Progressive Grocer Independent

APR 2016

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Cover Story 16 | Progressive Grocer Independent | April 2016 Deli/Prepared Foods Departments new supply chains to provide what the consumer wants, namely fresh prepared foods. Embracing these trends will drive sales to continue to outperform other categories, but it also requires grocers to develop a strategic plan that spans cat- egories and departments. If retailers do this, they will have laid the foundation for the next generation of success, ac- cording to Rick Stein, VP fresh foods for Arlington, Va.-based FMI. Department of Differentiation Te perimeter departments are really the fulcrum point for diferentiation in retail, DuBois said, and successful retailers are bringing a new level of art to the departments. Tese departments provide opportunities for deeper and more engaging experiences with the customer. With these departments now the driving force of a successful supermarket, many retailers are devot- ing more space to them, he added. "Tere is a revolution happening in food retail," DuBois noted. "Te core of that revolution is fresh prepared foods." He cautioned, however, that more space doesn't equate to more sales; for instance, a bigger salad bar won't nec- essarily guarantee better sales. "Quality can beat quantity of space," DuBois pointed out. "What you're doing inside the space really matters." Supermarkets are now competing on the same level as restaurants when it comes to the consumer dollar for Fresh Prepared Sees Accelerated Growth Source: IRI FreshLook POS data, MULO, 52 weeks ending Nov. 29, 2015 2012 2013 2014 2015 Revenue $B $/Pound $8.5 $9.1 $9.9 $10.8 $4.88 $4.95 $5.05 $5.13 6.7% 7.4% 8.0% 9.8% % Growth FRESH FORMED AlwAys AvAilAble - BIRO Manufacturing Company, Marblehead, OH 43440-2099 USA 419-798-4451 Fax 419-798-9106 AlwAys AvAilAble 245RB-9-14 Md. Mini-32 Mixer Grinder Md. F2000N Food Former

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