Supermarket Perimeter - May 2024 - 8

Instore deli
and bakery
fight inflation
with meal solutions,
other products
and services
By Andy Nelson
Getting the " and " right
I
nflation has had an impact on how all grocery retailers market and
merchandise their products, and the instore deli is no exception.
" We've had challenges this year with inflation, " said Abby Byers, vice president
of delicatessen operations for Hy-Vee.
Promotions have become more important than ever, Byers said. Hy-Vee's Perks
Pricing program, which saves shoppers money on hundreds of items throughout their
local Hy-Vee, also plays a big role in the deli in attracting value-minded consumers.
Another key player during inflationary times, she added, is private-label products.
" It's getting bigger play than it used to. The value perception is there. "
When it comes to particular items, Hy-Vee's delis are enjoying strong growth in presliced
deli meats and cheeses, Byers said.
And the retailer is noting an evolution in charcuterie and the instore deli's role in
meeting those changing needs.
" The trend for so long was boards, " Byers said. " Now folks are really starting to
explore different uses that go beyond just entertaining. They're incorporating it more
into everyday recipes. We're really seeing that continue to grow. "
Hy-Vee customers are also increasingly seeing not only charcuterie but specialty
cheese in general as a snacking option, and the retailer is responding accordingly,
Byers said.
Tapping into surging consumer demand for meal solutions from the fresh perimeter,
Hy-Vee's instore delis are evolving their fresh sandwich program into something
Deli-prepared foods generated $2.3 billion February and grew unit sales by 4.1%. Only
deli meat sales were unable to hold the line on unit sales, with a mild decrease of 1.8%.
Deli Sales
Department deli
Deli cheese
Deli entertaining
Deli meat
Deli prepared
8 - MAY 2024
February 2024
$ sales
$4.2B
$695M
$487M
$665M
$2.3B
Source: Circana, Total US, Integrated Fresh, MULO+, % growth versus year ago
supermarketperimeter.com
In 2024, the consumer lives in " the
world of and, " said 210 Analytics'
Anne-Marie Roerink. Price and
promotions are still super important,
she said. But they're not everything.
" For most items and meals, it's about
cost and nutrition, cost and taste, cost
and convenience, etc., " Roerink said.
Instore delis and bakeries that get the
" and " right are performing quite well,
she added.
Take specialty cheese. If cost were
the only thing that was important to
consumers, Roerink said, specialty
cheese sales wouldn't be so robust.
" Month after month, we see unit
and volume growth, as consumers
entertain at home and have moved
many special occasions to become
permanent at-home occasions. "
$ vs. YA Units vs. YA
+1.7%
-0.0%
+4.4%
-4.6%
+3.6%
Latest 52 weeks ending 2/25/2024
$ sales
+2.4% Department deli
+1.0% Deli cheese
+3.0% Deli entertaining
-1.8% Deli meat
+4.1% Deli prepared
$54.0B
$9.3B
$6.0B
$9.1B
$29.5B
$ vs. YA Units vs. YA
+3.3%
+1.5%
+3.7%
-1.2%
+5.3%
+0.9%
-0.3%
+0.9%
-3.0%
+2.6%
Hy-Vee
http://www.supermarketperimeter.com
Supermarket Perimeter - May 2024

Table of Contents for the Digital Edition of Supermarket Perimeter - May 2024
