To bring this story to life, let’s start with two personal anecdotes.
First Steve’s story: In 1988, I remember the talk of Wal-Mart opening their first Supercenter with plans to have over 200 Supercenters throughout the United States by 1995. To think that Wal-Mart Supercenters could go from zero to 200 stores in such a short period of time, especially considering the need for such an intense focus and learning curve on the extremely important perishables category, surprised food experts. Consumers at that point were skeptical that the Wal-Mart they were familiar with could fulfill their needs like supermarkets had done for years, but traditional retailers were concerned. Today, there are nearly 3,000 Wal-Mart Supercenters (1) and they are one of the top sellers of beef in the world.
Now John’s story: Some years back, I asked a younger single friend if she thought the peaches had been “good this year”. She responded that she had “missed the season”, and really hadn’t been in a grocery store while they were merchandising peaches. I noted that the peach season lasted 3-4 months, and she noted, “that would be about right, I really haven’t shopped for groceries much in 3-4 months." Further discussion made me realize that she planned her life around activities, and then would find food that happened to be close by.
The point of these two stories is to spotlight why food distribution will continuously evolve. New players will enter the game. And consumers, at certain points in their lives, will adopt new strategies for getting the food they want.
To read the rest of the story, please go to: NCBA's Beef Issues Quarterly
