Space-efficient, vibrant packaging is the key

The stakes have been raised in the increasingly competitive contest for retail grocery shelf space. Square footage is at a premium, with store purchasing agents focused almost exclusively on generating the highest revenue return on each and every inch of shelving.

The depth and breadth of the competitive landscape is the driving force behind the hyper-focus on profitability. Traditional food retailers are under assault from a wide variety of alternative channels including warehouse clubs, supercenters, drug stores, mass retailers and convenience stores, as well as online retailers and grocery delivery services. According to the Nielsen survey Think Smaller for Big Growth, the retail store model has evolved over the past 10-15 years to benefit smaller stores. “Supply chain process improvements have made it possible to achieve similar or even higher levels of profitability with smaller stores, paving the way for smaller retail chains to expand and take share from larger competitors in many markets.”

How are these traditional food retailers reacting to this pressure? According to the Duff & Phelps Food Industry Insights Report, “Traditional food retailers, facing increased pressure from alternative channels, are testing new concepts to retain market share. As consumers distance themselves from the traditional supermarket model, grocery retailers are attempting to stay competitive by creating more intimate and innovative shopping experiences tailored to individual shoppers.”

Merchandisers are changing assortment, providing more shelf space to fresh, organic, and prepared food options to appeal to contemporary tastes that are rapidly evolving. The extent of these newer food offerings is best illustrated in the following statistic from the Food Marketing Institute: In the mid-1970s, the average supermarket featured fewer than 9,000 products; today grocers offer nearly 45,000 different items. That translates into less space for traditional food offerings including vegetables, beans, tomatoes, pet food, soups, and sauces.

How can these products compete for attention and market share in these more confined environs? Do their packages enable maximize shelf space? Moreover, do they stand out?

When products such as vegetables and sauces are packaged in the revolutionary Tetra Recart® package, the answer to the questions mentioned above is an emphatic YES! The rectangular shape of the Tetra Recart^® package stacks and lines up in perfect synergy, leaving next to zero wasted space on the shelf. How much can more product fit on your retailer’s shelf than with cans or jars? Tetra Recart® takes 30-40% less space than those packages of yesteryear.

So, it’s pretty clear how Tetra Recart® can stock product clean and neat. But how does it better influence in-store decision making? These cartons enable high-quality printing on all sides and a flat front panel for super displays. A company’s brand promise is always faithfully presented the customer exactly the way the produced intended: fun, vibrant, colorful, compelling.

When you can’t create more shelf space out of thin air, it’s time to establish more room for product variation or volume with Tetra Recart® To learn how, contact an IPM Foods representative today.