C-stores are considered viable alternatives to traditional grocers and supermarkets.

International Dairy-Deli-Bakery Association’s (IDDBAs) annual trends research report, What’s in Store 2016, has revealed that non-traditional retail channels such as convenience stores, drug stores, farmers markets and online shopping are seeing continued growth.

These non-traditional channels also account for a larger percentage of the food retail market as many consumers—particularly Millennials and Gen Z—view them as viable shopping alternatives to traditional supermarkets and grocers.

Other findings from the report’s Channels & Competition section are:

• Ecommerce sales for food and consumables will grow 12.1% annually through 2019.
• Despite increased competition, almost 50% of grocery retailers are significantly more optimistic about 2015 than they were a year ago. Top areas of concern are data protection and security, price increases and benefits, such as minimum wages and the Affordable Care Act.
• As delis are now competing directly with foodservice and garnering ideas, the retail sector is seeing a “premiumization” of cheese, specialty meats and olives, as well as complementary items.

Tim O’Connor, vice president, RetailNet Group, told IDDBA that it is better to look not at traditional channel definitions and look more at positioning and strategy for the retailers to see who will grow or decline.

“Small box supermarkets with great proximity to shoppers and progressive fresh stores will grow well,” he said. “Traditional grocers who expect shoppers to keep coming to their stores when so many more convenient and positive experience options are available will see their trips, volume, sales and return on invested capital continue to decline.”

With 30 years of credible reporting, What’s in Store is an essential dairy-deli-supermarket foodservice-bakery-cheese resource providing vital data on the retail and market trends, growth and category changes shaping the food industry. IDDBA also offers What’s in Store Online, a collection of 150 downloadable tables, as well as white papers and trends articles.

A secondary research report, What’s in Store is developed through both interviews with industry experts and sourcing of third-party data and trends.

This year’s edition has a more continuous storyline to improve user efficiency and provide greater clarity for professionals needing to understand today’s retail world. Through five themes, readers gain new insights and learn about marketplace influences. In addition to Channels & Competition, they are:

• The Economy & Retail Trends
• Consumer Lifestyles
• Eating Trends
• Technology and Marketing

The themed narrative is carried into each of the product chapters: Bakery, Cheese, Dairy and Deli. The new format, exclusive interview content and inclusion of key insights, table interpretations, data callouts and testimonials enables the reader to more efficiently tie back to the broader context and then dig deeper in each of the product sections.

“Where consumers shop for food has changed dramatically, as new retail channels—both brick-and-mortar stores and online marketplaces—create both challenges and opportunities for today’s food retailers,” said Eric Richard, education coordinator, IDDBA. “Whether it’s convenience, cost or specialty products, many of today’s consumers—especially Millennials and Gen Z—are more apt to shop non-traditional channels. It’s pertinent that retailers understand this evolving retail landscape and omnichannels in order to better connect with shoppers.”