Restructuring Grocery Stores: Innovations at the Store's Edge in Dairy, Deli, and Bakery Departments
In a bid to cater to evolving consumer preferences, grocery stores are focusing on creating a more meal-centric shopping experience. According to the Progressive Grocer's 76th Consumer Expenditures Study, more than two-thirds of shoppers have recently purchased prepared foods, with hot entrees being the most popular category.
Cross-merchandising is at the heart of this strategy. Produce is being promoted alongside deli and prepared foods to encourage easy meal combinations and improve shopper convenience. For instance, salad kits are now placed near deli meats and packaged foods, inspiring quick meal solutions.
Prepared and ready-to-cook protein options, such as marinated meats, are also being introduced to deliver convenience without compromising quality. These products, like ready-in-minutes beef products, are finding their place alongside deli and produce departments, appealing to shoppers seeking speed and flavor at home.
The shift towards health-conscious, sustainable options is also evident. Plant-based and alternative protein products are being integrated within prepared food offerings in the dairy, deli, and bakery sections. This includes plant-based dairy and deli items, broadening customer choice and attracting new demographics.
Seasonal merchandising strategies are being adopted as well. For example, lighter fare and fresh produce are being spotlighted in summer to align with shopper preferences for easy, healthy meals.
Cross-functional collaboration from procurement through logistics to merchandising is crucial for ensuring quality, freshness, and optimal product availability on shelves, particularly for fresh and prepared food categories like dairy, deli, and bakery.
Breakfast items, including croissants, doughnuts, and pastries, have seen growth in sales, particularly during April. Rick Stein, VP of fresh foods at FMI - The Food Industry Association, notes that retailers and suppliers aim to provide shoppers with value beyond just price and quality, offering experience, relevance, and convenience.
Some retailers are using paper/digital coupons instead of physically moving merchandise to overcome operational hurdles in such displays. For instance, placing whipped cream next to or near pies can drive a bigger ring, with even more households purchasing whipped cream with their pie, or others opting for a larger size.
The focus is on providing solutions across dayparts and occasions, including prepared or nearly prepared meals and offerings suitable for recipes and snacking. Retailers like SpartanNash are working to deliver meal solutions, including at its recently refreshed Family Fare stores in Michigan.
The perimeter of modern grocery stores is being softened to provide a more rounded approach to meeting shopper needs. The Fresh Market store in Algonquin, Ill., presents ready-to-cook meal solutions and pre-made dips and spreads in high-traffic areas like the deli, bakery, and dairy sections.
Success in these areas requires compelling presentation, not just a random assortment of items. Anne-Marie Roerink, principal at 210 Analytics, emphasizes this point, stating that success in the increasingly heated battle for the consumer food dollar depends on it.
The latest report from 210 Analytics reveals that charcuterie is a popular opportunity for shoppers who are entertaining or looking for easy-to-assemble meal components. The NFRA study shows how nutrition, convenience, and family appeal are redefining the trusted refrigerated foods section.
Co- and cross-purchase data provides insight into many questions in food retailing, such as the high cross-purchase between eggs and bacon, sliced cheese, hamburgers and buns, or pie and whipped cream. This data can help retailers optimize their merchandising strategies to drive sales and enhance the shopper experience.
Shoppers are increasingly seeking convenience and speed while maintaining a health-conscious lifestyle, leading to a surge in the popularity of prepared and ready-to-cook food-and-drink options. To cater to this demand, grocery stores are integrating plant-based and alternative protein products into their prepared food offerings across dairy, deli, and bakery sections.
Market research indicates that cross-functional collaboration is crucial for ensuring quality, freshness, and optimal product availability, particularly for home-and-garden items like fresh produce and prepared meals. Retailers are using this collaboration to deliver meal solutions across different dayparts and occasions, including ready-to-eat, easy-to-assemble meals, and snack items.
