retail news in context, analysis with attitude

The Cincinnati Business Courier has a story saying that "subscribers to meal kit services are spending 6 percent less at supermarkets than they did before using the service, according to a new study by Atlanta-based credit and debit card spending analysis firm Cardlytics."

The story goes on to say that "Blue Apron, Hello Fresh and others are growing because of two huge trends: convenience and fresh, healthy food. They deliver recipes and all of the ingredients to customers for meals that feature fresh, high-quality options. Customers prepare the meal at home in a process that typically takes 30-45 minutes. Blue Apron meals typically cost $20 for a meal for two.

"It’s a growing force. Cardlytics found that consumer spending through meal services soared 311 percent last year compared with 2014."
KC's View:
Let's be clear. One of the reasons that there is so much growth in this segment is that it is new snd coming off a very small base. That's not to suggest, though, that this can be ignored. Far from it.

The impulses that are leading people to use these kinds of services have to be taken seriously and acted upon by so-called traditional retailers, who cannot afford to lose one percent of their businesses, much less six percent.