Progressive Grocer Product

WIN 2015

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2 2 Progressive Grocer Products Showcase / Winter 2015 PERISHABLES "Real" Growth Perimeter categories continue to be strong. According to Chicago's IRI, the latest 52 weeks reported 4.6 percent dollar growth and 0.8 percent for pounds in the perimeter. However, the growth rate is an indicator that real growth is beginning to accelerate rather than relying on price increases – the perimeter grew at a 4.2 percent rate, according to IRI/FreshLook data for the 52 weeks ended Aug. 9, 2015. Driving growth A number of factors continue to contribute to growth in the perimeter, which comprises primarily fresh meat, poultry and fsh, produce, and the deli and prepared foods. Dairy certainly also contributes signifcantly to trafc in the perimeter as a long-standing section chock full of staples for nearly all families. For fresh proteins, in particular, dollars have increased. Fresh meat and poultry dollars went up 5.9 percent allowing the two subcategories to account for 35 percent of total perimeter sales, according to IRI/FreshLook data compared with the same period a year ago. Pounds are down 1.5 percent for the latest 52 weeks, IRI/FreshLook data show, however, pounds were up 3.4 percent for the latest 13 weeks. Protein-rich diets popular today continue to catalyze fresh proteins, especially as retailers set out to help shoppers with meal solutions incorporating these subcategories in easy, cost- efective ways. Produce makes up 44 percent of perimeter dollar sales, IRI/FreshLook data show, and also continues to grow as consumers focus on healthy, fresh, clean eating. Total produce was up 2.7 percent in dollars and 1.5 percent in volume (pounds) for the latest 52 weeks, according to IRI/ FreshLook. Specifcally in the latest 13 weeks, growth in dollars was up 2.9 percent and pounds up a notable 4.6 percent. And yet while shoppers want fresh and clean eating, they often want – and need – the convenience of the perimeter, too. Deli prep makes up only 7 percent of the total perimeter, but has commanded a lot of attention from retailers looking to diferentiate, and shoppers looking to fnd easy and fresh meal solutions. Dollar and volume in pounds have both grown, up 8.4 percent and 8.6 percent, respectively. MerchanDising Matters Home to so many perishables, promotions in the perimeter lean heavily toward price promotion. BOGOs wouldn't bode well given shelf-life concerns and percentages of just don't have as much appeal, likely given that many products sell based on weight and so pricing is so variable. According to Market Track, Chicago, perishables are promoted more with price points than any other type of ofers. Dairy was the most promoted category this year based on trackable promotional data for 2015, with just slightly less than 23 percent of promotions. Meat followed closely after dairy, accounting for 20.9 percent of perishables promotions. PGPS n their quests to eat clean, be healthy, do some at-home cooking and entertaining, but also have the convenience of prepared foods, shoppers spend more and more time in the perimeter seeking "real," less processed food items for themselves and their families. and as a result, many perimeter categories continue to grow, reporting "real" growth spurred not only by price increases, but by true dollar and volume increases. Source: Market Track, Chicago, promotional data 2015 73.4% Price Point, X-For, 22.6% Save $X, 1.6% BOGO, 1.7% Other, 0.4% Save X%, 0.3% Perishables Offer Tactics Share of Promotions % % %

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