Retail Shopping's Evolving Online Presence Poses Many Challenges, Opportunities for Beef IndustryFri, 30 Mar 2018 11:26:24 CDT
Back in January, Don Close of Rabo AgriFinance, released a report on the changing landscape of retail shopping and how its evolution from brick and mortar storefronts to online venues is shaping and influencing the way the beef industry markets its products. Since the release of that report, Close told Radio Oklahoma Ag Network Farm Director Ron Hays recently during the Texas and Southwest Cattle Raisers Association Convention in Fort Worth, that the rate of activity at which retail companies are launching online and delivery services or merging to incorporate similar amenities for their customers has rapidly accelerated.
“Target has bought one of the meal delivery services… You’ve got Walmart going in with the home delivery piece, now… HEB Grocery announced the meal kits for kids…,” Close rambled off. “If anything, that whole thing is accelerating so fast and it’s so fluid that it’s really hard to say what the final outcome is.”
Close points to research that show Millennials and beginning families with a number of small children have typically been the first to adopt these new trends. But, the latest studies indicate that the level of adoption goes much deeper into the age demographic than previously thought. Close says practically everyone across the age spectrum has widely accepted these new services. While Close worries some of these options, such as the home delivered meal kits, are by nature exclusive of beef given their price sensitivity - he says there is also some great opportunities that can be taken advantage of as well.
“I think the meal kits can offer beef to non-beef users or light beef users because they’re seeing those high-glossy photos of those finished items every week,” he said. “The other area I think is the key opportunity is on price point - I think it would give us an avenue to better utilize a lot of the underutilized cuts, a lot of the new cuts from the chuck that aren’t really being utilized today. Any improvement we see there would be a direct passthrough to cut out values.”
Listen to Close and Hays discuss the challenges and opportunities the changing retail landscape poses for the beef industry, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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