The Low-Carb Train Has Left The Station
While low-carb is still a popular diet approach, low-carb stores are headed downhill.  The number of low-carb dieters has dropped by about 30% since January.  Some low-carb manufacturers have reported sales declines of 50%.  As national food producers like Frito-Lay enter the fray through traditional grocery store and convenience store distribution, standalone low-carb stores featuring products from smaller producers are feeling the heat.

Our view:  If you already own a low-carb business, you've got two options.  1) Maintain your low-carb focus, as many customers will continue to choose low-carb for the foreseeable future.  Watch your sales closely, however, and have your exit strategy ready if the bottom drops out of your market.  2) Broaden your pitch beyond low-carb.  The new USDA food guidelines will emphasize total calorie consumption, so consider expanding to low-calorie, low-fat, "nutriceuticals", etc. 

 

Now, take a second look at your current marketing and promotion.  Focus on inexpensive and highly-targeted marketing strategies.  For example, consider placing flyers in bestseller diet books at local bookstores.  Staff a sampling booth at local festivals.  If you're in a high-traffic location, sample in front of your store.  Invite a local dietician who's low-carb friendly to lead a special session and invite your best customers. Offer bundles of products at a discount to increase the average purchase and increase consumer exposure to different products.  Network to local weight-loss centers with a compatible focus.  Introduce a frequent-shopper program.  Offer refreshments for parent-teacher association meetings and similar events.

 

We hope our final point is obvious:  if you're thinking about opening a low-carb store, forget it.  This train has left the station.