Dive Brief:
- Seasons Kosher Supermarkets will open three new stores: Scarsdale, New York; Baltimore and Cleveland, according to Progressive Grocer. The Baltimore store will open in July followed by Scarsdale a month later. The Cleveland location will open in 2018.
- The chain’s most recent location is a 35,000-square-foot store in Clifton, New Jersey, that opened in 2016 with a larger footprint than its normal-sized store.
- Seasons Express is the only kosher grocery store in the U.S., open 24 hours every day but Saturday when all locations are closed to observe the Jewish Sabbath.
Dive Insight:
While the kosher market is not one that grocery stores give too much attention to, it’s a growing segment and one Seasons Kosher Supermarkets is capitalizing on. Bigger retailers might not invest in more kosher products because it doesn't have a large enough customer base to devote the time and money.
Jewish people comprise less than 2% of the American population, and only a small percentage follow Jewish dietary laws. A study by Mintel revealed more than 40% of the country’s new packaged food and beverage products in 2014 are labeled as being kosher. Shoppers are buying these foods and Seasons is making sure people can find them easier.
Niche stores have been rising in popularity for years, and analysts say that by carving out a certain segment, smaller retailers can do quite well compared to the bigger players. With more discount stores coming to fruition, it makes sense for a store specializing in an area such as kosher to build up its presence and offer something people can’t find anywhere else.
Similar to kosher stores, more locations catering to Hispanics have opened across the country. With the Hispanic population reaching 57 million in 2015, the large demographic has attracted the interest of bigger chains who have found it more profitable to carry more of these products or even open dedicated stores.
Winn-Dixie recently opened five Fresco Y Mas branded stores in South Florida, catering to Hispanic communities by offering authentic ingredients this demographic often can’t find in an average chain grocery store. H-Mart has been specializing in Asian grocery items for years, targeting geographic areas around the country where the customer base is looking for these specialty products. 99 Ranch Market is another supermarket chain focused on Asian-American products that has found success.
The success Seasons is having in kosher stores, and other retailers in the Hispanic population, shows retailers are finding there are pockets of untapped growth potential in the grocery industry.