to buy today. Trader Joe’s website explains:
[Candy Cane Joe Joe’s are] a holiday-only item. We know there are those of you who’d like to find them every time you shop at Trader Joe’s. We sympathize. But we also know exactly how happy you are when the holiday season rolls around and you encounter your first box of the season. It’s your joy, ultimately, that convinces us to offer these only seasonally.
The fear of missing out is powerful–and something you’re unlikely to experience at a grocer now owned by the Everything Store.
2. First-Rate Customer Service
Contrary to popular belief, first-rate customer service is becoming more–not less–important. Roughly 40 percent of customers decide to purchase from a competitor due to a reputation for superior customer service.
As I meandered through Trader Joe’s this morning, I couldn’t help but notice the ambience. There was no PA system distracting me as I sampled Trader Joe’s new Organic Nicaragua Coffee. Instead, I heard periodic ringing of bells. The nautical-like bells are part of a highly strategic Morse code-like system. One bell signifies to the “crew” the need to open another register, whereas three bells commands a manager to action. The system makes for a more enjoyable consumer experience. The company’s website explains, “Those blustery PA systems just didn’t feel right to us, so we came up with a simple system to communicate.” The bells are not only less encumbering than the typical PA systems you find at Whole Foods and its grocery brethren, they also increase efficiency by immediately alerting workers as to specific needs. They help explain why Trader Joe’s sells twice as much per square foot as Whole Foods.
Customer service is further enhanced by a generous return policy. Customers can purchase anything and, if unsatisfied, return it for a full refund. I’m much more likely to experience a series of questions and a snide glance or two–or even an outright “no”–if I attempt to return a grocery item to any other grocer. Trader Joe’s policy cleverly leads to increased spending and impulse buying because it minimizes the chances of feeling buyer’s remorse.
3. Storytelling
In contrast to Amazon and Whole Foods, Trader Joe’s is bereft of a mammoth marketing budget. Instead of spending millions of dollars on advertisements, Trader Joe’s casts its products using a medium that humans are hardwired to enjoy–storytelling. Consider the company’s description of its Quiche Lorraine:
While we already sell a variety of frozen quiche, we’ve yet to provide our customers with the classic from Lorraine, France. The reason for our delay has had to do with…ham. You see, Quiche Lorraine must not only have a perfectly flaky, buttery crust–it must also have plenty of ham…. After a diligent search, our developers finally found the right supplier in San Francisco.
Contrast this with Whole Food’s description of its Quiche Lorraine:
Start the day with style! Our Lorraine quiche features bacon and cheese with silken custard in a flaky pastry shell.
Instead of relying on generic labeling and ingredient lists, Trader Joe’s brings its products to life, even giving shoppers suggestions in terms of how to enjoy the product:
Serve it for breakfast with fresh fruit, or for lunch with fresh greens. It feeds four, unless you cut it into smaller pieces and serve it as an hors d’oeuvre. So versatile! So quiche-able.
Research shows that consumers primarily use emotions as opposed to features and facts when evaluating brands. For Trader Joe’s, it’s all about giving a life and voice to its products and this gives it a key advantage.
Though many have written off Trader Joe’s as a viable contender in the grocery store wars, I wouldn’t be surprised if we see the unfolding of a David and Goliath tale. Whole Foods will need to take a page or two from Trader Joe’s “Fearless Flyer” if it hopes to reign superior and whet the appetites of the masses.
BRIEF
Study: Value, deals and coupons have strong influence on grocery purchases
A growing number of shoppers expect grocers to offer online shopping and home delivery, but good online and in-store deals are also of primary consumer interest, according to a survey by media delivery firm Valassis.
Ninety-five percent of survey participants said they want coupons for grocery items, and 51% actually plan their shopping trips around retail circulars, coupons and deals.
While consumers look for deals both online and offline, 99% of the 163 billion coupons distributed by consumer packaged goods companies are issued through print media, according to a Valassis infographic. Yet 16% of the 1.08 billion coupons consumers redeem are from digital formats, with the other 84% print coupons. Valassis calls this a “redemption activation imbalance” between marketer choices and retailer influences.
Dive Insight:
When it comes to grocery shopping, most consumers are deal-seekers and still love to clip coupons, whether print or digital, in order to save money. Today’s shopper also expects savings from these deals to apply whether they’re shopping in-store or online.
“Digital disruption remains a prevalent theme today, and the more grocers can focus on providing value to consumers in new as well as proven ways, the more success they’ll experience. This includes offering coupons via every channel — including print — and catering to the latest consumer preferences for ordering groceries,” Curtis Tingle, chief marketing officer of Valassis, said in a statement.
