Supermarket Perimeter - October 2024 - 19

to FMI. Fresh foods or perimeter departments are top of mind for
enhancing store differentiation. The food industry is increasing
investments in fresh and working to overcome hurdles.
Food retailers are actively looking to expand space for various fresh
or perimeter departments in the next two years. Some food retailers
expect to increase their labor allocation in foodservice and specialty
fresh (such as in-store butchers, " produce butchers, " and cheese
mongers). An average of 41% of food retail dollars in total online sales
were generated in 2023 by fresh or
perimeter departments. Meanwhile,
meat and produce departments are
the fresh leaders in sales per labor
hour. The report spotlights these
issues based on findings from the
association's Speaks research.
Consumer trends including
DOLLAR SALES,
change vs 4 years ago
Meat
$86B, +25.0%
Produce
$76B, +22.2%
Deli/foodservice
$46B, +28.4%
Bakery
$43B, +33.7%
Seafood
$18.8B, +26.2%
convenience, health and well-being
and local are influencing food retailer
and supplier strategies in fresh and
other parts of their businesses.
The food industry is also strongly
committed to maintaining and
enhancing food and product safety.
A majority of food retailers rely on
external food safety and certification
programs to train their associates.
FMI consumer research finds that
shoppers continue to have a high
level of trust in their grocery stores
to ensure the food they purchase is safe. Retailers are also working to
enhance in-store shopping with foodservice, private brands and online
fulfilment slated for more space. Leaders are pursuing experimentation
in store development and eyeing local sourcing opportunities.
Food retailers are actively looking to expand space for various fresh
or perimeter departments in the next two years. This includes additional
space for fresh prepared foods, particularly grab-and-go, and fresh
produce - with those space expansion plans just slightly lower than a
year ago. These findings and the retailer comments below underscore
how fresh is responding to convenience as a key consumer trend.
" Fresh departments are driving many of the most effective retailer
product differentiation strategies, " according to the report.
Price pressures
Price is growing in importance among consumers, influencing their
decisions on where to shop for fresh. For food retailers, promotions, price
comparisons, and channel-shifting are key areas of emphasis for shoppers.
Recent consumer-focused reports on fresh categories underscore
how much shoppers are focused on price.
Price is surging in importance, for instance, among seafood
consumers and influencing their decisions on where to shop for this
category, according to FMI's The Power of Seafood report.
Produce shoppers are also focused on price and promotions
in combination with ripeness and appearance, as detailed in the
association's Power of Produce report.
supermarketperimeter.com
OCTOBER 2024 - 19
Retail
81%
57%
20%
Percentage of retailers
who said they're allocating
more space in their
fresh departments, by
department:
Grab-and-go selection 79%
Produce 44%
Chef made-to-order 29%
Self-serve bars/buffets 26%
Bakery 25%
Meat 22%
Seafood 14%
In-store dining 13%
41%
of food retail
dollars in
total online sales were
generated by fresh
departments in 2023.
Online sales by category:
Dairy 12%
Produce 11%
Meat 10%
Deli 4%
Seafood 2%
In-store bakery 1%
Fresh prepared 1%
STRATEGIES
Retailers are striving to enhance
in-store shopping with foodservice,
private brands, and online
fulfillment slated for more space.
of retailers are experimenting with new in-store
technologies to enhance customer experiences.
are increasing local item
SKU allocation.
are increasing labor allocation for
in-store specialty departments.
Percentage of retailers
who said they plan to
increase staffing in specific
perimeter departments:
Foodservice 30%
Specialty help 20%
Trained/certified chefs 23%
In-store dining 15%
Bakers/pastry chefs 17%
http://www.supermarketperimeter.com
Supermarket Perimeter - October 2024

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