When is a health store not a health store? It’s the slightly surprising question I’ve been asking myself after reading the findings of a new survey by Health Stores Ireland.

For its survey, Health Stores Ireland polled 220 committed health food shoppers and asked them a range of questions on everything from monthly spend to personal health goals, emerging health food categories to preferred shopping technologies. The findings provide valuable insights into health store shoppers’ preferences and how retailers can maximise the importunity of emerging trends. 

But there was one particular finding that stood out for Health Stores Ireland chair, Leroy Smith. The survey showed that participants – remember, all health store regulars – spent 60% more in lifestyle grocery/delicatessen outlets than in local health stores (€247 versus €158, out of an average monthly €1,000 household spend across all relevant channels). Smith told Health Food Business: “The level of spend via lifestyle grocery/delicatessen outlets is a significant finding and suggests that traditional health stores may need to adapt to changing consumer preferences. By investing in experiential retail formats and developing online channels retailers can remain competitive and meet the evolving needs of health conscious consumers”.  

The survey doesn’t tell us which products participants were buying from lifestyle grocery stores, so we don’t know the extent to which these purchases were taking directly from health stores (or about product overlap). Also, lifestyle grocery/delicatessen and health stores are different retail propositions, so care is needed in comparing the performance of the retail types. Even so, the overlap of products and product categories between health stores and lifestyle grocery/delicatessen can be significant. Health Stores Ireland’s national adviser, Alan McGrath, suspects lifestyle retailers are advantaged by “not being confined by expectation, and having freedom to cherry-pick from traditional health and wholefood store lines”.

During the time I was editor of Natural Products News we had regular discussions about which retailers qualified for addition to the magazine’s ‘controlled readership’ list (qualification essentially being that a given retailer represented a sufficiently valuable customer – or potential customer – to NPN’s advertisers). We were aware that there were retailers who sold anything between 30-80% of the products that would be typically stocked by a health store, but who didn’t identify as a health food store. 

“There has been a steady blurring of the lines between health stores and lifestyle grocery/deli, and the emergence of retailers that don’t easily fit a particular description”

There has been a steady blurring of the lines between health stores and lifestyle grocery/deli, and the emergence of retailers that don’t easily fit a particular description. This latter group of retailers might be best described as values-led grocery and often have a strong emphasis on seasonality, provenance and localism. They are often naturally good at experiential retail, of the type Leroy Smith was talking about, and effective at communicating their values. There is a buzz and a shared passion among these retailers for what they are doing and what they stand for. A new and growing UK network of ethical food retailers called Better Food Traders is currently working hard to spread the message about the need for “alternative food retail solutions”.

Independent food retail is constantly shifting ground. Retailers sometimes start in one place and cross over into another. After the initial growth and excitement around zero-waste/refill retailers, some stores began to add in grocery and food lines from familiar natural and organic brands, along with ethical gift and homewares – in the process, getting closer to a natural products store format. At the same time, health stores – the original refill champions – began re-introducing or expanding their refill bays as consumer awareness about excess packaging was rising quickly.  

Close to where I live in Tunbridge Wells, an established artisan bakery business recently took over an adjoining retail unit and opened a cafe. But it has also started selling grocery. So, as well as stopping by for coffee I now pick up organic porridge oats, flour, dried and canned pulses and soup – from brands I like to support – in an environment that feels inviting and celebratory. Previously I bought these in one of the two independent health stores in the town, both now sadly closed. 

“One legacy brand owner I spoke to recently told me that the independent natural products retail scene had ‘atomised’ over the last decade”

One legacy brand owner I spoke to recently told me that the independent natural products retail scene had “atomised” over the last decade. Health store owners themselves report that there is less camaraderie in the independent health food sector, less sense of ‘togetherness’ – so the value of face to face industry events is higher than ever (witness solid retailer turnouts at recent NHT Sumit events in Bristol and Dublin). Retailer trade associations also play a vital role supporting retail businesses, providing networking and educational opportunities and lobbying Government on behalf of independents.  

As both Health Stores UK and Health Stores Ireland report, many stronger-performing health stores have evolved effectively and embraced those experiential formats – incorporating cafe areas, talks and workshops and compelling storytelling into the retail mix (of course, store size will limit the practicality of some of these).

Perhaps it doesn’t matter how individual stores define themselves. After all, the biggest asset independents have is that they are just that, independent, and are free to build a business around their own passions and values. And in many ways all these retailers are fellow travellers, as independent, community-based businesses. 

But we do know that health food stores struggle to reach beyond their traditional customer demographic, with health store shoppers making up just 5% of the adult population (Viridian research, 2023). It’s a perplexing statistic given that in multiple consumer surveys the percentage of people who declare that they want to be ‘healthier’ or ‘eat more healthily’ is consistently in the 65-85% range. Getting those wellness-motivated but stubbornly health store resistant consumers through the door is arguably the biggest opportunity the channel has.