Progressive Grocer Product

Summer 2015

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3 2 Progressive Grocer Products Showcase / Summer 2015 PERISHABLES As a result, growth is evident in most sections of the perimeter, though with prices rising, often the growth is represented by dollars and not volume. The perimeter business is growing, but only on a dollars basis, according to data and analysis from Chicago-based IRI. The overall average price per pound increase is almost 6%, according to IRI/FreshLook, with the fresh meat and poultry department, specifically, reporting much higher price increases as beef and pork prices rose 15.7% and 11.5%, respectively. Some proteins are losing volume due to large price increases – consumers have somewhat recovered from recessionary ways, but value- focused shopping is still very prevalent. A common draw to the perimeter, produce attracts most shoppers and makes up 44% of perimeter dollar sales. With slight growth at 3.3%, according to IRI/FreshLook, and pounds flat, price increases can take responsibility for the growth. And while natural and organic have earned much attention in recent years as produce and products expand beyond specialty outlets to a more mainstream audience, the natural and organic market still is small but continues to grow in importance. Natural and organic only accounts for 5.7% of total perimeter dollars, according to IRI/FreshLook, but that's up from 5.1% a year ago. And overall natural and organic products in perimeter are growing at an 18% rate in dollars and 14.7% in volume/pounds. Dairy 24.1% Fresh Vegetables 11% Fresh Fruit 9.9%% Seafood 9.2% Deli 9.2% Poultry 5.9% Refrigerated Prepared Foods 1.7% Meat 27.7% Fresh Potatoes 1.4% Sub-category Share Source: ECRM All U.S. Retailers, Circulars Only, Effective Ad Block Count Perimeter business is growing • Up 4.6% on a dollars basis • Down 0.5% on pounds basis • Average price per lb. up 5.6% • Fresh Meat and Poultry make up 35% of total perimeter sales • Up 6.1% on dollars basis • Down 3.1% on pounds basis • Beef: Up 6.4% dollars Down 8% on pounds 15.7% price increase • Pork: Up 5.8% dollars Down 5.1% pounds 11.5% price increase • Chicken: Up 5.6% Up 1.7% pound increase 3.3% price increase Source: IRI/FreshLook - 52 weeks ended 4/19/15 and same period year ago; based on dollar sales percent change versus year ago; perimeter department Perimeter of Store ($132.5 billion) vS Center Store (total SaleS $347.9 billion)

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