Food Retail Innovation Now in Truckee, CA

Raley’s, the family-owned Sacramento-based supermarket company, recently launched a new grocery store concept they envision as a model of how food retail should evolve to build consumer relevance. Located in picturesque Truckee, California, just outside Lake Tahoe, the trading area is populated with families devoted to an active, outdoor lifestyle.

Raley’s designed the store concept with Truckee’s active families in mind – visualizing a supermarket focused entirely on healthy living. The Raley’s O-N-E Market banner (Organics, Nutrition, Education) is a four-walled, 36,000 square foot better-for-you food discovery zone. Designed for people who understand there may be a direct link between what you eat and the quality of your life, the concept mirrors their desire to seek out better choices, explore a more mindful selection of products, and learn about improved nutrition. Remarkably, it is a food store that embodies owner Michael Teel’s higher purpose mantra to “change the way the world eats one plate at a time.”

“We have been on a journey for health and wellness, and Raley’s O-N-E Market is the next step in our company’s transformation,” said Chelsea Minor, Raley’s Corporate Director of Public Affairs. “Raley’s O-N-E Market offers a highly-curated assortment of products that are organic where possible, wholesome, minimally processed, sustainably sourced and offers a stage for nutrition education. We want consumers to understand why these products were selected for our shelves and why they are better options for them and the community,” she said.

Who is really in charge, merchant or customer?

For the most part grocery stores operate in reverse from consumer lifestyle insight.  The shopping design and experience is most often built from the merchant’s business model intended to move boxes, cans and bags off shelves at velocity. Thus, in many ways, grocery stores are entirely recognize-able banner to banner with merchandise schemes and traffic flow patterns that follow a commoditized approach to assortment and shopping experience.

Which begs the question: what if a store format is re-imagined as a reflection of the lifestyle interests of its core customers, instead of the other way around? “The biggest differentiator is our product mix. We emphasize foods ‘free from’ artificial ingredients, colors, high fructose corn syrup, hydrogenated fats and oils and more. We source organic where possible – in produce over 60% of the department is organic to meet consistently high standards for health, nutrition and sustainability,” reports Minor.

As evidence of that commitment Minor says shoppers will not find any conventional soft drink products inside the store. Indeed, sugar awareness is a priority at Raley’s O-N-E Market. Any cereal containing more than 25% of its total calories from added sugar per serving is identified with a ‘Higher in Added Sugar’ shelf tag. Other categories getting the sugar evaluation include Ready-to-Drink (RTD) beverages, pasta sauces, baby food, protein bars and condiments like BBQ sauce and ketchup.

To help consumers make better decisions while shopping, digital screens in the front of the store rotate messages by department providing information on healthier choices. Foodservice areas use window clings and the menu board to help convey this useful information. Better-for-you guidance is also provided in price rails at the shelf to help shoppers make informed purchase decisions.

Retailer as life partner on journey to healthier lifestyle

Raley’s believes the consumer should be equipped to shop with better information and guidance. In an effort to help them realize their healthy living ambitions, the product options they’ll encounter already lean heavily in that direction. In the high traffic meat department, attributes such as organic or anti-biotic free are flagged within an assortment that’s already curated with healthier and higher quality choices in mind.

To help fulfill the Education mission, the Truckee Raley’s O-N-E Market is their first store to have a registered dietitian on-site to interact and coach consumers. Scott Brown, Raley’s first in-store registered dietitian nutritionist (RDN), is there to conduct nutrition tours, provide one-on-one healthy living consults and answer customer questions. Raley’s customer loyalty platform also gets a twist in Truckee: the “Something Extra Health” program offers biometric screenings, classes and in the future will feature vendor presentations.

“Shoppers these days want to know more and are faced with an increasingly confusing environment around navigating claims like ’natural‘ and ’plant based,’” said Minor. “We feel we have a responsibility to help explain and clarify what best practices look like in making food choices. Our role as retailer is to help them on their healthy living journey by operating as guide and coach.”

The future of food retail?

