By: Tom Duffy, Senior Advisor, Nonfoods Community Development, FMI
Blending food and nonfoods categories isn't just a trend in today's grocery market — it's a smart strategy. As consumer preferences evolve, retailers can tap into new growth opportunities by fully leveraging their nonfoods offerings. When food and nonfoods items are strategically combined, they boost sales and transform the shopping experience to be more engaging and convenient. Seamless integration drives sales and builds customer loyalty, setting the stage for sustained growth.
One crucial insight for retailers is understanding the power of gateway categories within nonfoods. These categories — household essentials, general merchandise health and beauty products and pet care items — attract shoppers and serve as critical engagement points. They consistently drive foot traffic and encourage repeat purchases. When these items are strategically placed alongside food products, they enhance the shopping experience, leading to larger basket sizes and more frequent visits.
Optimizing nonfoods offerings requires a data-driven approach. Understanding which categories resonate most with your customers and how they interact with these products is key to refining your merchandising strategy. Tailoring assortments to meet the specific needs of your customer base ensures that your nonfoods categories complement your food offerings and elevate your store's overall value.
The FMI Research and Insights team's recent Power of Nonfoods study reveals that nonfoods are a significant opportunity for driving incremental growth in total store sales. The study emphasizes the frequency of nonfoods in consumer shopping habits and examines the factors influencing place of purchase. It defines the key factors of importance for consumers when grocery shopping, and demonstrates that consumers are engaged with, and rely on retailers to accommodate their needs.
Moreover, the study underscores the need for key gateway categories like household essentials, health and beauty, and pet care as critical in attracting customers and boosting profitability. By offering a well-curated selection of nonfoods products, you not only provide customers with a one-stop shopping experience but also differentiate your brand in a competitive market, fostering loyalty and opening new revenue streams.
To help retailers navigate this dynamic landscape, FMI is hosting two free digital seminar series focused on nonfoods. The two digital seminars will offer valuable insights into the latest trends, consumer behaviors and strategies for optimizing nonfoods offerings. Don't miss this opportunity to unlock growth in your stores — register today and discover how to transform your nonfoods categories into powerful drivers of success.
Industry Topics address your specific area of expertise with resources, reports, events and more.
Our Research covers consumer behavior and retail operation benchmarks so you can make informed business decisions.
Events and Education including online and in-person help you advance your food retail career.
Food Safety training, resources and guidance that help you create a company food safety culture.
Government Affairs work — federal and state — on the latest food industry policy, regulatory and legislative issues.
Get Involved. From industry awards to newsletters and committees, these resources help you take advantage of your membership.
Best practices, guidance documents, infographics, signage and more for the food industry on the COVID-19 pandemic.