A disconnect exists, however, in the way brand marketers currently distribute coupons and the way consumers are actually redeeming them. Many food manufacturers are stuck in an old-school print world while retailers and consumers are pushing toward digital. This latest Valassis study finds that 57% of shoppers are more likely to buy groceries online if they can use more coupons. This figure jumps to 73% for millennials.
Another sticking point is the huge time investment involved in coupon-clipping. According to Valassis’s findings, one in four couponers spends more than four hours a week looking for deals. It seems the right time for players across the grocery sector — brand manufacturers, retailers and coupon/media companies — to align forces to try and cut that amount down and make savings easier for consumers to find and apply.
According to a study by Forrester Research, 79% of shoppers say they wouldn’t buy an item if they forgot to bring the corresponding coupon to the store with them. A new Deloitte study found that 51% of grocery sales are now digitally influenced. This kind of shopper behavior certainly makes a strong case for more digital coupons. Manufacturers and retailers that make coupons easy to find on their websites, social media or mobile apps could see a greater bump in product purchases.
Digital coupons are also a win for retailers, which can use shopper data to target consumers and their likely purchases. Through data generated from a shopping app, for example, retailers would know what the consumer may be most interested in, as well as when he or she may want to purchase it. The evidence is mounting. A digital revolution of the coupon industry should happen sooner rather than later.
Aldi is fixing a major weakness and coming straight for Whole Foods
Aldi is taking aim at Whole Foods.Business Insider/Hayley Peterson
The discount grocery chain Aldi is taking aim at Whole Foods with a new store design.Aldi is ramping up its rollout of a new design that looks almost identical to Whole Foods’ cheaper chain of stores called 365 by Whole Foods.
On Monday, the grocery retailer announced it is opening more stores that feature the new design after stores that utilize the layout outperformed traditional Aldi locations. The retailer is spending more than $1.6 billion to revamp stores and open locations with the updated format.
The Aldi stores’ new design features softer lighting than its older stores, as well as a larger fresh produce section, wider aisles, and electronic displays on the walls.
Here’s what one in Richmond, Virginia, looks like:
The new Aldi store looks similar to its older stores on the outside.
Business Insider/Hayley Peterson
But stepping inside, it feels much different. The lighting is softer and more natural, and the aisles are wider.
Business Insider/Hayley Peterson
Permanent eye-level shelving fixtures are everywhere in the new store. In the older stores, shown below, many items are stacked on top of each other in cardboard boxes instead of placed on shelves.
Business Insider/Hayley Peterson
Spotlights in the new store help make the fresh produce section a central focus.
Business Insider/Hayley Peterson
The produce area is much larger than in Aldi’s other stores.
Business Insider/Hayley Peterson
Like in other stores, most of the produce is sold in bulk packaging.
Business Insider/Hayley Peterson
It looks similar to this 365 by Whole Foods store in Los Angeles, which is about the same size as Aldi and also features metal, eye-level shelving fixtures and a centrally located produce section.
Reuters
At the new Aldi, there’s a large refrigerated section devoted to produce.
Business Insider/Hayley Peterson
Fruit, salad greens, and vegetables are available, as well as premade dips and soups.
Business Insider/Hayley Peterson
Like at 365 by Whole Foods, there’s no deli at the Aldi store, but there are tons of packaged cheeses and meats to choose from.
Business Insider/Hayley Peterson
Digital displays and lit signs everywhere promise quality and freshness.
Business Insider/Hayley Peterson
Refrigerators line the store.
Business Insider/Hayley Peterson
365 by Whole Foods, shown here, has the same setup with the produce section in the middle of the store and frozen and refrigerated items on the perimeter of the store. Both stores also have very limited signage.
Reuters
Unlike 365, however, Aldi sells home goods like pillows and holiday decorations.
Business Insider/Hayley Peterson
Aldi, which is about 30% cheaper than Walmart, is growing rapidly. The chain has about 1,600 stores in the US with plans to add another 500 in the next couple of years. 365 by Whole Foods has six stores with plans to add 16 more in the next year.
New ‘imperfect’ produce option at Meijer helps customers save money, reduce food waste
INDIANAPOLIS — Grocery store chain Meijer has started a new program for customers who want to reduce food waste and save money by sacrificing aesthetics, according to WXIN.
A new line of Misfits produce helps connect shoppers to tasty but cosmetically-challenged fruits and vegetables at a reduced price.
Meijer says even though the produce may be discolored, scarred or odd-sized, it has the same taste, freshness, and quality of other produce in the store.
Misfits produce items will vary each week based on their availability, and the discount is between 20 to 40 percent. Customers should look for the Misfits bins in the produce section of their local Meijer store.
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