Most satisfying in our conversations with Minor and others at Raley’s was their sense of commitment and passion about what ”changing the way the world eats one plate at a time” truly means and how that plays out when you’re inside the front door. The position Raley’s O-N-E Market takes is active not passive, expressing leadership rather than go figure it out for yourself.

No one is going to beat Amazon on friction-free e-commerce, or Walmart on lower price. We have ample evidence that the middle market in grocery retail is a tough place to do business when the value proposition is based on location (getting weaker to defend) or all-things-to-all-people assortment (not a real strength anymore).

We believe the platform of highly differentiated and focused concept – especially in the Health & Wellness space – gives consumers an experience and another reason to shop brick and mortar. This is critical to food retail success and means leaning in fully to a commitment that places the customer at the center of strategic planning.

This insight must be informed by a crystal-clear higher purpose that translates into on-the-ground strategic decisions which defines and manifests in every aspect of store operation.

Human beings are emotional creatures. People are not fact-based analytical decision-making machines. We know the human sub-conscious plays a far more important role in helping guide actions and decisions than the cognitive side, yet most retailers operate on the “rational” channel.

When it’s heart-over-head, the grocery store shopping experience is enhanced by strategies that acknowledge our deep love affair with food, interesting culinary experiences and the prevailing desire for a healthy lifestyle.

• Disney knows how to create the magic in their kingdom. Imagine a food store with the same heart and passion for food experience and how that could play out in a store setting.

Raley’s recognizes the growing importance of grocery foodservice experiences especially at a time when going to restaurants is less desirable. Yet the magic of environment and ambiance are no less important here than at the corner bistro. “Raley’s O-N-E Market includes McKinney Loft – a tribute to Steve McKinney, skier, mountaineer and local icon. The loft features plenty of seating, a beer and wine bar, bar bites, and an outdoor fireplace and large TV screens,” explains Minor.

At the crux of Raley’s likely success with Raley’s O-N-E Market is its higher purpose. This is harder to define correctly and to optimize fully. For that reason, Emergent has built a four-step plan to guide higher purpose development. You can download a copy here.

If would like to discuss this in the context of your business and its future, please use this link to start a conversation.

For more food trends, consumer insight and communications strategy follow us on Twitter @EmergentLiving.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Food and beverage brands can take the lead as coach and guide

Your brand’s best opportunity for real engagement occurs when consumer need and your expertise overlap at precisely the right moment. And that moment is now.  It’s here, we’re in it. You have an opportunity to become a trusted partner, a useful resource, at a time when families are running out of menu ideas and kitchen fatigue is setting in.

• We’ll provide guidance on what to do, but first let’s take a look at what’s happening right now that creates this important opening for brands to build a more meaningful relationship with their users.

Consumer research continues to reinforce a significant shift, and likely permanent change, to an increase in at-home meal preparation occasions. The pandemic has prompted millions of families to get back into the kitchen full time. Working and schooling from home makes this a three meal a day duty. Some are new to this culinary endeavor and the learning curve is upon them. Cooking veterans consistently have to devote more time and attention to laboring over the stove.

According to a recent “COVID-19 Impact on Eating” report from The Hartman Group, 93% of dinner eating occasions are prepared and consumed at home.

• Even more amazing is the surge in lunch; 81% of occasions are occurring at home.

• Dinner menus involving ‘heavy’ preparation are at 31% of occasions, up 9 points from a year ago, while lunch occasions requiring moderate preparation have jumped to 33%, up 14 points from 2019.

In sum, despite the dramatic falloff of restaurant eating events, Americans are choosing to cook rather than outsource their meals. The research also reveals that 33% of all eating and drinking occasions are in service of health and wellbeing objectives – no surprise given the elevated importance of health and wellness. People are purposefully making an effort to protect their immune systems while the pandemic continues to ravage the nation.

Kitchen burnout is a reality and it has arrived

Food, beverage and food retail brands are afforded an extraordinary opportunity to become a useful coach and resource for home cooks. This comes at a time when they not only need inspiration and instruction but personal encouragement and emotional support as well.

