Companies and Brands
Wegmans, Publix, Trader Joe's Big Winners in Supermarket Survey
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The key is no longer low pricing, fast checkout times or variety of offerings. The new top-of-mind consideration according to Consumer Reports is “fresh.” Of the 68 chains included in the survey, only three received top scores for freshness: Wegmans, The Fresh Market Inc. (NASDAQ: TFM) and Whole Foods Market Inc. (NASDAQ: WFM).
The magazine cited an observation by consumer research firm The Hartman Group:
For many Americans, food is the new medicine: We believe we can eat our way to good health. As a result, consumers have become increasingly savvy label readers, wary of preservatives, chemicals, and unpronounceable ingredients. It’s no surprise, then, that since 2007 the demand for minimally processed foods with shorter ingredients lists has risen significantly.
The emphasis on freshness is driven by younger consumers who have also turned away from fast-food restaurants like McDonald’s Corp. (NYSE: MCD) and favor slightly more expensive but higher-quality restaurants like Chipotle Mexican Grill Inc. (NYSE: CMG) and Panera Bread Co. (NASDAQ: PNRA).
Consumer Reports also noted the rise of supermarket take-out and dine-in food choices as alternatives to fast-food restaurants. Once again, the focus is on freshness and higher-quality ingredients.
Even the blizzard of cooking shows on TV gets a nod for increasing awareness of food. As one expert cited by Consumer Reports notes, “Once there was only Julia [Child]. Now entire networks are devoted to food. Food’s all around us.”
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