Fresh foods have been key retail sales drivers for several years, and operators are responding by expanding and refining their assortments of these items. In fact, a significant number of retailers in the latest Supermarket News Fresh Foods Trends Survey said they planned to increase their perishables assortments this year, including 58% who said they planned to expand their prepared foods offerings and 52% who said they planned to expand their produce assortments.
Many retailers are also expanding the footprints of their fresh foods departments, including 28% who said they planned to devote more space to prepared foods. Operators also said they planned to devote more space to deli, bakery, and produce.
Operators Expand Their Fresh Foods Assortments
Survey cites opportunities in prepared foods, expanded fresh assortments.
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More than half of retailers and wholesalers said they expect sales gains in their fresh foods departments in the next 12 months.
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Supermarket operators face competition for their prepared foods sales on multiple fronts, including fast-casual restaurants, big-box and club stores, and convenience stores. Prepared foods also compete to a degree with the scratch cooking ingredients offered elsewhere in the store as consumers prepare more meals at home. Retailers said convenience was the biggest advantage that their competitors had when it comes to driving sales of prepared foods. Accordingly, they singled out grab-and-go prepared foods as the top strategy for competing with these other players, followed by pricing and promotions.
Strategies for Competing with Prepared Foods
Key Findings
Capture More Prepared-foods Sales With Convenience, Price
operators said grab-and-go offerings were the best way to battle the competition for prepared food and beverage sales.
Food Retailers Forecast Ongoing Growth in Perishables
54%
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31%
54%
INCREASE
15%
DECREASE
STAY THE SAME
More Than
6 in 10
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A Fresh Outlook
Retailer / Wholesalers' 12 Month
Planned Assortment Increases
Learn More About How Retailers Are Growing Their Fresh Department Sales