![]() ![]() An improved omnichannel shopping experience In addition, SFM has improved and increased its selection of ready meals that target health and plant-based oriented consumers, as well as improving its frozen section in new stores. He added the retailer has “invested a lot of time and energy” creating innovation centers in stores where consumers can find rotating products they can’t find anywhere else. ‘Elevating the level of service in our stores’įirst, Sinclair said, SFM is “elevating the level of service in our stores to meet the needs of our customers and distinguish ourselves from the competition,” which includes revamping the sampling program, “increasing speed at checkout and proactively helping customers navigate the store, while finding products that align with their dietary needs.” The retailer is doing this by pursuing a three-prong plan. He explained that more than 60% of the business now comes from “high frequency customers,” which is a reflection of SFM’s goal “to drive our current customers to shop more often and to encourage trails from new customers who are also within our target audience.” While the benefits from the increased traffic and positive comp transactions were partially offset by a slight decrease in basket items year-over-year, likely due to consumer adjustments for inflation, Sinclair said he is encouraged by the company’s most recent performance, which he says is “a direct result of the strategic changes we have made over the past few years to differentiate ourselves as a specialty, health and food retailer.” The decision to become more of a specialist retailer versus a broad mass market retailer initially cost the retailer about 25% of its transactions in the second quarter of 2020, but now “our traffic trends are improving and our newer stores on average are exceeding our internal expectations,” CEO Jack Sinclair told investment analysts Monday during the company’s first quarter earnings call.ĬFO Chip Molloy explained the “slightly better traffic in Q1” than anticipated contributed directly to the increase in comp sales, which one analyst noted reached their highest levels since 2020. The retailer saw comparable store sales grow 3.1% and total sales growth of 6% to $1.7bn in its first quarter reported May 1 thanks in part to strategic decisions made pre-pandemic (and inflation) to discontinue what it considered “ineffective and unprofitable promotions” in favor of competitive produce pricing and product differentiation that targeted loyal shoppers. Emulsifiers, stabilizers, hydrocolloids. ![]() Chocolate and confectionery ingredients.Carbohydrates and fibers (sugar, starches).Plant-based, alt proteins, precision fermentation. ![]()
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