Supermarket Perimeter - October 2020 - 10

C
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V
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S
D
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F ECOVERY
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Reviving the perimeter's biggest revenue stream
BY EMILY PARK

Hussmann
recommends multideck islands or mobile
cases to replace salad
and hot bars.

10 - OCTOBER 2020

SP_Oct20.indb 10

While most perimeter departments have seen increased dollar sales,
the instore deli has been struggling since the onset of the pandemic.
From July 5 to Aug. 16, the instore deli came in between 9% to 11%
under 2019 sales. Suffering the most has been the deli-prepared,
grocery foodservice category with sales losses falling between 19%
to 24% over the seven weeks leading up to Aug. 16. At its worst, the
category was 47% behind 2019 sales the week ending on April 5.
With COVID-19 expected to be the new norm for the foreseeable
future, retailers are left to figure out how to begin recovering lost sales
in what was once the most revenue-producing grocery category. In
2019 deli-prepared foods made up a $12.6 billion portion of the grocery
industry's revenue stream in the United States.

It's time to rethink salad and hot bars
Grocers are missing out on the largest amount of foodservice sales from
the closure of self-serve hot and cold bars. Hot and cold bars are a big
expense to place and a big expense to rip out, but they take up a lot of
space that for the foreseeable future is not being used to its greatest
advantage.
Some retailers have come up with a plan for the interim with
solutions that include turning the bars into coolers and warmers for
pre-packaged food or reopening the bars with an employee dishing,
packaging and sealing food customers order. Neither of those options
are necessarily perfect solutions - a portion of consumers are still
hesitant about ordering made-to-order foods over pre-packaged and as
Bridgeton, Mo.-based Hussmann Corporation's business development
manager Francie Jenks pointed out, using hot and cold bars to house
grab-and-go selections is less than ideal for presentation.
"The consensus is that it's going to be quite a while until there's a
vaccine for the virus, but people may still be gun-shy just because of
all of the common touch areas on self-service," Jenks said. "The other

HUSSMANN, KRISTINA BLOKHIN - STOCK.ADOBE.COM

A

fter months of unpredictability in sales projections for
upcoming weeks in most perimeter departments and
grocery categories, a pattern is starting to emerge that is
beginning to look like the 'new normal.'
From the week ending on July 28 to the week ending on Aug. 16 fresh
perimeter sales overall ranged from a consistent 10% to 13% above dollar
sales over the same time period in 2019, according to data collected by
IRI and analyzed by 210 Analytics.

www.supermarketperimeter.com

9/25/2020 9:13:33 AM


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Supermarket Perimeter - October 2020

Table of Contents for the Digital Edition of Supermarket Perimeter - October 2020

Supermarket Perimeter - October 2020 - 1
Supermarket Perimeter - October 2020 - 1
Supermarket Perimeter - October 2020 - 2
Supermarket Perimeter - October 2020 - 3
Supermarket Perimeter - October 2020 - 4
Supermarket Perimeter - October 2020 - 5
Supermarket Perimeter - October 2020 - 6
Supermarket Perimeter - October 2020 - 7
Supermarket Perimeter - October 2020 - 8
Supermarket Perimeter - October 2020 - 9
Supermarket Perimeter - October 2020 - 10
Supermarket Perimeter - October 2020 - 11
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