Supermarket Perimeter - May 2022 - 18

39% of
consumers
view retail
foodservice as
a substitute
for a both a
home-cooked
meal and a
restaurant
meal.
FMI
59% expect to
cook as many
FMI
32% have had
grocery
deli-prepared
items
delivered.
FMI
52% are
interested in
buying heated
pre-packaged
foods that
previously
were on hot
self-serve
buffets and
bars.
FMI
18 - MAY 2022
meals at home
as they do now.
GOING HYBRID
Andrew Moberly, director of category solutions for Stamford, Conn.-based consultancy Daymon,
lays out some of the ways in which retailers can integrate established practices with new ideas in the
post-pandemic instore deli of the future:
Reimagining the merchandising space: Shoppers' acceptance of using hot and cold bars continues
to struggle as evidenced by year over year sales declines of 11%, so some retailers are converting that
space to staff-served counters and pre-packaged displays. This is also an opportunity for retailers to
feature their private brand items in these displays, offering exclusive flavors and items that resonate
throughout the store, and recapture the momentum private brands were creating pre-pandemic.
Break down department " barriers " : Shoppers don't think in terms of departments or categories; they
are looking for meal solutions. Retailers who recognize this can create co-merchandising destinations
that combine prepared foods with fresh and center-store items to create " some assembly required "
meal kits. Variety plays an even more vital role than before the pandemic, as shoppers suffer from meal
prep fatigue and are looking for inspiration.
Omnichannel presence and technology: Technology has become more critical in this space, as the
modern in-store deli competes with food service and online food delivery options. The best-in-class
grocers are launching their own apps where shoppers can order and either have the products delivered
or ready for pickup. Other retailers are tying this department into their grocery order, delivery, and
pickup platforms that became necessary during the pandemic.
popular. Fifty-five percent of consumers said they were
doing hybrid. "
Charcuterie trays, platters and other deli options have
also become more popular, giving retailers a chance to
compensate for income lost to lower salad bar, hot bar
and other sales affected by the pandemic. And many of
these changes will remain even if a day comes when
COVID is in the rearview mirror for good, Stein said.
And catering. Many consumers are finding they can
use their existing supermarkets for their catering needs,
at a price that's typically much more affordable than a
traditional caterer, Stein said.
" People learned to eat at home and enjoy it. Yes, they'll
say they have cooking fatigue, but they've enjoyed
getting families together. Nostalgia is very popular right
now. In times of stress nostalgia really calms you. "
Americans also got used to spending less money on
food. Inflation is affecting food prices everywhere, but as
Stein points out, it's still a lot cheaper to eat at home than
in a restaurant.
" The first time you go back to a restaurant, you look at
the check and think, 'I can feed my whole family for the
cost of one person here,' " he said.
People with restaurant sticker shock will increasingly
look to retail foodservice to find more affordable options
for their " hybrid " dinners and other needs, and retailers
supermarketperimeter.com
would do well to diversify their options as much as
possible, Stein said.
New look
With the move towards more prepackaged items has
come an increase in the use of merchandisers tailored
for them, Proctor said.
Over the past year, for example, multi-deck, selfservice
shop-around modular islands have been popular
display cases for merchandising prepackaged items,
thanks in large part to the versatility of case depths,
lengths and shelf depths, and the option of incorporating
refrigerated, hot or dry merchandising areas around the
islands.
COVID hit instore delis hard, but it also has given
retailers the opportunity to press the reset button
and think of ways of adding lasting value to their
departments, Proctor said.
" Reimaging convenience and enhancing the
prepared foods departments provides food retailers an
opportunity to rethink the shopping experience and
meet consumers' needs, " she said. " For instance, we are
now seeing a trend with new food bar orders. Food bars
are not going away, but rather being reevaluated with
how they are merchandised and smaller footprints for
new bars are being ordered. "

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