Progressive Grocer Independent

APR 2016

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April 2016 | Defining the Independent Market | 15 Deli/Prepared Foods Departments P erimeter departments have undergone massive changes in the past decade. One of the departments undergoing the most change is the deli/ prepared foods department. In fact, for a lot of retailers, the department has actually split in two. "Ten years ago, we never thought about fresh prepared as separate from the deli; it was smaller than meat and cheese," said Chris DuBois, principal at Chicago-based IRI, during the recent "Top Trends in Fresh" webinar. "Now it's a completely diferent world. Given the rise of the grocerant, fresh prepared foods are surpassing deli products in store sales. By Katie Martin It's the fastest-growing department in the perim- eter, and also is bigger than deli meat and deli cheese combined. Tis rocket type of growth is not seen often." Most grocery category revenues grow on average 1 percent to 3 percent year over year. In 2015, the pe- rimeter departments grew 4.5 percent on average, and fresh prepared grew 9.8 percent, accounting for $10.8 billion in sales, according to IRI data. "Te power of what the U.S. SEPARATION of Deli and Fresh Prepared supermarket industry is doing here is nothing short of exceptional and amazing when you see these numbers," DuBois added. Food Marketing Institute (FMI) has identifed several trends that are spurring this growth. Consumers are demanding more transparency in regard to food, want more convenience and are more connected than ever. Tese trends have in turn caused the industry to fnd "There is a direct relationship between the ambiance of a foodservice area and loyalty to that banner." —Rick Stein, FMI

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