Progressive Grocer - October 2009 - (Page 14)

Front End Retail news and trends analysis TDLINX Market Snapshot Denver Top 10 supermarket operators in the Denver DMA, No. 18 in the U.S. Parent Company 1 2 3 4 5 6 7 8 9 10 Kroger Co./HQ Walmart Stores/HQ Safeway, Inc./HQ Target Corp. Albertson’s, LLC/HQ Whole Foods Market/HQ Natural Grocers Vitamin Cottage Sunflower Farmers Market, Inc. Nash Finch Co./HQ Supervalu, Inc./HQ Total Top 10 Total Market Banner/Name King Soopers/ City Market/ Smith’s Food & Drug Ownership/Operation King Soopers/Smith’s Food & Drug Walmart Supercenter Safeway, Inc./Denver Div. SuperTarget Center Albertson’s, LLC/Southwest Whole Foods Mkt/Rocky Mtn Reg./ Wild Oats Markets, Inc. Natural Grocers Vitamin Cottage Sunflower Farmers Market, Inc. Nash Finch Co./Corp. Stores Supervalu/Albertsons/InteMtn Store Count ACV ($000) Market Share Walmart Supercenter Safeway SuperTarget Center Albertsons Store Whole Foods/Wild Oats/ Ideal Market Vitamin Cottage Natural Grocers Sunflower Farmers Mkt/ Sunflower Market Avanza Supermarket/ Sunmart Foods Albertsons Store 116 41 98 17 21 16 19 8 6 2 344 459 $3,209,700 2,141,100 2,020,200 509,600 374,400 347,100 120,380 66,300 63,700 46,800 8,899,280 $9,446,788 34.0% 22.7 21.4 5.4 4.0 3.7 1.3 0.7 0.7 0.5 94.2 100.0% Top Five Chain Drug Stores Banner Walgreens Rite Aid Good Day Pharmacy The TDLinx Market Snapshot is based on Designated Market Areas, which are created by Nielsen Media Research and consist of all counties whose largest television viewing share is given to stations of that same market area. 1 2 3 4 Stores 111 16 Pharmaca Integrative Pharmacy United Drug Total Top Five Total Market 3 1 139 143 GROCEROnline Original research, profit guides, and not-to-be-missed events from Progressivegrocer.com. Deli Operations Review While deli retailers have good reason to be cautious, shoppers’ preferred pattern of sticking closer to home at mealtimes continues to Duking it Out hold much promise in the Deli for the deli section, which has made profound strides I promoting highmargin premium meats, higher-quality prepared meals and signature offerings. “Duking it Out in the Deli,” Progressive Grocer’s 2009 Deli Operations Review, is a threepage .pdf packed with 10 charts displaying exclusive PG research on such key topics as the effect of at-home eating of deli/prepared foods on dollar sales and unit volume, and the use of category management principles in the deli. Published June/July 2009. Fresh Food Progressive Grocer’s 2009 Deli Operations Review While deli retailers have good reason to be cautious, consumers’ preferred pattern of sticking closer to home at mealtimes continues to hold much promise for a department that has made profound strides promoting high-margin premium meats, higher-quality prepared meals, and signature offerings. Research by Debra Chanil Analysis by Meg Major PROGRESSIVE Bakery Operations Review Though profits remain elusive, the in-store bakery has been a major benefactor of the eatat-home mealtime trend. “Bakery Bucks up,” Bucks up Progresssive Grocer’s 2009 Bakery Operations A Review, is a threepage .pdf bursting with 11 charts, most illustrating exclusive PG research on such important issues as bakery production and reformulated products being sought by section managers. Published June/July 2009. Fresh Food Progressive Grocer’s 2009 Bakery Operations Review Annual Report 2009 Grocers have settled in to face the economic storm, armed with value propositions and focused on helping shoppers navigate uncertain economic shifts. Packed with information, retailer and expert insights, and exclusive Progressive Grocer research, the expanded 76th Annual Report of the Grocery Industry, “Opportunity Knocking,” offers indepth analysis of such crucial issues as shopper traffic, supplier relationships, operational trends and competitive threats, along with detailed 2008 supermarket sales figures and retailers’ expectations for the balance of 2009. Published May 1, 2009. This is a PDF file that is available for immediate download after purchase. Requires Adobe Acrobat Top Five Mass/Dollar Stores Banner Family Dollar Dollar Tree Dollar General Big Lots Target Total Top Five Total Market Stores 80 42 19 17 15 173 224 Bakery Bakery Performance Though profits remain elusive, the in-store bakery has been a major benefactor of the eat-at-home mealtime trend that’s pumped up both departmental dollars and volume. t was the best of times, it was the worst of times … Dickens’ description of the French Revolution also holds true for the average in-store deli department, whose gains as a result of the uptick in at-home eating during the past 12-month period have been largely blunted by consumer belt-tightening and higher wholesale costs, according to findings revealed in Progressive Grocer’s annual “state of the deli department” report. Indeed, while the 41 percent of supermarket service deli directors responding to PG’s annual survey collectively posted