Unlocking Total Store and Omnichannel Success with Nonfoods

By: Tom Duffy, Senior Advisor, Nonfoods Community Development, FMI

Nonfoods play a critical, yet often underestimated, role in grocery retail. While fresh and center-store categories command attention, nonfoods at grocery stores account for 8% ($253 billion) of the U.S. nonfoods market, according to The Power of Nonfoods at Retail 2024. Clearly, nonfoods at grocery retail is a growth opportunity for food retailers, but challenges remain. Here are some ways to connect the dots for total store success with nonfoods.

Omnichannel Retail and the Changing Consumer Journey

According to FMI and NIQ’s Digital Engagement Transforms Grocery Shopping report, 55% of consumers make direct purchases from social media or live-stream platforms for grocery and household items. If you consider this from a nonfoods in grocery retail perspective, there is a real opportunity here.  

Picture this—scrolling through your Instagram feed, and you stop to watch a video of an impressive food-chopping tool. It reminds you of the old infomercials on TV, but it’s classier and more convenient. Intrigued, you click the buy now link, and you’re taken to your primary grocery store to view the product details. While you’re at it, you add some tomatoes and carrots to your cart, so you have some items to test out your new kitchen gadget. With 52% of general merchandise purchases considered impulse buys, nonfoods at grocery stores are the perfect tool to bridge the digital divide, especially using social media.

Trading Partner Planning from the Foundation to Innovation

To connect the dots, collaboration between retailers and manufacturers is needed to strengthen decision-making. Industry leaders can move beyond foundational practices and embrace continuous innovation, which is essential to success for nonfoods in grocery retail.

To dive deeper into nonfood opportunities and collaboration opportunities, FMI has teamed up with retailmediaIQ for an upcoming digital seminar featuring several nonfoods industry leaders. The discussion will look at nonfoods opportunities from all angles including:

• Emerging nonfoods categories.
• Trip conversions.
• Digital shoppers.
• Health and well-being solutions.
• A food retailer perspective on nonfoods opportunities.

The digital seminar is the perfect precursor to FMI’s Nonfoods Forum.

• Register: April 8 Digital Seminar: Connecting the Dots for Total Store Success – A free online event exploring nonfoods’ role in total store performance.

• Register: May 13-15 Nonfoods Forum—A deeper, in-person discussion of strategies for nonfoods growth and integration.