Considering people are spending more time at home, menu creation has taken on a new significance and importance for families. Previous studies of home cook behaviors determined that most have a repertoire of roughly 10 dishes they know well and will continue to keep in rotation. However, after months and months of repeat visits, menu weariness sets in as home chefs run out of ways to freshen their tried and true dishes.

Reinforcing the permanent home cooking shift is health and wellness aspirations

Alongside this cooking-from-necessity condition is a growing appreciation that home cooked meals are generally:

• Healthier, more nutritious
• Portion controlled
• Completely customized
• Convenient to scheduling
• Safer
• And can be functionally curated to support health and wellness objectives

Being relevant to consumers is the precursor to creating authentic engagement opportunities with them. What consumers are experiencing now puts your brand in an enviable position to be useful and helpful at a moment of real need.

“During this worrisome time many have re-discovered latent cooking expertise and more than a few have developed newfound culinary skills, but also most are feeling a bit weary and are reporting varying degrees of family meal fatigue. Our meal preparation muscles are tired, tested and stretched. Still we know the nutritional and family functioning benefits are out there awaiting us,” wrote David Fikes in a recent The Food Industry Association report ahead of their annual National Family Meals Month promotion in September.

“In other words, now, when we’re tired, we most need the encouraging words of an inspiring trainer urging us to push beyond the fatigue, work through the discomfort and get reenergized about family meals, if we wish to reap the solid benefits they hold for us in terms of health, happiness and well-being,” he said.

Perfect moment for the most effective brand content strategy

Storytelling is best served when proper roles are recognized and respected. Consumers want and need to be the heroes of their own life journeys. The brand’s optimal function in this scenario is as coach and guide. That’s precisely what is required here. Your ability to step in with emotional support, inspirational culinary ideas and guidance on preparation skills and innovative cooking techniques will help consumers save time and avoid mistakes.

• Your goal is to make the home chef more successful and comfortable in their kitchen-centric calling.

How to optimize this moment for connection and relationship building

Empathetic voice

Now is the time to put the brand ‘in league’ with the consumer by acknowledging the frustrations and burnout they may be feeling after months of constant meal preparation. It gets tough after the entire family is around the dining room table nearly seven days a week for months with no end in sight.

Food is an emotional category

Food consumption is enjoyable, social, indulgent, and can be transformational. This isn’t just about skills and cooking temperatures, it’s also about the table, experimentation, creativity and taste experiences.

Keep it simple

People literally run away from complexity and communication that taxes their brains. People are hardwired to avoid burning mental calories, so ideas and menus need to be presented simply, clearly with an eye towards simplifying what people must tackle in the kitchen.

Video and webinar are the right mediums

Harness the incredible capability of video to marry instructional or emotive words with pictures to amp the entertainment value. This will help people better understand through visual demonstration what they should be doing to bring great food to life.

Credible experts can help

Chef voices can elevate the conversation and add viewer interest to what you produce. As we said earlier, people now see food as a direct channel to improving their own health and wellbeing. Outside experts in nutrition and wellness add more authority to what your presenting. People are more likely to respect credentialed third-parties than in-house voices.

Social proof and trust creation

Consumers love to hear from other consumers. Employ your social channels to engage the community in sharing their own culinary content, recipes and ideas. People are far more likely to engage their peers before they’ll accept the assertions and claims brands make.

Transparency

Consider virtual farm visits with your suppliers and an opportunity to hear the personal stories of the families who create the ingredients you use. This serves as a transparency mechanism where customers get to see first-hand how your ingredients are sourced and then how your recipes are created.

Don’t wait

Now is the time to create a content calendar and begin operating in service of your customers during their time of need. With work-at-home looking like an ongoing condition and schooling- from-home likely to occur for many young people in the fall, kitchen and menu burnout isn’t going away any time soon.

This is a time for experimentation and openness to trying new flavors and cuisines. With the tried and true dishes most home cooks repeat losing their luster, people are gravitating to new experiences. In light of this condition, they need the guidance and expertise you can provide to bring new food ideas to the table.

Need help creating and building a strong culinary content calendar and fresh creative assets optimally messaged to engage home cooks in the right way? We can help! Let’s discuss your needs in greater detail.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

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