the lowest comparable-sales increases during the 12-month period ended March 31, 2009, an identical percentage of operators (41 percent) said their deli sales were on par with the prior year’s perDeli Sales Change in Past 12 Months (Ending March 2009) formance, and the remaining 18 percent reported decreased sales. Compiled from direct input by a cross-section of retail deli executives surveyed from around the country, PG’s annual report enlists retailer respondents to share statistical estimates for their average deli department operations—inclusive of samestore sales performance, leading departmental challenges and opportunities, labor, category management practices and fastest-selling items, among other components. And though the national economy is apparently on the mend, deli directors were in no rush to upgrade the department’s sales outlook for the next 12 months, as evidenced by roughly one-third (32 percent) who forecasted higher samestore deli department sales through the end of March 2010, vs. last year’s 77 Service Deli Performance Research by Debra Chanil Analysis by Meg Major 2008 43.6 Gross Margin Deli SKUs 44.2% fter consecutive years of flat sales and stale performance, in-store bakery department performance is on the rise, but there still remains ample room for continued improvement, according to the latest insights revealed in Progressive Grocer’s 2009 annual Bakery Operations Review. Among the key highlights of the annual “state of the in-store bakery” study, 73 percent of supermarket bakery officials polled said their in-store bakery sales have increased this year, which is up a full three points vs. last year. And in spite of the fact that the overwhelming majority of retailers posted higher bakery sales during the 12-month measuring period vs. last year’s study, the gap similarly widened as 13 percent of retail bakery survey panelists posted declining category sales, along with the same amount of respondents whose sales remained the same. And though turning a healthy profit in the bakery department has long Bakery Sales Change in Past 12 Months (Ending March 2009) required a delicate balancing act—even more so during a profoundly trying economic cycle that found incremental spending reduced to a bare minimum— 56.3 percent of survey executives said that the at-home eating movement was especially good for bakery dollar sales, with another 43.7 percent indicating no change. In terms of the effects of more meals being eaten at home rather than in restaurants, 47 percent reported increases in bakery unit volume, with 41.2 indicating no change and 11.8 reporting decreases. Despite the escalating Consumer Price Index (CPI) for cereal and bakery products, which rose by a whopping 10.2 percent in 2008 vs. a 4.4 percent jump for 2007—and which is expected to land between 2.5 percent and 3.5 percent during 2009—it would appear that many bakery directors choose to absorb Gross Margin 47.0% 3.4 47.4% 3.5 Deli Department Labor as a % of Sales Change in Deli Department Profits: Profits are Up Profits are Down 26.6% 26.2% Bakery Department Labor as a % of Sales Employees per Store: Full-Time Employees per Store: Part-Time 28.9% 4.0 27.2% 3.8 Increase 40.9% 22.7% 45.5% 48.4% 22.6% Full-Time Equivalent Employees per Store Average Sales per Employee Hour Bakery SKUs 5.4 5.4 $36.00 $35.09 Decrease 18.2% Unchanged 27.3% 6.8 29.0% 6.7 Percent of Sales From Self-Service Deli Average Sales per Employee Hour 32.0% 31.60% Increase 73.3% Bakery Department Shrink as a % of Sales Change in Bakery Department Profits Profits are Up Profits are Down 7.8% 7.3% 1 2 3 4 5 Stay the Same 40.9% Full-Time Equivalent Employees per Store Average Weekly Sales per Square Foot $42.79 $42.21 Decrease 13.3% 37.5% 43.8% 48.0% 32.0% $7.35 $7.30 Average Size of Deli Department (Square Feet) Source: Progressive Grocer Market Research, 2009 1,560 47 1,550 45 Unchanged 18.8% 20.0% Net Change 3.1% Size of Deli Case (in Linear Feet) Net Change 4.9% Source: Progressive Grocer Market Research, 2009 Source: Progressive Grocer Market Research, 2009 Stay the Same 13.3% Percent of Sales From Self-Service Bakery Source: Progressive Grocer Market Research, 2009 76.6% 75.3% Average Size of Bakery Department (Square Feet) 1,325 1,290 • Progressive Grocer • Deli Operations Review 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com • Progressive Grocer • Bakery Operations Review 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com More ONLINE This is a PDF file that is available for immediate download after purchase. Requires Adobe Acrobat Dig up actionable research and additional intelligence at Progressivegrocer.com This is a PDF file that is available for immediate download after purchase. Requires Adobe Acrobat • Progressive Grocer • October 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.Progressivegrocer.com http://www.Progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - October 2009

Progressive Grocer - October 2009