Grocery Stores Remain Relevant As Physical Retail Space Suffers During Pandemic

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This article originally appeared in the December edition of Presence Marketing’s Industry Newsletter

By Steven Hoffman

“We are clearly overretailed in America,” Byron Carlock, director of U.S. retail estate practice for London-based Pricewaterhouse Coopers (PwC), told Fast Company in November. “Suburban sprawl created a situation where we just believed that every time there was a new intersection with four corners we needed to put up four strip centers. We’re learning differently now,” he told Fast Company.

According to PwC, average retail space for countries including France, Germany, the U.K. and Japan is less than 5 square feet per person, vs. in the U.S., where physical retail spaces averages more than 23 square feet per person. In other larger countries like the U.S., retail space is higher: in Canada, average retail space is 16 square feet per person; in Australia it’s approximately 11 square feet per person, according to PwC.

As e-commerce sales continue to grow, analysts were already seeing brick and mortar retail space shrink and transform before then pandemic. Now, however, “some prognosticators think we’re not only overretailed, we’re underdemolished,” Carlock said. “There will be retail that will be demolished and repurposed, and then there will be retail that continues to support our lifestyles and is relevant and is useful and is important,” he told Fast Company.  

As the pandemic changes the face of retailing, PwC says that “necessity-based” retail, including grocery stores, pharmacies and other “neighborhood-oriented” retailers will remain relevant. Carlock estimated that physical retail space in the U.S. may ultimately looks more like Canada’s average 16 square feet, representing a 30% decrease in physical retail space in the U.S.

As retail rents drop – Fast Company reported that in New York alone, retail rents in major commercial areas have declined approximately 13% in the third quarter 2020 – the repurposing and reuse of former retail space in desirable areas may be on the rise. In addition, Carlock told Fast Company that the demolition of existing underused retail can make use for other residential or mixed use development.

Customers Name Seven NCG Co-ops as their States’ Top Independent Grocers

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Originally Appeared in Presence Marketing News, February 2020
By Steven Hoffman

Using data from Yelp and Google Trends, market research firm 24/7 Tempo recently released a ranking of top supermarkets and grocery stores in each state. In seven U.S. states, customers ranked retail food co-ops, all members of the National Co+op Grocers Association (NCG), as their favorite independent grocery stores, reports the National Cooperative Business Association (NCBA). “Unlike corporate grocery chains, food co-ops are totally independent and owned by the community members who shop there. Instead of focusing on investors, food co-ops focus on providing fresh, healthy food for shoppers, creating sustainable jobs for employees, building a strong regional food system for everyone, and giving back to their community,” said C.E. Pugh, CEO of NCG, told NCBA. “It’s no surprise that so many shoppers appreciate the value of their community-owned food co-op, but few industries are as competitive as the grocery business, so that makes us especially proud of our member co-ops achieving these hard-earned rankings. It’s a true testament to our co-ops working diligently to serve their members and communities, and toward the day when everyone has the fresh, healthy food they deserve,” she added. Customers voted the following seven retail food co-ops as their favorite independent grocery store. 

•           Alaska: Co-op Market Grocery & Deli, Fairbanks

•           Maine: Portland Food Co-op, Portland

•           Nevada: Great Basin Community Food Co-op, Reno

•           New Mexico: Mountain View Market, Las Cruces

•           North Carolina: Tidal Creek Cooperative Food Market, Wilmington

•           Tennessee: Three Rivers Market, Knoxville

•           Vermont: City Market/Onion River Co-op, Burlington

Grocery Manufacturers Association Announces Name Change, Renewed Focus

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Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman

The Grocery Manufacturers Association (GMA), representing some of the world’s largest consumer packaged goods companies, on September 26 announced it will change its name to the Consumer Brands Association (CBA), effective January 2020. The new identity is part of a sweeping overhaul of the 110-year old trade organization, led by President and CEO Geoff Freeman and the GMA board of directors. “We represent an industry of iconic brands that are innovative, forward-looking and touch the lives of every American,” Freeman said. As the new Consumer Brands Association, we are making a game-changing shift to unite the totality of the consumer packaged goods (CPG) industry around a focused, proactive agenda that aligns with the values of the brands we represent and the consumers they serve.” In a statement GMA added, “This is about more than a new name or new logo. Our brand change reflects a sea change — we are a new organization, representing the totality of the consumer packaged goods industry and establishing a new presence in Washington and beyond. The transformation of our organization reflects today’s era of transparency and consumer-first thinking.” GMA says its new advocacy agenda represents the broader interests of a modern CPG company by focusing on four core pillars: enhancing packaging sustainability; championing smart regulation; creating frictionless supply chains; and building trust in CPG, while also advancing a narrative about the industry’s social and economic impact. GMA recently released the industry’s first-ever economic study, which found the CPG industry supports more than 20 million American jobs and contributes $2 trillion to the country’s GDP.